Taxes
Portugal — Tax: System Overview
Portugal's tax authority (Autoridade Tributária) administers taxes through the Portal das Finanças. For 2026 the personal income tax (IRS) brackets were updated by 3.51%, and the Government's September 2026 decision reduces the rates by between 0.3 and 0.5 percentage points between the first and sixth brackets; the top rate appears as 48% in the Government's simulation, while the 2026 withholding tables show a maximum marginal rate of 47.17%. VAT is 23% on the mainland. The official pages do not confirm the test for tax residence, so check the IRS Code and the Autoridade Tributária.
VerifiedGovernment / official sourceAutoridade Tributária; Governo de Portugal — IRS 2026Last reviewed: 2026-10-23
Key facts
- IRS brackets were updated by 3.51% for 2026.
- The September 2026 decision reduces rates by 0.3 to 0.5 percentage points between the first and sixth brackets.
- The top IRS rate appears as 48% in the Government's simulation; the 2026 withholding tables show 47.17% as the maximum marginal rate.
- The tax residence test is not confirmed in these official pages; check the IRS Code.
Common mistakes
- Treating the withholding-table rate as the final IRS rate — withholding is not the same as the assessed tax.