Portugal income tax calculator 2026: what you keep after tax
Enter your gross income and see your income tax, social security and take-home pay for 2026, by year and by month. For employees, freelancers and pensioners, with IFICI, NHR and IRS Jovem side by side.
Rules checked 27 October 2026 · 2026 State Budget rates · sources
Your income
Rendimento bruto
I am
Own a Portuguese company? Use our salary vs dividends calculator to find the cheapest way to pay yourself.
Your activity
Year of activity in Portugal
New freelancers pay tax on half the usual share in year 1, three quarters in year 2, and no social security for the first 12 months.
Pension paid from
Tax status
Is your job on the NHR high value-added list?
The 20% rate only covers listed jobs, such as company directors, engineers and scientists, IT specialists, doctors, university teachers, authors and artists, and skilled trades, with a level 4 qualification or five years’ experience. Other work is taxed on the normal scale.
When did you register for NHR?
If you registered before 1 April 2020, foreign pensions are tax-free for your 10 years. From that date, they’re taxed at 10%.
IRS Jovem year
For people aged 35 or under, for the first 10 years of work income.
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How Portugal works out your income tax
1
Social security comes off first
Employees pay 11% of gross pay. Freelancers pay 21.4% on 70% of their income, after their first year. Pensions pay none.
2
A deduction gives your taxable income
Employees and pensioners deduct €4,587, or their social security if that's more. Freelancers on the simplified regime pay tax on 75% of income for professional services.
3
Tax rises in slices
Each slice of taxable income has its own rate, from 12.5% on the first €8,342 to 48% above €86,634. Your top rate only applies to the last slice.
Take a €50,000 salary. Social security is €5,500. That’s more than the €4,587 deduction, so taxable income is €44,500. The slices add up to €11,436 of income tax, which leaves €33,064.
Where a €50,000 salary goes
An employee on the standard rates, 2026.
You keep €33,064Income tax €11,436Social security €5,500
2026 income tax rates in Portugal
These are the rates for mainland Portugal in the 2026 State Budget. On 9 October 2026 Parliament approved lower rates for the first six brackets, for all 2026 income. Lei 64-B/2026 (22 October) authorises the Government to set them by decree-law within 180 days, and that decree hasn’t been published yet, so the calculator uses the rates in force. Meanwhile, IRS withheld from salaries and pensions paid in November 2026 is cut by half, except for the highest monthly earners (Despacho 12523-A/2026).
Each slice of income has its own rate
Rate in force on each slice of taxable income, 2026. Hover or tap a column.
Your top rate only applies to the euros inside that last slice.
| Taxable income | Rate in force | After the October 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, a solidarity surcharge of 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.
Net salary examples for 2026
An employee on the standard rates, single, no deductions. IFICI shown for comparison.
| Gross a year | Net a year | Net a month (×14) | Net under IFICI |
|---|---|---|---|
| €20,000 | €15,492 | €1,107 | €14,717 |
| €30,000 | €21,889 | €1,564 | €21,617 |
| €40,000 | €27,451 | €1,961 | €28,517 |
| €50,000 | €33,064 | €2,362 | €35,600 |
| €60,000 | €38,025 | €2,716 | €42,720 |
| €80,000 | €47,887 | €3,420 | €56,960 |
| €100,000 | €57,442 | €4,103 | €71,200 |
| €150,000 | €79,470 | €5,676 | €106,800 |
How much more you keep with IFICI
Employee, 2026. Below the zero line IFICI leaves you with less than the standard rates.
Extra net income with IFICIBelow €32,500 IFICI costs you money. Hover or tap the line for any salary.
Below about €32,500, the standard scale leaves you more than IFICI’s flat 20%. Above it, IFICI pulls ahead fast.
IFICI, NHR and IRS Jovem
Three ways to pay less than the standard rates. You can only use one at a time.
New residents
IFICI (NHR 2.0)
20% flat on income from eligible work for 10 years. Most foreign income is exempt, except pensions.
For people who weren't tax resident in Portugal in the previous five years and work in qualifying roles: research, higher education, certified startups and some highly qualified jobs.
Apply by 15 January of the year after you become resident. Read our IFICI guide.
Age 35 or under
IRS Jovem
Part of your work income is tax-free for your first 10 years of earning: 100% in year 1, 75% in years 2 to 4, 50% in years 5 to 7 and 25% in years 8 to 10.
The tax-free amount is capped at €29,542 a year. The exempt part still counts when your tax rate is set.
You can't combine it with IFICI or NHR.
Existing holders
NHR
Closed to new applicants since 2024. If you're already registered, you keep it until your 10 years end.
20% on Portuguese work income, but only for jobs on the high value-added list (Portaria 230/2019): company directors and managers, engineers and scientists, IT specialists and technicians, doctors and dentists, university teachers, authors, journalists and artists, and skilled trades. You also need a level 4 qualification or five years' proven experience. Other work is taxed on the normal scale.
Foreign pensions depend on when you registered: tax-free if before 1 April 2020, 10% from then on.
Freelancers (recibos verdes)
Most freelancers use the simplified regime. Portugal doesn’t tax your whole turnover, only a share of it, and your activity code decides which share.
75% if your code is a profession on the official list (article 151): programmers, designers, consultants, translators, teachers and trainers, engineers, architects, accountants, lawyers, doctors and therapists, journalists, artists. You also need 15% of your income in expenses on e-fatura, or more of it gets taxed.
35% for other services, including the catch-all code 1519 for services with no specific professional code. 15% for selling goods, restaurants and hotels.
