How this estimate is calculated
Your employer deducts 11% of your gross salary for Segurança Social, on all 14 payments and with no ceiling.
IRS is charged on your yearly pay minus the dedução específica: €4,587.09, or your Segurança Social if that is higher. Low pay gets an extra allowance, the mínimo de existência, so a salary up to €12,880 a year pays no IRS.
This estimate shows the IRS for the whole year, as settled in your annual return, after the €250 deduction for general family expenses. The monthly withholding on your payslip follows separate tables and usually comes close.
IRS rates in 2026
IRS is progressive, from 12.5% to 48%. Each rate applies only to the part of taxable income inside its bracket.
| Taxable income per year | Rate |
|---|---|
| Up to €8,342 | 12.5% |
| €8,342 to €12,587 | 15.7% |
| €12,587 to €17,838 | 21.2% |
| €17,838 to €23,089 | 24.1% |
| €23,089 to €29,397 | 31.1% |
| €29,397 to €43,090 | 34.9% |
| €43,090 to €46,566 | 43.1% |
| €46,566 to €86,634 | 44.6% |
| Above €86,634 | 48% |
Above €80,000 a surcharge (taxa adicional de solidariedade) adds 2.5%, and 5% above €250,000.
In September 2026 the Government approved lower rates for the first six brackets, backdated to January. This calculator uses the rates in the law until the change is published in the Diário da República.
IRS Jovem, IFICI and Programa Regressar
Portugal has three regimes that lower IRS for young workers and for people moving to the country. You can use only one at a time.
IRS Jovem
Up to the age of 35, part of your income from work is free of IRS for the first 10 years you earn it: 100% in the first year, 75% in years two to four, 50% in years five to seven and 25% in years eight to ten. The exempt amount is capped at €29,542.15 a year.
You choose it in your annual return, and your employer can already apply it to your withholding. Segurança Social is still due on all your pay.
IFICI (NHR 2.0)
The Incentivo Fiscal à Investigação Científica e Inovação replaced the old non-habitual resident regime (NHR). It taxes income from qualifying work at a flat 20% for 10 years, with no surcharge.
It is for people who did not live in Portugal in the previous 5 years and work in research and higher education, in highly qualified jobs at eligible companies, or in certified startups. You register by 15 January of the year after you become resident.
Programa Regressar
Former residents who return after at least 5 years abroad pay IRS on only half of their income from work, for 5 years. The excluded amount is capped at €250,000 a year.
You must become resident again by the end of 2,026 and have your tax affairs in order. It cannot be combined with IRS Jovem or IFICI.
Self-employed on recibos verdes
On the regime simplificado, IRS is charged on a fixed share of what you invoice: 75% for professions on the official list (art. 151 of the IRS code) and 35% for other services. The share is cut by 50% in your first year and 25% in the second.
Part of the deemed costs must be backed by real ones: if your invoiced expenses, plus the €4,587.09 dedução específica or your Segurança Social, add up to less than 15% of your income, the gap is added to your taxable income.
Segurança Social is 21.4% of 70% of your income, declared every quarter, with a monthly base of at most €6,445.56 and a minimum of €20 a month. You pay nothing in your first 12 months of activity.
What this estimate leaves out
- Children and other dependants, and filing jointly with a spouse.
- Deductions for health, education, housing and VAT on invoices.
- The Azores and Madeira, which have lower regional rates.
- The old non-habitual resident regime (NHR), closed to new applicants.
- Starting or leaving part way through the year.
- For the self-employed: organised accounts (contabilidade organizada), VAT, sales of goods, combining self-employment with a job, and the mínimo de existência.
Your employer also pays its own Segurança Social contributions on top of your gross salary. They are not taken from your pay.