The thresholds defining each income bracket in the IRS table will be updated by 3.51% in 2026, according to the proposed State Budget for 2026 (OE226), as stated in a decree published today in the Diário da República.
Since 2024, the IRS Code has stipulated an automatic annual updating of the brackets—not of the rates, but the amounts delineating each of the nine tiers of taxable income—based on “the rate of change in the GDP deflator and the rate of change in GDP per worker.”
The legislation requires, by article, that governments publish a decree with the value of the update, calculated from the values “published by the National Institute of Statistics in the quarter immediately preceding the presentation of the State Budget Law proposal.”
[News in update]
