In the “Local Income Statistics” for the year 2021, INE revealed that the median value of declared gross income deducted from IRS (Single Income Tax) paid by taxable person was 10,128 euros in Portugal in that year.
In 69 municipalities, the median income values were higher than the national reference, and the municipalities with median values above 12,000 euros were Oeiras (14,552 euros), Lisbon (13,378 euros), Cascais (12,296 euros), Alcochete (12,239 euros) and Coimbra (12,055 euros).
Between 2020 and 2021 there was an increase in the annual rate of change in the median value of income in 83% of the municipalities.
In 58 municipalities, the acceleration of income was greater than or equal to that seen in the country (more 3.5 percentage points), with Albufeira being the municipality that presented the highest increase (more 8.4 percentage points).
In 30 municipalities, inequality in income distribution was higher than in the country, with emphasis on the municipalities of Lisbon (42.5%), Porto (42.0%), Vila do Porto (40.7%) and Cascais (40.6%).
Between 2020 and 2021, 75% of the municipalities showed a reduction in the asymmetry of the declared gross income deducted from the IRS paid by the taxpayer, with the municipality of Vila do Porto (minus 1.7 percentage points), on the island of Santa Maria, in the Azores, registering the greatest reduction.
According to INE, “all municipalities increased the median value of income per taxable person and more than 35% of municipalities grew above the country”.
“In 2021, the median value of declared gross income deducted from the IRS paid by the taxpayer increased by +4.8%, compared to the previous year (+1.3% in 2020)”, describes INE.
INE released the 2021 Local Income Statistics based on anonymised tax data from the Tax and Customs Authority (AT) relating to the settlement note of the Personal Income Tax (IRS – Model 3), obtained under a protocol signed between the two entities.