IRS 2024 — lower-bracket marginal rates cut
The 2024 IRS (personal income tax) reform retroactively cut marginal rates across the lower and middle brackets, with the second bracket's rate reduced from 21% to 16.5% as the headline change. The measure was designed to raise middle-income take-home pay and was applied retroactively from 1 January 2024 with adjustments processed in the 2024 annual return.
Who it affects: All Portuguese-resident income-tax payers, with the largest relative effect on middle earners.
Autoridade Tributária e Aduaneira ↗ · Portuguese Government Portal ↗ · Diário da República ↗ · verified 2026-04-18