Wages: Whoever wins up to this amount will not pay IRS in 2027

Qwe'll win up to eur 970 will not pay IRS in 2027, according to the proposal from the State Budget for 2027 (OE2027), delivered to Parliament last week. 

This is because, in practice, the proposal of the Executive of Luís Montenegro for the OE2027 increases the reference value of the minimum existence, i.e. the IRS-free annual income.

Accounts made, who earns up to 970 euros per month will not pay IRS next year, and this will also be the minimum wage in 2027.

What is the minimum existence?

The minimum existence is a tax rule exempting citizens with lower incomes in whole or in part for net earnings is never less than a certain amount.

The government wants this reference to be “equal to the highest value between 13,580 euros and 1,5 × 14 × Social Support Indexant (IAS)”, according to the text of the legislative proposal.

Limits of the nine tiers updated at 3.88%

The OE2027 proposal includes, in addition to the review of the minimum existence, a update the limits of the nine IRS echelons in 3.88%.

The rate of the first step, which currently covers tax incomes up to EUR 8,342 per year, covers up to EUR 8,666.

The 2nd step rate, which currently applies to amounts above EUR 8,342 and up to EUR 12.587, will start at EUR 8,666 and will reach EUR 13,075.

The 3rd level rate, instead of covering values above EUR 12.587 and EUR 17.838, will be between EUR 13,075 and EUR 18,530.

The fourth step rate, 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 5th rate, currently between EUR 23,089 and EUR 29,397, will apply to amounts above EUR 23,985 up to EUR 30,538.

The 6th step rate will increase to values from more than EUR 30,538 to EUR 44,762 instead of being in the range above EUR 29,397 to EUR 43,090.

The 7th level rate, which is between EUR 43,090 and EUR 46,566, will cover incomes above EUR 44,762 up to EUR 48,373.

The 8th step rate, currently for incomes from more than EUR 46,566 to EUR 86,634, will rise to more than EUR 48,373 to EUR 89,995.

The 9th step rate, which currently applies to incomes above EUR 86,634, will start to cover values above EUR 89,995.

The government proposes that the rate of the 1st step be 12.20%, that the rate of the 2nd step is 15.20%, that the rate of the 3rd step is 20.70%, that the rate of the 4th step is 23.60%, that the rate of the 5th step is 30.60%, that the rate of the 6th step is 34.60%, that the rate of the 7th step is 43.10%, that of the 8th step is 44.60% and that of the 9th step is 48.0%.

Although the rates from the 1st to the 6th steps are different from the current ones, they correspond to the proposal that Louis Montenegro's executive recently presented in parliament to lower the IRS further on the incomes of 2026.