September salaries include a ‘bonus’ due to the updated IRS tax tables this year, but October’s wages are expected to return to lower levels. The implementation of the new IRS tables effectively provides greater monthly income for workers, especially felt with the retroactive payments in August and September. From October, the ‘normal’ IRS rates will apply, which, although lower than previous rates, are promised by the Government to continue increasing disposable income.
Private consumption is projected to “slow significantly” in 2026, the Public Finance Council (CFP) warned in a report on its ‘Economic and Budgetary Outlook 2025-2029 (update)’. This is partly due to reduced IRS refunds following this year’s adjustments to the tax tables. “Private consumption is expected to slow significantly in 2026, to 2.3%. This dynamic results from lower nominal disposable income growth, particularly in the first half of the year compared to the second half of 2025, due to the anticipated increase in IRS payment notices and reduction in refunds, following changes in withholding tables implemented at the end of 2025,” stated the CFP report.
Prime Minister Luís Montenegro announced that the Council of Ministers will approve a series of housing measures on Thursday, including increased tax deductions for tenants and reduced rates for landlords. “The focus is to promote housing at affordable prices for the Portuguese, particularly the middle class,” said Luís Montenegro during the initial remarks of the biweekly debate in the Assembly of the Republic on Wednesday.
“If you lend your car to a child and there’s an accident, does your auto insurance cover the damages? Typically, yes, but not always,” cautions DECO PROTeste. The consumer protection organization further explains, “In the case of comprehensive coverage, some insurers may double the deductible amount if the vehicle is driven by someone under 25 years of age and/or with a license for less than two years, who is not the policyholder, as they represent a higher risk than the usual driver declared in the policy.”
Fuel prices are predicted to behave differently at the start of next week: diesel is expected to become slightly more expensive, while gasoline is forecasted to decrease in price, according to predictions released this Friday by the Automobile Club of Portugal (ACP). The forecasts suggest an increase of half a cent for diesel and a decrease of one cent for gasoline.
