--- title: "Effective IRS rate drops to 11.65% and nearly half of families pay no tax" description: "Effective IRS rate fell to 11.65% in 2024. Learn why 44.70% of families pay no tax and how deductions and benefits explain the drop." lang: en json-ld: | [ { "@context": "https://schema.org", "@type": "Article", "headline": "Effective IRS rate drops to 11.65% and nearly half of families pay no tax", "description": "Effective IRS rate fell to 11.65% in 2024. 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[Home](/en) 2. [Blog](/en/blog) 3. Effective IRS rate drops to 11.65% and nearly half of families pay no tax [Back to blog](/en/blog) [irs](/en/blog?tag=irs)[fiscalidade](/en/blog?tag=fiscalidade)[autoridade-tributaria](/en/blog?tag=autoridade-tributaria)[familias](/en/blog?tag=familias)[deducoes](/en/blog?tag=deducoes)[2024](/en/blog?tag=2024) # Effective IRS rate drops to 11.65% and nearly half of families pay no tax ![Pedro Flores](/images/authors/pedro-flores.png) [Pedro Flores](/en/blog/author/pedro-flores)[](https://www.linkedin.com/in/pedroflores/) 27 April 2026· 2 min read Share ![Effective IRS rate drops to 11.65% and nearly half of families pay no tax por Pedro Flores - Grupo Your Contabilidade](https://xmvtahclopqwmxwnbimy.supabase.co/storage/v1/object/public/blog-images/grupo-your-irs-taxa-efetiva-2024-cai.jpg "Effective IRS rate drops to 11.65% and nearly half of families pay no tax por Pedro Flores - Grupo Your Contabilidade") ## In this article - [Nearly half of households pay no IRS](#nearly-half-of-households-pay-no-irs) - [Labour and pensions still dominate](#labour-and-pensions-still-dominate) - [Special-rate income jumps nearly 20%](#special-rate-income-jumps-nearly-20) - [System keeps strong progressivity](#system-keeps-strong-progressivity) - [Lisbon and Porto concentrate two-thirds of the tax](#lisbon-and-porto-concentrate-two-thirds-of-the-tax) - [Deductions and benefits weigh nearly half](#deductions-and-benefits-weigh-nearly-half) The effective tax burden on Portuguese household income fell again in 2024, according to statistics published this Monday by the Tax Authority (AT). The **effective IRS tax rate dropped to 11.65%**, down from 12.85% in 2023 and 13.05% in 2022, a relief of 1.20 percentage points in a single fiscal year. The drop occurs in a seemingly paradoxical scenario: declared aggregate income **grew 9.64%** year-on-year, while liquidated IRS fell slightly (-0.14%). In short, more is declared and proportionally less is paid. ## Nearly half of households pay no IRS The number of households filing IRS returns grew 3.31% in 2024, but only **55.30% ended up with tax due**. This means **44.70% of families paid no IRS at all**, the highest exemption level recorded in the three-year period. ## Labour and pensions still dominate - **Dependent labour:** 64.68% of aggregate income - **Pensions:** 25.23% - **Business and professional income:** 5.03% ## Special-rate income jumps nearly 20% One of the most striking signs of 2024 is the income subject to special rates, which **grew 19.23%**. Property income (rents) accounts for 44.14%, followed by labour income (19.94%) and capital gains (18.22%). **86.90% of this income is above 40,000 euros annually**. ## System keeps strong progressivity Households earning between 40,000 and 100,000 euros (22.35% of taxpayers) account for 41.67% of total revenue. Those above 100,000 euros (only 3.69%) bear 35.10% of IRS collected. ## Lisbon and Porto concentrate two-thirds of the tax Lisbon, Porto, Setúbal, Braga and Aveiro together account for 63.60% of households, 66.47% of aggregate income and **72.86% of liquidated IRS**. ## Deductions and benefits weigh nearly half In 2024, deductions reached 4,719 million euros (27.27% of liquidated IRS) and [tax benefits](/en/tax-benefits-simulator "Tax Benefits Simulator") totalled 3,379 million euros (19.53%). The non-habitual residents regime alone represents 57.57% of total benefits. **Need to optimise your IRS or understand the impact of these trends?** Talk to our [accounting](/en/accounting) team. 0 0 Share ### Get the latest tax news Subscribe to our newsletter and receive articles, tax alerts and tips directly in your inbox. Subscribe I agree to receive email communications from Grupo Your. I can unsubscribe at any time. My data will be processed according to the [privacy policy](/en/privacy-policy). ### Need help with your company? Talk to us and receive a proposal tailored to your business. [Company Formation](/en/company-formation)[Accounting](/en/accounting)[Payroll](/en/payroll)[Tax Consulting](/en/tax-consulting) ### More on irs [View all](/en/blog?tag=irs) [ ![Working from home and selling it: the tax authority demands an exclusivity the law does not require por Pedro Flores - Grupo Your