OECD report reveals increase in the tax burden on work in Portugal in 2023, reaching 42.3% of income. Greater aggravation for couples with dependents.
The tax burden on work in Portugal increased again in 2023, reaching 42.3% of income for single workers without children, according to the report Tax Wages from the OECD. This increase, for the fifth consecutive year, places Portugal as the eighth country with the highest tax burden among the 38 members of the OECD.
The report’s data reveals that a single, childless worker, with an average salary in 2023, took home only 57.7% of gross remuneration. Employer contributions represented, on average, 19.2% of gross income, while the IRS contributed 14.2% and Social Security, under the responsibility of the professional, absorbed 8.9% of the salary.
Globally, the average tax burden for this type of household increased to 34.8%, with increases in 23 OECD countries. Belgium leads the table with the highest tax burden (52.7%), followed by Germany, Austria, France and Italy.
The analysis also reveals a worsening of the tax burden for couples with two children, where one spouse earns 100% of the average salary and the other 67%. On average, taxes and social contributions represented 29.5% of gross income for these families, reflecting an increase compared to 2022.
In Portugal, this type of household faced an even greater increase, reaching 38.1% tax burden. The increase in the IRS was responsible for most of the increase in ten countries, including Portugal.
