DREM releases income statistics for the year 2023 based on Personal Income Tax returns

The Regional Directorate of Statistics of Madeira (DREM) continues the annual publication of a set of information based on anonymised tax data from the Tax and Customs Authority (AT), related to the Personal Income Tax (IRS – Model 3) return. These data, referring to the year 2023, are obtained under a protocol signed between Statistics Portugal (INE) and the AT.

This study makes available several indicators related to gross reported income both inclusive and exclusive of tax payments, for tax household or individual taxpayer, as well as some variables that allow for the assessment of income inequality, including the Gini coefficient and the P80/P20 ratio.

In addition to the usual breakdown by municipality, as of this release, DREM also provides data at parish level within the Region (in some cases limited due to an insufficient number of observations).

ARM ranks third among the 9 NUTS 2 regions in terms of the median gross reported income net of assessed IRS per taxpayer

In 2023, a total of 131 058 tax households and 177 036 taxpayers were recorded in the Region. Both variables showed increases of 4.1% and 3.5%, respectively, compared to 2022. At national level, the changes were, in the same order, 3.1% and 2.9%.

In the same year, gross reported income in the Autonomous Region of Madeira (ARM) amounted to around 2 783.3 million euros (+10.3% compared to the previous year), which resulted in an average value per tax household of 21 237 euros (20 047 euros in the previous year). The median (which identifies the central value in a set of numbers ordered in ascending order) of gross reported income per tax household stood at 14 346 euros, +7.4% compared to the previous year, a change higher than that recorded nationally, which was +5.5%.

In 2023, gross total reported income by tax households less Personal Income Tax (IRS), amounted to 2 526.1 million euros (+10.8% compared to 2022, a change higher than that of the country, which was +8.4%), corresponding to a median value of 13 848 euros (13 842 euros at national level).

Among the 9 NUTS 2 regions, the ranking of the median gross reported income less Personal Income Tax per taxpayer is headed by Grande Lisboa (12 943 euros) and Península  de Setúbal (12 401 euros), clearly standing out from the remaining regions, followed by the Autonomous Region of Madeira (11 715 euros) and the Autonomous Region of the Azores (11 660 euros), with these four regions recording values above the national average, which stood at 11 446 euros. Below the average were Norte, which recorded the lowest value (10 885 euros), followed by Algarve (11 012 euros), Alentejo (11 168 euros), Oeste e Vale do Tejo (11 221 euros) and Centro (11 358 euros).

Inequality measured by the Gini coefficient records a slight decrease in the ARM

The Gini coefficient is an indicator of income distribution inequality that aims to summarise, in a single figure, the asymmetry of that distribution. It ranges between 0% (when all taxpayers have equal income) and 100% (when all income is concentrated in a single taxpayer).

In 2023, the Gini coefficient of gross reported income less Personal Income Tax per taxpayer was 35.8% in the Region (35.5% at national level), having decreased by 0.4 percentage points compared to 2022. By region, Alentejo (32.1%), Oeste e Vale do Tejo (32.5%), Centro (33.1%), Península de Setúbal (34.3%), Norte (34.7%) and Algarve (34.9%) were below the national average, while Grande Lisboa (38.5%), the Autonomous Region of the Azores (36.5%) and the ARM (35.8%) were above it.

Santa Luzia is the Funchal parish with the highest median gross reported income less Personal Income Tax per taxpayer

In 2023, 6 of the 10 parishes of Funchal recorded median values of gross reported income less Personal Income Tax per taxpayer above that of the municipality (12 571 euros), with particular emphasis on the parishes of Santa Luzia (13 698 euros), São Martinho (13 456 euros), São Pedro (13 236 euros) and Sé (13 096 euros), which registered the highest values, above the 13 000 euros mark. At the opposite end were Monte (11 900 euros) and Santo António (11 933 euros), the only two parishes below the 12 000 euros threshold. Intermediate values were observed in São Roque (12 016 euros), São Gonçalo (12 130 euros), Imaculado Coração de Maria (12 642 euros) and Santa Maria Maior (12 688 euros).

As regards the Gini coefficient of the above-mentioned indicator, Sé recorded the highest value (42.1%) and Santo António the lowest (33.5%).

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