IUC 2026: Portugal's annual car tax explained
IUC (Imposto Único de Circulação) is Portugal's annual road tax. You pay it for as long as a vehicle is registered in your name, even if it never leaves the garage. In 2026 it is still due in the month of registration, but the calendar changes from 2027.
Who pays
The person shown as owner in the vehicle register on the first day of the tax period (the anniversary of the registration) pays the whole year. Whether the car was used, broken down or uninsured is irrelevant: the tax is due until the registration is cancelled. If you sell a car, make sure the change of ownership is registered, or the tax office will keep billing you.
When to pay in 2026
- Cars already registered: by the last day of the month of the registration anniversary. A car first registered in March pays its 2026 IUC by 31 March 2026.
- First year (new or imported car): within 30 days after the legal deadline for registering it.
No bill arrives by post: you generate the payment reference yourself on the Portal das Finanças.
What changes in 2027 and 2028
In April 2026 Parliament approved a legislative authorisation for fixed payment dates, based on each taxpayer's total IUC rather than car by car:
| Annual IUC | 2027 (transition) | From 2028 |
|---|---|---|
| Up to €100 | October | April |
| €100 to €500 | October | April and October |
| Over €500 | July and October (or all in July) | April, July and October (or all in April) |
The final rules depend on the decree amending the IUC Code, so always check the dates on the Portal das Finanças.
Categories A and B
- Category A: passenger cars registered between 1981 and 30 June 2007. Tax depends on engine size and age; older cars pay less.
- Category B: passenger cars registered from 1 July 2007. Tax combines an engine size component and a CO2 emissions component, multiplied by a coefficient for the year of first registration.
Diesel cars in categories A and B also pay a diesel surcharge. Other categories cover goods vehicles (C and D), motorbikes (E), leisure boats (F) and private aircraft (G).
How to work out the amount
The tables are updated every year by the State Budget, so the reliable way to get the exact figure is the IUC simulator on the Portal das Finanças. You will need the category, fuel, engine size, CO2 emissions and date of first registration, all shown on the vehicle registration document. If the car is already yours, the amount appears when you generate the payment slip.
How to pay
- Log in to the Portal das Finanças (NIF and password, or Chave Móvel Digital).
- Search for "IUC" and choose the option to pay the current year's tax.
- Select the registration plate to generate a Multibanco reference.
- Pay at an ATM, by online banking, at the post office or at a tax office.
Paying late
You will owe late-payment interest and face a fine. If you settle voluntarily before the tax authority opens proceedings, you can ask for a reduced fine. Unpaid IUC ends up in tax enforcement, which can lead to bank account or salary garnishment.
Common exemptions
- Fully electric cars are exempt automatically. Hybrids generally pay.
- People with a disability of 60% or more: one vehicle per person, within emission limits, capped at €240 a year. You must apply for it.
- Historic vehicles and some public-service, diplomatic and charity vehicles.
Own property too? See our guides to IMI property tax and IMT on buying a home.