The code matters. On €40,000 from year 3, a listed profession pays about €6,260 in income tax, and code 1519 about €2,009. Pick the code that matches what you really do: the tax office can reclassify you.
In your first year of activity that share is halved, and in your second year it’s cut by a quarter. You also pay no social security for your first 12 months. After that, it’s 21.4% on 70% of your income, declared every three months.
On €50,000 of professional services from year 3, that comes to about €7,490 of social security and €8,878 of income tax, leaving €33,632.
Want to start? We can register your freelance activity for you.
How much of €40,000 gets taxed
Freelancer on the simplified regime, year 3 or later. The bar is the part of your income that's taxed.
Taxed part of €40,000Not taxed
Pensions
Pensions pay no social security in Portugal. They get the same €4,587 deduction as salaries, then the standard scale applies.
A foreign pension of €30,000 leaves about €25,189 on the standard rates. If you registered for NHR from 1 April 2020, foreign pensions are taxed at 10%, which leaves €27,459. If you registered before that date, they’re tax-free, which leaves €30,000. IFICI doesn’t cover pensions.
Some pensions, like government service pensions, can stay taxable only in the country that pays them under a tax treaty. Check the treaty with your country.
Are you tax resident in Portugal?
You’re tax resident for a year if you spend more than 183 days in Portugal in any 12-month period that starts or ends in that year. You’re also resident if you have a home here on any day in that period that suggests you mean to live in it.
In the year you move, you’re usually resident only from the day you arrive. Before that, Portugal only taxes income you earn here.
Want your real number before you move?
This calculator handles one income. Real life is usually messier: a partner, children, rent abroad, a pension and a salary, a company.
Our Tax Planning Report works out what you’ll actually pay in Portugal, which regime fits, and what to set up before you arrive.
Not sure yet? Marcar consulta fiscal em vez disso.
What this calculator doesn’t cover
More than one income. A salary plus freelance work, rent or dividends changes the rate on all of it.
Joint filing and family. Married couples can file together, and children add deductions.
End-of-year deductions. Health, education, housing, rent and general family expenses all lower the final bill.
The Azores and Madeira. Both have lower regional rates.
Capital gains, rent, crypto and foreign income. These have their own rules and rates.
Company owners. If you pay yourself from a Portuguese company, enter your salary as an employee. Company profit pays corporate tax first, and dividends are then taxed separately, usually at 28%.
Sources · rules checked 27 October 2026
- Código do IRS, article 68, tax rates (Lei 73-A/2025)
- Article 68-A, solidarity surcharge
- Article 31, simplified regime for freelancers
- Article 70, minimum existence
- Article 12-B, IRS Jovem
- Estatuto dos Benefícios Fiscais, article 58-A, IFICI
- Código do IRS, article 16, tax residency
- Portaria 230/2019, NHR high value-added jobs
- Despacho 12523-A/2026, November 2026 withholding cut
Questions people ask
As an employee on the standard rates, about €11,436 in income tax and €5,500 in social security, which leaves €33,064 a year, or €2,362 a month over 14 payments. Under IFICI you’d keep about €35,600.
Yes. Employees get 14 payments: 12 monthly salaries plus a holiday payment in summer and a Christmas payment in December. That’s why an annual salary divided by 14 gives the usual monthly figure.
No. IFICI is a flat 20%, and at lower incomes the standard scale averages less than that. On €20,000 as an employee you’d keep €15,492 on the standard rates and only €14,717 under IFICI. The switch comes at about €32,500.
The one that matches what you actually do. If it’s a profession on the article 151 list, such as programmer, designer, consultant or translator, 75% of your income is taxed. The catch-all code 1519 is taxed at 35%, but it’s only for services with no specific code, and the tax office can reclassify you. We check this when we register your activity.
It depends on when you registered and what you do. Work income gets 20% only if your job is on the high value-added list. Foreign pensions are tax-free if you registered before 1 April 2020, and taxed at 10% if you registered from that date. The calculator asks both questions when you pick NHR.
For your salary, yes: enter it as an employee. Dividends are taxed separately, usually at a flat 28%, and the company pays corporate tax on its profit first. Our salary vs dividends calculator finds the cheapest mix, and our Tax Planning Report works it out for your real numbers.
Not for new applicants. NHR closed at the start of 2024. People already registered keep it until their 10 years end. Its replacement for new residents is IFICI, which covers fewer jobs.
No. You can only use one of them. If you qualify for more than one, compare them in the calculator above and pick the one that leaves you more.
If you’re tax resident in Portugal, your worldwide income is taxable here. Double tax treaties stop the same income being taxed twice. Under IFICI, most foreign income is exempt, except pensions.
Between 1 April and 30 June 2027, on the Portal das Finanças. Most employees get an automatic return they only need to check and confirm.
On 9 October 2026 Parliament approved lower rates for the first six brackets, for all 2026 income. Lei 64-B/2026 (22 October) authorises the Government to set them by decree-law within 180 days, and that decree hasn’t been published yet, so the calculator uses the rates in force. Meanwhile, IRS withheld from salaries and pensions paid in November 2026 is cut by half, except for the highest monthly earners (Despacho 12523-A/2026). The calculator shows how much less you’d pay once the new rates apply.
No. Those deductions come off your tax at the end of the year, so your real bill is usually a bit lower than this estimate. Most people get at least €250 back through general family expenses alone.
No. It’s an estimate for one income, from the 2026 rules. For your own numbers, including family, foreign income and deductions, our Tax Planning Report works them out before you move.