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The Government does not intend to introduce changes in the levels of the IRS next year, according to the proposed State Budget 2021, delivered this Monday to Parliament. The number of tranches remains unchanged and the respective rates of the taxable income tranches in the IRS table for 2021 have not been adjusted considering this year’s inflation, as this indicator is expected to reach negative values in 2020.
It should be remembered that the Government has included in the Stability Program a change in IRS levels for 2021, but the pandemic ended up changing the turns of Finance intentions. The document provided for a reduction of the IRS in charge of the families for an amount equivalent to 200 million euros. This tax relief is now in the drawer, the decrease of which would be done with one more step in the ranks, after what was done in 2018, transforming the table to have eight levels of income, compared to the current seven.
In OE2020, although the number of tranches and the respective rates have been maintained, the taxable income tranches in the IRS table for 2020 have undergone some adjustments.
This year, the limits of the taxable income brackets in the IRS table were updated by 0.3%, a value that corresponded to the inflation rate verified until November 2019 and that accompanied the update of salaries in the Public Function.
The number of tranches and the respective rates were maintained, as in OE2021, but the minimum and maximum limits of taxable income within each level changed.
This year, the distribution of taxpayers, according to their declared income, in the seven tax brackets created in 2018 (until 2017 there were only five tax brackets) remained unchanged, as in the OE of next year. The same in relation to the applicable rates.
IRS Table for 2021
| He passed | Taxable income | Normal price | Average rate |
| 1st | up to 7,112 euros | 14.5 | 14.5 |
| 2nd | more than 7,112 euros to 10,732 euros | 2. 3 | 17,367 |
| 3rd | more than 10,732 euros to 20,322 euros | 28.5 | 22,621 |
| 4th | more than 20,322 euros to 25,075 euros | 35 | 24,967 |
| 5th | more than 25,075 euros to 36,967 euros | 37 | 28,838 |
| 6th | more than 36,967 euros to 80,882 euros | Four. Five | 37,613 |
| 7th | more than 80,882 euros | 48 | – |
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