Couple with two children saves between 116 and 343 euros per year. See the simulator with the new IRS rates · Bica

Labor & Taxes

Couple with two children saves between 116 and 343 euros per year. See the simulator with the new IRS rates

The government has introduced a tax reduction for the first six income brackets of the IRS, effective retroactively to January 2026. The change will be reflected in monthly salary and Christmas bonus withholding starting in November 2026. A government simulator is available online to calculate individual savings based on household income and dependents.

Why it mattersIf you are a tax resident in Portugal, you will see a reduction in the IRS withheld from your salary and Christmas bonus beginning in November, effectively increasing your net take-home pay for the remainder of the year.

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