Portugal IRS withholding tables 2026: how they work
Every month your employer withholds part of your salary for income tax (IRS) using official withholding tables. Here is how the 2026 tables work, which one applies to you and how much is withheld at different salaries.
What withholding is
Withholding is an advance on your annual IRS. The following spring your tax return works out the real tax (with the tax brackets, deductions and family situation) and compares it with what was withheld: you get a refund or pay the difference. The 2026 mainland tables are in Despacho 233-A/2026 (published 6 January 2026); Madeira and the Azores publish their own, lower tables.
Which table applies
| Table | Situation | Per dependant |
|---|---|---|
| I | Single without dependants, or married with two earners | €21.43 (married, two earners) |
| II | Single with dependants | €34.29 |
| III | Married, single earner | €42.86 |
| IV–VII | Holder with a disability of 60% or more (by family situation) | varies |
Tables IV to VII apply to holders with a disability of 60% or more. Pensions have their own tables. The table is chosen from the information you give your employer (marital status, number of dependants, disability), so keep it up to date: if you marry, have a child or your spouse stops working, tell HR.
The formula
Withholding = R × marginal rate − fixed deduction − amount per dependant × dependants, where R is monthly taxable pay. In table I there is no withholding up to €920; between €920 and €1,042 a sliding deduction smooths the start; from €1,212 to €1,819 it is 24.1% × R − €193.33. With three or more dependants the rate drops by 1 point. Each dependant with a disability adds a further deduction (€84.82, or €42.41 for two-earner couples), and a single earner with a disabled spouse deducts another €135.71. The result can never be negative.
Since 2023 the tables work like the tax brackets themselves — a marginal rate and a fixed deduction — rather than a single flat rate per band. That is why a pay rise never lowers your take-home pay.
Examples for 2026
| Gross | Table I | Table II (1 child) | Table III | Net (table I) |
|---|---|---|---|---|
| €920 | €0.00 | €0.00 | €0.00 | €818.80 |
| €1,000 | €36.00 | €1.71 | €4.05 | €854.00 |
| €1,500 | €168.17 | €133.88 | €94.18 | €1,166.83 |
| €2,000 | €301.34 | €267.05 | €174.07 | €1,478.66 |
| €3,000 | €663.14 | €628.85 | €400.28 | €2,006.86 |
Net is after 11% Social Security, before the meal allowance.
Worked example: €1,500 gross
Ana is single with no children. Table I: 1,500 × 24.1% = €361.50, minus €193.33 = €168.17 withheld. Social Security is €165.00, so she takes home €1,166.83 plus her meal allowance. With one child (table II) the withholding would be €133.88. With three children the rate falls to 23.1% and she deducts 3 × €34.29, so only €50.30 is withheld.
The 2026 rate cut and 2027
The lower rates for brackets 1–6 approved by Parliament in October 2026 (still awaiting publication) do not change the tables by themselves: that would need a new despacho. Otherwise the whole effect comes through your refund in 2027. The 2027 tables have not been published yet; they normally appear in early January.
Bonuses and special cases
- Holiday and Christmas bonuses are withheld separately, as if they were the only income that month (see holiday and Christmas bonuses).
- IRS Jovem: the table rate is applied only to the non-exempt part of your pay.
- Overtime is withheld at half the month's effective rate.
- You may ask for a higher rate, never a lower one. Non-residents have 25% withheld.
Common mistakes
- Thinking withholding is your final tax.
- Not updating your employer when you marry or have a child.
- Two-earner couples declaring "single earner" to take home more, then owing tax in June.
- Confusing the table's marginal rate (31.1% at €2,000) with the effective rate (15.1%).
FAQ
Is tax withheld on the minimum wage?
No. At €920 a month there is no withholding. See the minimum wage guide.
Can I ask for less to be withheld?
No. The table for your situation is the minimum; you can only ask for a higher rate, for example if you have other income and want to avoid a bill in June.
Can a pay rise lower my take-home pay?
No. The current tables are continuous, so net pay always rises with gross.
Are the 2027 tables out?
Not yet; they are usually published in early January. Our calculator uses an estimate until then.
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