DREM releases income statistics for the year 2021 based on the Personal Income Tax (IRS) return

The Regional Directorate of Statistics of Madeira (DREM) releases annual regional information based on anonymized fiscal data from the Portuguese Tax and Customs Authority (AT). The data, obtained through an agreement between Statistics Portugal (INE) and AT, pertain to the settlement note of Personal Income Tax (IRS - Modelo 3) for the year 2021 and are presented at the municipal level. The study includes various indicators related to gross reported income, both inclusive and exclusive of tax payments, for tax households and taxable individuals. Additionally, income inequality is assessed through the Gini coefficient and the P80/P20 ratio

Median Gross Income of the Autonomous Region of Madeira holds intermediate position among Portuguese NUTS2 Regions

In 2021, there were 119,605 tax households and 163,977 taxable persons in the Region, showing a growth of 2.9% and 2.3%, respectively, compared to 2020. In the country, the changes were, in the same order, 1.6% and 1.1%.

During the same year, the gross income declared in the Autonomous Region of Madeira (ARM) was approximately 2,275.0 million euros, representing a 7.6% increase compared to the previous year. This amounted to an average value of €19,021 per tax household. On the other hand, the median (the central value of a set of numbers ordered in ascending order) gross income declared per tax household was €12,558.

In 2021, the average gross reported income, less income tax paid, per taxable person was €12,486, showing a 5.5% increase compared to 2020. Meanwhile, the median income for taxable persons stood at €10,061, reflecting a 4.7% increase. At the national level, the average income was around €12,503, representing a 4.2% increase compared to the previous year. The national median income (€10,128) was €67 higher than the regional average.

Among the 7 NUTS2 regions, A.M. Lisboa (11,708 €) ranked first, significantly influencing the national value due to its population size. The A.R. Azores (10,065 €) and the ARM (10,061 €) followed in the ranking. The Norte region had the lowest median income (€9,417), with the Algarve (€9,497), Alentejo (€9,917), and Centro (€9,959) also below the €10,000 threshold.

A.M. Lisboa tops Gini Coefficient ranking, followed by the two Autonomous Regions

In 2021, the Gini coefficient of gross reported income less income tax paid per taxable person was 37.1% in the Region (36.1% in the country), indicating the level of income inequality. This coefficient increased by 0.2 percentage points compared to 2020. Among the regions, Alentejo (32.5%) and Centre (33.4%) had the lowest Gini coefficients, suggesting lower income inequality in those areas. On the other hand, A.M. Lisboa (37.5%), ARM (37.1%), and AR Azores (36.9%) had higher values, implying higher income inequality in those regions. The Gini coefficient ranges between 0% (when all taxpayers have equal income) and 100% (when all income is concentrated in a single taxpayer).

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