Introduction of the formula updating the IRS general rate bracket limits based on the change in the GDP deflator and in GDP per worker
The limits of the general IRS rate brackets will be updated annually based on the change in the Gross Domestic Product (GDP) deflator and the change in GDP per worker, according to data from Statistics Portugal (INE) for the 3rd quarter of the year before the State Budget Law enters into force.
With the new formula, the brackets are as follows:
7th bracket: taxable income between €39,791 and €43,000.
8th bracket: taxable income between €43,000 and €80,000.
9th bracket: taxable income above €80,000 (previously €81,199).
In addition, the law provides that, as part of the review of housing legislation, the Government should consider extending the deduction for interest on mortgage loans.
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