The IRS ranks will be updated by 3.88% in 2027, according to the ordinance published in the Diário da República. The update affects the values of each step and can impact the calculation of income tax.
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14/10/2026
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News to Minute, Lusa
YEAH official: the IRS echelons will be updated by 3.88% in 2027, according to the ordinance that has already been published in Diário da República. Knowing where you fit in is important to understand how the IRS is calculated on your income.
What is at the basis of this update?
The update results from an update coefficient equal to 1.0388, which results from a change in the gross domestic product deflator (GDP) of the second quarter of 2026 in relation to the annual quarter of 2025 equals 3.4124% and a change in GDP per employee in the second quarter of 2026 in relation to the annual quarter of 2025 equals 0.4567%.
What's your rank?
It should be noted that the IRS step is determined by the annual tax income, not the gross wage. In addition, the IRS is a progressive tax and therefore the rate of each step does not apply to all income.
With the update, the rate of first step, which currently covers tax income up to eur 8,342 per year, will cover up to eur 8,666.
The rate of 2nd step, which currently applies to amounts above eur 8,342 and up to eur 12.587, will start at eur 8,666 and will go up to eur 13,075.
The rate of 3rd levelinstead of covering values above eur 12.587 and eur 17.838, it will be between eur 13,075 and eur 18,530.
The rate of 4th echelon, currently applied to incomes above eur 17,838 up to eur 23,089, will cover the range of more than eur 18,530 up to eur 23,985.
The rate of 5.ºfor the time being between eur 23,089 and eur 29,397, it will apply to amounts above eur 23,985 up to eur 30,538.
The rate of 6th echelon will be increased to more than eur 30,538 to eur 44,762 instead of being in the range above eur 29,397 to eur 43,090.
The rate of 7th level, which is between eur 43,090 and eur 46,566, will cover incomes above eur 44,762 up to eur 48,373.
The rate of 8th echelon, currently for incomes from more than 46,566 to 86,634 euros, will rise to more than 48,373 to 89,995 euros.
The rate of 9th step, which currently applies to incomes above eur 86,634, will start to cover values above eur 89,995.
November Salary will be more filled with IRS relief: For who?
O Government also announced a reduction of the IRS for this yearup to the sixth step of EUR 400 million to support the middle class. However, this relief should be felt by all taxpayers who pay this tax due to the progress of the IRS.
“ This decline covers, in practice, all IRS taxpayers, even those who are above incomes, given the progressivity of the tax,” explained Prime Minister Luís Montenegro in Parliament on Tuesday.
In addition, Montenegro also clarified that “this tax relief will already be felt with a reduction in the retentions of the source in november, the salary and the Christmas allowance“.