SB2026: What changes in the IRS and the impact on individuals and micro-enterprises
With the submission of Portugal's 2026 State Budget proposal, several significant tax changes for families, workers, and microenterprises were announced. Here are the main highlights:
Main measures
- Income tax brackets will be updated by approximately 3.51%, according to the automatic formula established by law.
- An additional 0.3 percentage point reduction is expected in the marginal rates for the 2nd to 5th income brackets.
- The minimum subsistence level (the income below which income tax is not payable) will be set at 12,880 euros, ensuring that salaries of at least 920 euros per month remain exempt.
- For microenterprises, the indirect measure also comes through a reduction in the tax burden, which favors the economic environment in a lower-cost bracket for small businesses.
What are the impacts for you?
If you're an individual, these changes mean you may see a slight tax reduction or, in the worst-case scenario, a more favorable stabilization of your tax burden. The updated tax brackets and reduced rates offer more room to manage your family budget with less pressure.
But be careful, these changes may also mean a lower income tax return.
If you're a microbusiness, although the main focus is on personal income tax, the more favorable tax environment can translate into greater purchasing power for your customers, a lower relative wage burden, and better conditions for investment.
What to consider
Despite the good news, it's important to remember that:
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Updating tax brackets doesn't always eliminate the effects of inflation or automatic salary increases, so the tax burden may not decrease proportionally.
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The specific benefits depend on your individual situation: marital status, number of dependents, family income, tax deductions, etc.
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For microenterprises, support in financial and tax management remains crucial: understanding deductions and tax regimes, and optimizing the cost structure can make all the difference.