IMI 2026: distribution of rates across municipalities
In 2026, most Portuguese municipalities will apply the minimum IMI rate, maintaining stability for most property owners. Of the 308 municipalities, only 37 announced changes: 31 decided to reduce rates and only six opted for increases. This decision reflects the intention to balance local finances while supporting families in the face of housing costs. IMI is an annual tax levied on properties, with rates set by municipalities between 0.3% and 0.45% for urban properties, while rural properties maintain a fixed rate of 0.8%.
Among the municipalities increasing IMI in 2026, some cases stand out in the Lisbon district, where rates on urban properties rise from 0.3% to 0.35% or 0.45%. There are also increases in municipalities in other districts, reflecting specific adjustments to municipal revenues. On the other hand, 31 councils decided to ease the IMI burden by applying reductions that will directly benefit household budgets. These reductions cover municipalities from north to south of the country, including major cities and smaller councils, demonstrating a widespread effort to contain the tax burden on taxpayers.
Family discounts and payment rules
In addition to maintaining or reducing rates, most municipalities will once again grant the family IMI in 2026. This discount allows the tax payable to be reduced according to the number of dependent children, with fixed amounts that vary by household: one child entitles the household to a €30 discount, two children €70, and three or more children €140. Each council defines its own rules, and the discount may apply from the first child or only to families with three or more dependants. The family IMI is granted automatically, provided the property is the household’s main and permanent residence and all household members have their tax address registered at the property, in addition to dependants being under 25 years old and having no income.
IMI payment remains unchanged. The tax is charged annually, with notification sent by the Tax Authority in April and payment starting in May. For amounts up to €100, the tax is paid in full in May. Amounts between €100 and €500 may be paid in two instalments, in May and November. Amounts above €500 may be paid in three instalments: May, August and November. This structure facilitates household budget management, allowing the IMI impact to be spread throughout the year.
Outlook and impact of IMI in 2026
The outlook for 2026 confirms that IMI will continue to be a relevant tax in household budget management, but most municipalities have chosen containment policies, maintaining the minimum rate and applying family discounts. Councils that increased the tax reflect specific revenue adjustments, but they represent a minority nationwide. The balance between maintaining municipal revenues and supporting families is evident, allowing most property owners to avoid significant changes in the tax payable.
For 2026, IMI remains an important fiscal instrument, balancing the need for municipal funding with the protection of families’ disposable income. Close monitoring of municipal rates and application of the family IMI ensure that property owners can plan their annual budgets more securely, while municipalities secure resources for local services. IMI therefore continues to play a central role in the relationship between local authorities and citizens, ensuring financial sustainability and fiscal fairness across the country.
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