Portugal tax calculator for your 401(k), IRA and Social Security
Moving to Portugal from the US? Enter your yearly withdrawals and benefits in dollars and see the Portuguese income tax you’d pay in 2026, for you alone or as a couple, with the credit for US tax on your Social Security.
Rules checked 4 November 2026 with our partner accountant · mainland rates · sources
Your US retirement income
Who's moving
In Portugal you're each taxed on your own pensions, and each of you gets the pension deduction.
Exchange rate
euros
An example rate. Change it to today's rate.
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How Portugal taxes your US retirement income
1
Your US income is one pot
Your 401(k) and IRA withdrawals, your Social Security and any Roth growth all count as pension income in Portugal, added together for each of you.
2
A deduction comes off
Each pensioner deducts up to €4,587. What's left is taxed on Portugal's scale, from 12.5% on the first slice to 48% on the top one.
3
Credits stop double tax
Portugal credits the US tax on your Social Security, up to its own tax on it. For your 401(k) and IRA, the IRS credits the Portuguese tax instead.
Take €20,000 from a 401(k) and €20,000 of Social Security, with €2,000 of US tax already paid on the Social Security. Portugal works out €8,149 of tax on the €40,000, takes off the €2,000 credit, and you pay €6,149.
2026 income tax rates on pensions in Portugal
Pensions use the same scale as every other income. On 29 October 2026 the government approved lower rates for the first six bands, backdated to January. Until the decree is published, the calculator uses the rates in force and shows what you’d pay at the new ones.
| Taxable income | Rate in force | After the cut |
|---|---|---|
| Up to €8,342 | 12.5% | 12.2% |
| €8,342 to €12,587 | 15.7% | 15.2% |
| €12,587 to €17,838 | 21.2% | 20.7% |
| €17,838 to €23,089 | 24.1% | 23.6% |
| €23,089 to €29,397 | 31.1% | 30.6% |
| €29,397 to €43,090 | 34.9% | 34.6% |
| €43,090 to €46,566 | 43.1% | same |
| €46,566 to €86,634 | 44.6% | same |
| Over €86,634 | 48.0% | same |
On top of the scale, 2.5% applies to taxable income between €80,000 and €250,000, and 5% above €250,000. The Azores and Madeira have their own, lower rates.
What you'd pay: examples for 2026
A single person whose only income is a 401(k) or IRA withdrawal, mainland rates, before the deductions that come off the tax itself.
| Withdrawal a year | Tax at rates in force | After the cut | Share |
|---|---|---|---|
| €24,000 | €3,202 | €3,122 | 13% |
| €36,000 | €6,753 | €6,617 | 19% |
| €50,000 | €11,830 | €11,658 | 24% |
A couple pays less on the same total. If each of you takes €18,000, you each get the deduction and the lower bands, and you pay about €3,769 together, against €6,753 for one person taking €36,000.
Who taxes your income first
The US–Portugal tax treaty stops you paying both countries in full, but the order depends on the income. It matters when you file: you need the first country’s tax figure for the second return.
401(k) and IRA
Portugal taxes first
Portugal taxes your withdrawals as the country you live in.
The IRS still taxes you as a citizen, and gives you a credit for the Portuguese tax.
Social Security
The US taxes first
The IRS taxes up to 85% of your benefit.
Portugal taxes it as a pension too, and credits the US tax, up to its own tax on it.
Roth IRA
Portugal taxes it
The IRS may treat qualified withdrawals as tax-free.
Portugal taxes at least the growth, and possibly the whole withdrawal.
The full explanation, with sources, is in our guide: Moving to Portugal with a 401(k) or IRA.
Get the Portuguese side checked
A 45-minute consultation with a certified Portuguese accountant who works through your pensions, your 401(k) or IRA and the treaty, with a written summary afterwards.
For the US side, you’ll need a US-qualified adviser. Still planning your visa? See our D7 visa support.
What this calculator doesn’t cover
Your US tax. It works out the Portuguese side only. Your US tax depends on your whole US return.
Large one-off withdrawals. Cashing out a big part of your 401(k) in one year is a decision to take to advisers on both sides, ideally before you move.
US government and military pensions. The treaty has separate rules for them.
Joint filing, family deductions and other income. Married couples can choose to file together, deductions for family, health and education come off the tax at the end of the year, and other income changes the rate on all of it.
NHR holders. If you already have NHR, your foreign pension may be taxed at 10% or not at all. Our income tax calculator covers that.
The Azores and Madeira. Both have lower regional rates.
Sources · checked 4 November 2026
- US–Portugal income tax treaty, 1994, pensions, Social Security and the relief from double tax
- Código do IRS, article 11, pensions as category H income
- Article 53, the pension deduction
- Article 68, tax rates (Lei 73-A/2025)
- Article 68-A, solidarity surcharge
- Article 70, minimum existence
- Article 81, what IFICI covers
- Lei 64-B/2026, the approved rate cut
Questions people ask
It depends on how much you take out. As a single person with no other income, a withdrawal of €36,000 a year pays about €6,753 at the 2026 rates in force, or about €6,617 once the approved lower rates are published. That’s roughly 19% of the withdrawal.
Yes. Both countries can tax it. The US taxes it first, and Portugal taxes it as a pension too, then gives you a credit for the US tax, up to the Portuguese tax on that income.
Yes. The US taxes its citizens wherever they live. On your US return you claim a credit for the Portuguese tax on your 401(k) and IRA withdrawals, so you pay roughly the higher of the two countries’ tax.
Yes, if you each have your own pension income. Each pensioner deducts up to €4,587, and you’re each taxed on your own income by default.
No. Portugal doesn’t recognise the Roth’s tax-free status, so expect tax on at least the growth when you withdraw, and possibly on the whole amount.
Not if you move now. NHR is closed to newcomers, and IFICI leaves pension income out, so your withdrawals stay on the normal scale.
No. It works out the Portuguese side only. Your US tax depends on your whole US return, so a US-qualified adviser works that out.
Today’s rate is fine for an estimate. The dollar moves during the year, so your real figure in euros will differ a little.
No. It’s an estimate from the 2026 rules for mainland Portugal. For your own numbers, book a consultation with our partner accountant for the Portuguese side, and a US adviser for the US side.