Married couples with children save between €35.24 and €1,288.84 in IRS
Couples with children can expect savings of between 35.24 euros and 1,288.84 euros with the new IRS rates approved today by the Council of Ministers, according to a simulation by the consulting firm EY.
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Economia Consultora
According to the data sent by the consultant, who carried out a series of simulations, including in the face of the rates currently in force, approved by the State Budget Law for 2024, for a married taxpayer, with one income earner, one child and an income of 1,300 euros per month, the savings are 35.24 euros, a value that remains the same with two or three children.
In the case of a couple with two earners and the same income and with children, the value increases to 102.45 euros.
For a couple in similar conditions, but with an income of 1,500 euros, the savings start at 45.97 euros (one earner) and reach 130.45 euros (two earners).
Couples with children and an income of 2,000 euros save between 80.97 euros and 213.32 euros and with 3,000 euros between 148.39 euros and 876.11 euros.
For incomes of 5,000 euros, the savings are between 502.31 euros and 1,194.35 euros and with 10,000 euros they fluctuate between 1,194.35 euros and 1,288.84 euros.
EY also simulated the savings for singles, with the values being the same with and without children. Depending on the income, they are between 51.22 euros and 644.42 euros.
In January, the previous Government reduced the rates that apply to the first five IRS brackets, between 1.25 and 3.5 percentage points.
Today, the Government approved a proposal with new rates that translate into a reduction of 0.25 percentage points in the marginal rate of the 1st bracket, 0.5 percentage points in the marginal rate of the 2nd, 3rd, 4th and 7th brackets and 0.75 percentage points in the 5th bracket, in comparison with the current article 68 of the IRS Code.
In the 6th bracket, the reduction is 3 percentage points, as already mentioned, and in the 8th bracket, 1.25 percentage points.
Since the IRS is progressive, all income brackets benefit from the reduction in rates at the lower levels, with this impact being greater when, in addition to this effect, there is also a reduction in the respective marginal rate.
Read Also: IRS measures cut revenue by 3,000 million until 2028 (Portuguese version)
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