Taxes in Portugal continue to rise: find out how much each Portuguese person is paying

Taxes in Portugal continue to rise: find out how much each Portuguese person is paying

In 2025, each Portuguese person paid, on average, almost seven thousand euros in taxes, an amount that continues to rise year after year. Compared to 2024, this is an increase of 352 euros per inhabitant, while compared to 2016, the increase exceeds 2300 euros. Only during the pandemic was there a slight drop in tax collection.

IRS continues to pull revenues up

According to SIC Notícias, based on data from the National Statistics Institute (INE), the average amount of taxes paid by each citizen stood at 6,728.73 euros in 2025. This value represents a growth of 5.5% compared to 2024 and 52.2% compared to 2016.

The increase is mainly due to the performance of the Personal Income Tax (IRPF), which continues to be the largest responsible for the growth in state revenue.

The decade of almost uninterrupted increases

According to the same source, the trend over the last ten years has been clear: taxes paid by the Portuguese have increased consistently.

Only in 2020 was there a drop, with revenues of R$48.7 billion, a direct consequence of the support measures adopted during the pandemic.

Fiscal surplus above forecast

In 2025, the State raised R$99 million more than initially budgeted, confirming a larger surplus than predicted in the State Budget for this year.

In the plan presented by the Government in October 2024, total tax revenue was estimated at 70,664 million euros, a value that ended up being exceeded.

Indirect taxes gain importance in 2026

Indirect taxes should gain greater importance in the composition of revenue in 2026, suggesting that, even if the IRPF continues to grow, other taxes such as ICMS and taxes on products and consumption will have greater importance in the State’s revenue.

This adjustment reflects not only changes in consumer behavior, but also the need to balance public accounts after years of constant growth in tax collection.

Impact on the lives of Portuguese people

In recent years, the increase in the tax burden has had a direct impact on the lives of the Portuguese. The average amounts paid per inhabitant show not only a gradual increase, but also the State’s ability to exceed budget forecasts, even when some restraint was expected.

Between 2016 and 2025, accumulated growth exceeded 52%, a clear indicator that fiscal pressure remains high and, for many citizens, increasingly visible in their daily lives.

According to , this persistent increase places Portugal among the European Union countries with the highest growth in tax burden in the last ten years.

The only exception was 2020, a year marked by extraordinary measures to support the economy during the pandemic, which temporarily reduced the total taxes paid by the Portuguese.

Future perspectives

The continuous growth in revenue makes it clear that, even in years without a crisis, citizens face a constant increase in the amount they deliver to the State, while the management of public accounts continues to surprise, with revenues always higher than expected.

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