Contabilidade](https://xmvtahclopqwmxwnbimy.supabase.co/storage/v1/object/public/blog-images/grupo-your-uso-profissional-habitacao-propria-permanente-irs.jpg "Working from home and selling it: the tax authority demands an exclusivity the law does not require por Pedro Flores - Grupo Your Contabilidade") #### Working from home and selling it: the tax authority demands an exclusivity the law does not require The Portuguese tax authority refused the capital gains reinvestment relief to a lawyer working from home, for lack of exclusive residential use. The law requires no such exclusivity - and case law confirms it. ![](/images/authors/pedro-flores.png)Pedro Flores · 20 Aug ](/en/blog/working-from-home-capital-gains-own-permanent-residence-pit) ### Recent articles [View blog](/en/blog) [ ![IMI and AIMI in 2026: Payment Deadlines, Installments and How to Reduce the Amount Payable por Pedro Flores - Grupo Your Contabilidade](https://xmvtahclopqwmxwnbimy.supabase.co/storage/v1/object/public/blog-images/grupo-your-imi-aimi-2026-prazos-como-reduzir.jpg "IMI and AIMI in 2026: Payment Deadlines, Installments and How to Reduce the Amount Payable por Pedro Flores - Grupo Your Contabilidade") Impostos sobre o Património #### IMI and AIMI in 2026: Payment Deadlines, Installments and How to Reduce the Amount Payable ![](/images/authors/pedro-flores.png)Pedro Flores · 5 Aug ](/en/blog/property-tax-imi-aimi-2026-deadlines-reduction)[ ![Productivity Bonuses and Salary Increases: The Tax Benefits Your Company Is Not Using (2026) por Pedro Flores - Grupo Your Contabilidade](https://xmvtahclopqwmxwnbimy.supabase.co/storage/v1/object/public/blog-images/grupo-your-premios-produtividade-valorizacao-salarial-2026.jpg "Productivity Bonuses and Salary Increases: The Tax Benefits Your Company Is Not Using (2026) por Pedro Flores - Grupo Your Contabilidade") Fiscalidade de Empresas #### Productivity Bonuses and Salary Increases: The Tax Benefits Your Company Is Not Using (2026) ![](/images/authors/pedro-flores.png)Pedro Flores · 4 Aug ](/en/blog/productivity-bonuses-salary-increase-tax-benefits-2026)[ ![Short-Term Rentals in 2026: Taxation, VAT, Coefficients and Obligations por Pedro Flores - Grupo Your Contabilidade](https://xmvtahclopqwmxwnbimy.supabase.co/storage/v1/object/public/blog-images/grupo-your-alojamento-local-fiscalidade-2026.jpg "Short-Term Rentals in 2026: Taxation, VAT, Coefficients and Obligations por Pedro Flores - Grupo Your Contabilidade") Fiscalidade #### Short-Term Rentals in 2026: Taxation, VAT, Coefficients and Obligations ![](/images/authors/pedro-flores.png)Pedro Flores · 3 Aug ](/en/blog/short-term-rental-taxation-portugal-2026)[ ![Capital Gains on Selling a House: How IRS is Calculated and How to Reinvest Without Paying (2026) por Pedro Flores - Grupo Your Contabilidade](https://xmvtahclopqwmxwnbimy.supabase.co/storage/v1/object/public/blog-images/grupo-your-mais-valias-venda-casa-irs-2026.jpg "Capital Gains on Selling a House: How IRS is Calculated and How to Reinvest Without Paying (2026) por Pedro Flores - Grupo Your Contabilidade") IRS #### Capital Gains on Selling a House: How IRS is Calculated and How to Reinvest Without Paying (2026) ![](/images/authors/pedro-flores.png)Pedro Flores · 2 Aug ](/en/blog/capital-gains-property-sale-irs-portugal-2026)[ ![Autonomous Taxation in 2026: How Much Does a Company Car Really Cost por Pedro Flores - Grupo Your Contabilidade](https://xmvtahclopqwmxwnbimy.supabase.co/storage/v1/object/public/blog-images/grupo-your-tributacao-autonoma-2026-viatura-empresa.jpg "Autonomous Taxation in 2026: How Much Does a Company Car Really Cost por Pedro Flores - Grupo Your Contabilidade") Fiscalidade de Empresas #### Autonomous Taxation in 2026: How Much Does a Company Car Really Cost ![](/images/authors/pedro-flores.png)Pedro Flores · 1 Aug ](/en/blog/autonomous-taxation-2026-company-car-portugal)[ ![IFICI in 2026: Who Can Pay 20% IRS in Portugal (the Regime That Replaced the NHR) por Pedro Flores - Grupo Your Contabilidade](https://xmvtahclopqwmxwnbimy.supabase.co/storage/v1/object/public/blog-images/grupo-your-ifici-2026-regime-substituto-rnh.jpg "IFICI in 2026: Who Can Pay 20% IRS in Portugal (the Regime That Replaced the NHR) por Pedro Flores - Grupo Your Contabilidade") IRS #### IFICI in 2026: Who Can Pay 20% IRS in Portugal (the Regime That Replaced the NHR) ![](/images/authors/pedro-flores.png)Pedro Flores · 31 Jul ](/en/blog/ifici-2026-portugal-nhr-successor-20-percent-tax) Explore by topic [irs](/en/blog?tag=irs)[fiscalidade](/en/blog?tag=fiscalidade)[autoridade-tributaria](/en/blog?tag=autoridade-tributaria)[familias](/en/blog?tag=familias)[deducoes](/en/blog?tag=deducoes)[2024](/en/blog?tag=2024) Grupo Your ### What can we do for you? 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