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Income Tax in Portugal

Income Tax in Portugal (IRS) in 2026

Income Tax in Portugal (IRS) in 2026

As an employee, self-employed worker or retiree living in Portugal, you will have to pay income tax, called IRS. This is also true for other types of income, and like in other countries, Portuguese income tax is progressive and is directly withheld at source by the employer who then pays it to the State. In 2026, there are 9 tax brackets ranging from 12.5% to 48%, and they start from the first euro earned, with certain possible tax deductions. What are the tax brackets in Portugal? How do you calculate income tax? I am Lisbob, the expat assistant, and I tell you everything about income tax in Portugal in 2026.