DREM releases income statistics for 2024 based on personal income tax returns
The Regional Directorate of Statistics of Madeira (DREM) continues its annual publication of a set of information based on anonymised tax data from the Tax and Customs Authority (AT), relating to the Personal Income Tax Assessment Notice (IRS - Form 3). These data, relating to 2024, are obtained under an agreement established between Statistics Portugal (INE) and the AT.
This study releases various indicators relating to gross reported income (either on its own or minus personal income tax paid), by tax household or taxpayer, as well as some variables that make it possible to assess the inequality of the distribution, including the Gini coefficient and the P80/P20 ratio.
In this release, DREM provides a breakdown by municipality and by parish of the Region (in some cases limited due to an insufficient number of observations).
Autonomous Region of Madeira ranks third among the 9 NUTS 2 regions in median value of gross reported income minus personal income tax paid per taxpayer
In 2024, the Region recorded 135 890 tax households and 182 777 taxpayers. Both variables show increases of 3.7% and 3.2%, respectively, compared with 2023. Nationally, the changes were, in the same order, 2.6% and 2.3%.
In the same year, gross reported income in the Autonomous Region of Madeira (ARM) was around 3 097.2 million euros (+11.3% compared with the previous year), which translated into an average value per tax household of 22 792 euros (21 237 euros in the preceding year). In turn, the median (the central value of a set of numbers ordered in ascending order) of gross reported income per tax household stood at 15 279 euros, up 6.5% on the preceding year, a larger change than that recorded nationally, which was +6.2%.
In 2024, gross total reported income minus personal income tax paid amounted to 2 842.3 million euros (+12.5% in 2023, a larger change than that recorded nationally, which was +11.2%), which translates into a median value per tax household of 14 857 euros (14 886 euros nationally).
Among the 9 NUTS 2 regions, the ranking of median gross reported income minus personal income tax paid per taxpayer is led by Grande Lisboa (13 820 euros), which stands out clearly from the remaining regions, followed by Peninsula de Setúbal (13 284 euros), the ARM (12 626 euros) and the Autonomous Region of the Azores (12 565 euros), all above the national median, which was 12 316 euros. Below this median are Norte, which records the lowest value (11 766 euros), Algarve (11 836 euros), Alentejo (12 022 euros), Oeste e Vale do Tejo (12 115 euros), and Centro (12 250 euros).
Slight increase in inequality as measured by the Gini coefficient in the ARM compared with 2023
The Gini coefficient is an indicator of inequality in the distribution of income that seeks to summarise the asymmetry of that distribution in a single value. It ranges between 0% (when all taxpayers have equal income) and 100% (when all income is concentrated in a single taxpayer).
In 2024, the Gini coefficient of gross reported income minus personal income tax paid per taxpayer was 35.9% in the Region (35.6% nationally), having increased by 0.1 percentage points compared with 2023. By region, Alentejo (32.2%), Oeste e Vale do Tejo (32.6%), Centro (33.1%), Algarve (34.8%), Peninsula de Setúbal and Norte (both at 34.8%) were below the national average, while Grande Lisboa (38.9%), the ARA (36.6%) and the ARM (35.9%) were above it.
Santa Luzia leads among the parishes of Funchal with the highest median gross reported income minus personal income tax paid per taxpayer
In 2024, 6 of the 10 parishes of Funchal recorded median gross reported income minus personal income tax paid per taxpayer higher than that of the municipality (13 559 euros), with the parishes of Santa Luzia (14 636 euros), São Martinho (14 454 euros), Sé (14 361 euros) and São Pedro (14 121 euros) recording the highest values, above the 14 000 euros threshold. At the opposite end are Monte (12 835 euros) and Santo António (12 883 euros), the only two parishes below the 13 000 euros threshold. Intermediate values are found in São Roque (13 023 euros), São Gonçalo (13 154 euros), Santa Maria Maior (13 709 euros) and Imaculado Coração de Maria (13 720 euros).
With regard to the Gini coefficient of the above indicator, Sé stands out with the highest value (41.6%) and Santo António with the lowest (33.8%).
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