Portugal Income Tax Calculator 2026
Calculate your Portuguese taxes: IRS (Imposto sobre o Rendimento) + Seguranca Social
~$0
0 EUR
Effective rate: 0%
0 EUR
~11% (employee share)
0 EUR
Monthly: 0 EUR
Income Distribution
Effective total rate: 0%
Complete Guide to Portuguese Taxation
Portugal has a progressive tax system based on IRS (Imposto sobre o Rendimento das Pessoas Singulares) with 9 tax brackets ranging from 13.25% to 48%. The country has become a popular destination for expats thanks to its NHR regime offering significant tax advantages.
IRS: Personal Income Tax
A progressive system with 9 brackets (2026)
IRS applies to the rendimento coletavel (taxable income) after deduction of social contributions and personal allowances.
IRS Tax Brackets 2026
| Income Bracket | Rate | Parcela a abater |
|---|---|---|
| EUR 0 - 7,703 | 13.25% | EUR 0 |
| EUR 7,703 - 11,623 | 18% | EUR 365.89 |
| EUR 11,623 - 16,472 | 23% | EUR 947.04 |
| EUR 16,472 - 21,321 | 26% | EUR 1,441.20 |
| EUR 21,321 - 27,146 | 32.75% | EUR 2,880.47 |
| EUR 27,146 - 39,791 | 37% | EUR 4,034.17 |
| EUR 39,791 - 51,997 | 43.5% | EUR 6,620.43 |
| EUR 51,997 - 81,199 | 45% | EUR 7,399.72 |
| EUR 81,199+ | 48% | EUR 9,835.69 |
Social Contributions (Seguranca Social)
Employee Share
11%
Deducted from gross salary
Employer Share
23.75%
Employer contribution (not visible on payslip)
Total contributions: 34.75% of gross salary (11% + 23.75%), but only 11% affects the employee directly.
NHR (Non-Habitual Resident) Regime - Highly Attractive for Expats
The NHR regime is an attractive tax scheme for new residents in Portugal:
- Flat rate of 20% on income from high-value-added professions (engineers, doctors, architects, etc.)
- Potential exemption on foreign-source income (pensions, dividends, capital gains, royalties)
- Duration: 10 years from registration as tax resident
- Requirement: Must not have been a Portuguese tax resident for the last 5 years
Note: The NHR regime was reformed in 2024. New applications are subject to more restrictive conditions.
Popular Destination for Foreign Retirees
Advantages for retirees:
- Sunny climate and lower cost of living than Western Europe
- Historically very advantageous NHR regime (foreign pension exemption)
- Quality healthcare system at lower cost
- Large expat community in Algarve and Lisbon region
Key Tax Deductions
- Personal deduction: EUR 4,104 per taxpayer (automatically reduces IRS)
- Health expenses: 15% of expenses, up to EUR 1,000 deduction
- Education expenses: Up to EUR 800 per child (30% of expenses)
- Housing costs: Mortgage interest (up to EUR 296) and rent (up to EUR 502)
- Alimony: 100% deductible if court-ordered
- PPR (Retirement Savings Plans): Up to EUR 400/year depending on age (20% deductible)
- Invoices with NIF: Automatic deduction for receipts with tax number (restaurants, hairdressers, repairs)
Example: EUR 36,000 Gross Salary
Note: In Portugal, salary is paid over 14 months (13th + 14th month bonuses in June and November).
International Comparison
| Criteria | UK | Portugal |
|---|---|---|
| EUR 36,000 gross salary | ~EUR 29,000 net | ~EUR 24,240 net |
| Top marginal rate | 45% | 48% |
| Employee contributions | ~12% (NI) | 11% |
| Number of brackets | 3 brackets | 9 brackets |
| Expat regime | None specific | NHR (20%) |
| Cost of living | Index 100 | Index ~65 |
| Salary months | 12 months | 14 months |
Pros and Cons of Portugal
Advantages
- + Low social contributions (11%)
- + Attractive NHR regime
- + Lower cost of living
- + Pleasant climate
- + 14 months of salary
Disadvantages
- - High marginal rate (48%)
- - Lower average salaries
- - Sometimes slow administration
- - Complex tax system
Portugal has long attracted retirees with its NHR regime. Compare with European alternatives to plan your expatriation.