Labor & Taxes
Salary of 1,500 euros 'saves' 65 euros. See the simulations
The government approved a proposal to reduce IRS tax rates for the first six brackets by 0.3 to 0.5 percentage points, pending parliamentary approval. If passed, the change applies retroactively to 2026 income, with adjustments to withholding tables expected in November, which will include a lump-sum payment for the previous months of the year. The measure covers more than 2.9 million households.
Why it mattersIf you are a taxpayer in Portugal, you can expect higher net pay in your November salary and Christmas bonus due to the retroactive tax relief, provided the bill is approved by Parliament.
