In 2024, most families will pay less income tax.

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"In 2024, the IRS will decrease for the majority of families"

The Minister of Finance, Fernando Medina, explains that, with the State Budget of 2024 (OE2024), IRS will decrease for most families. A measure that will have a special impact on the middle class.

It was on his social media that the minister shared that "in 2024, the IRS will decrease for the majority of families, especially for the middle class. The updating of brackets and new rates will provide more income to the Portuguese."

The publication came after Medina's presence in Parliament, focusing on explaining the OE2024 in the Budget and Finance Committee. The Minister of Finance justified that "he had the opportunity to reinforce the Government's work in the cross-cutting reduction of the IRS burden, a relief that in 2024 will have a budgetary impact of around 1.327 billion euros".

"All aggregates will benefit from this reduction"

The goal of this tax update, according to Medina, will be to "alleviate the tax burden on families and strengthen the economy." These "are the two commitments that the Government has taken on and has fulfilled," so "the OE2024 continues these objectives."

The change imposed in the new OE2024 will allow the average IRS rate to decrease by up to 2.4%, and will have a "greater emphasis on households with incomes grossing up to 2,000 euros per month", as emphasized by Medina. However, according to the Government's website, "All households will benefit from this reduction: (i) through the protection of the national minimum wage; as well as (ii) through the reduction of the average tax rate for all income brackets".  

Saving with IRS payment is a good step towards rebalancing accounts in 2024, but it will not be the only measure with appreciation on your income.

Other measures are at stake in the OE2024, also focusing on housing support and, especially, on Portuguese housing loans.

However, some of these measures have required conditions imposed, which may exclude certain cases.  

So, if you need to save with your home loan or associated insurance you can always turn to a credit intermediary, like Poupança no Minuto, to present you with different solutions. If you are interested in simulating your specific case, contact us and ensure a free intermediation service, which can help you save on these products.