Working Out Net Pay in Portugal 2026: Tax Tables, the Formula and Worked Examples
Net pay in Portugal in 2026 is worked out by taking two mandatory deductions off gross pay: social security (11%) and income tax withheld at source (which varies by bracket). The minimum wage of EUR 920 gross comes to EUR 818.80 net, with no income tax. For salaries above the minimum, use the formula and tables on this page, or the HVR net salary calculator →
The net pay formula for 2026
The calculation always follows three steps:
Step 1: Social security deduction Social security = gross pay x 11% Step 2: Income tax withheld at source Tax = (gross pay x marginal rate) - deductible amount - (number of dependants x additional deduction) Additional deduction per dependant: EUR 21.43 (Table I), EUR 34.29 (Table II) or EUR 42.86 (Table III) Step 3: Net pay Net pay = gross pay - social security - tax withheld
In 2026 the withholding tables use linearisation formulas in place of the old fixed tables. The point is to stop a rise in gross pay producing a fall in net pay because the employee crosses a bracket.
Income tax brackets 2026 — marginal rates and deductible amounts
The brackets were uprated by 3.51% against 2025, and the rates in the 2nd to 5th brackets came down by 0.3 percentage points.
| Annual taxable income | Marginal rate 2026 | Deductible amount |
|---|---|---|
| Up to EUR 8,342 | 12.5% | EUR 0 |
| EUR 8,342 – 12,587 | 15.7% | EUR 267 |
| EUR 12,587 – 17,838 | 21.2% | EUR 959 |
| EUR 17,838 – 23,089 | 24.1% | EUR 1,477 |
| EUR 23,089 – 29,397 | 31.1% | EUR 3,093 |
| EUR 29,397 – 43,090 | 34.9% | EUR 4,210 |
| EUR 43,090 – 46,566 | 43.1% | EUR 7,743 |
| EUR 46,566 – 86,634 | 44.6% | EUR 8,442 |
| Above EUR 86,634 | 48% | EUR 11,387 |
Note: these are the annual taxable income brackets. To work out the monthly withholding, the withholding tables of Despacho 233-A/2026 are applied to monthly pay: see the complete 2026 IRS withholding tables.
Worked examples — net pay in 2026
Example 1 — minimum wage: EUR 920 gross a month
| Gross pay | EUR 920.00 |
| Social security (11%) | -EUR 101.20 |
| Income tax withheld | EUR 0.00 (Table I has no withholding up to EUR 920 a month) |
| Net pay | EUR 818.80 |
| Cost to the employer | ~EUR 1,283 (plus 23.75% employer contribution and insurance) |
Example 2 — EUR 1,500 gross a month (single, no dependants)
| Gross pay | EUR 1,500.00 |
| Social security (11%) | -EUR 165.00 |
| Income tax withheld (Table I: EUR 1,500 × 24.1% − EUR 193.33) | -EUR 168.17 |
| Net pay | EUR 1,166.83 |
| Effective withholding rate | 11.2% |
Example 3 — EUR 2,000 gross a month (single, no dependants)
| Gross pay | EUR 2,000.00 |
| Social security (11%) | -EUR 220.00 |
| Income tax withheld (Table I: EUR 2,000 × 31.1% − EUR 320.66) | -EUR 301.34 |
| Net pay | EUR 1,478.66 |
| Effective withholding rate | 15.1% |
Example 4 — EUR 3,500 gross a month (married, both earning, 2 children)
| Gross pay | EUR 3,500.00 |
| Social security (11%) | -EUR 385.00 |
| Income tax withheld (Table I: EUR 3,500 × 39.69% − EUR 531.62 − 2 × EUR 21.43) | -EUR 814.67 |
| Net pay | EUR 2,300.33 |
The tax figures come from the 2026 mainland withholding tables (Despacho 233-A/2026, see the tables). Use the HVR calculator for an exact figure for your own circumstances.
IRS Jovem 2026 — the effect on net pay
If you are aged up to 35 and in your first year of employment, IRS Jovem removes withholding entirely up to a ceiling of EUR 29,542.15 a year (55 × the 2026 social support index of EUR 537.13).
| Year of the relief | Exemption | Annual exempt ceiling |
|---|---|---|
| Year 1 | 100% | EUR 29,542.15 |
| Years 2 to 4 | 75% | EUR 29,542.15 |
| Years 5 to 7 | 50% | EUR 29,542.15 |
| Years 8 to 10 | 25% | EUR 29,542.15 |
The ladder is set out in article 12-B(5) of the Personal Income Tax Code. To claim it, tell your employer you are within IRS Jovem and which year of the relief you are in. More detail: Full IRS Jovem guide 2026 →
Meal allowance 2026 — exempt limits
| How it is paid | Exempt limit per day, 2026 | 22 working days/month |
|---|---|---|
| In cash | EUR 6.15/day | EUR 135.30/month exempt |
| Meal card or vouchers | EUR 10.455/day (art. 2(3)(b)(2) of the Personal Income Tax Code; Ministerial Order 51-B/2026/1) | EUR 230.01/month exempt |
The meal allowance counts for neither income tax nor social security up to these limits. Anything above them is treated as employment income and taxed normally.
Total cost to the employer against the employee’s net pay
| Gross pay | Employee’s net pay | Employer cost/month | Cost to net ratio |
|---|---|---|---|
| EUR 920 (minimum wage) | ~EUR 819 | ~EUR 1,283 | 1.57× |
| EUR 1,500 | ~EUR 1,167 | ~EUR 1,961 | 1.68× |
| EUR 2,000 | ~EUR 1,479 | ~EUR 2,595 | 1.75× |
| EUR 3,500 | ~EUR 2,300 | ~EUR 4,500 | 1.96× |
The employer cost covers gross pay, the 23.75% employer social security contribution, workplace accident insurance (around 1%) and the meal allowance.
See also: The real cost of the minimum wage to employers in 2026 →
Frequently asked questions about net pay in Portugal in 2026
How do I work out net pay in Portugal in 2026?
Net pay = gross pay − social security (11%) − income tax withheld. The tax is worked out as: (gross pay × marginal rate) − the deductible amount − (dependants × the table’s additional deduction: EUR 21.43, 34.29 or 42.86). Use the HVR calculator to do it automatically.
What is the net minimum wage in 2026?
EUR 818.80 a month. The gross minimum wage of EUR 920 carries a social security deduction of EUR 101.20 and no income tax withheld, because Table I has no withholding up to EUR 920 a month.
Did the income tax brackets change in 2026?
Yes. The brackets were uprated by 3.51% and the rates in the 2nd to 5th brackets fell by 0.3 percentage points. Most employees therefore pay less tax in 2026 than in 2025 on the same gross pay.
Does IRS Jovem remove withholding entirely?
In year 1 yes, up to a ceiling of EUR 29,542.15 a year (55 × the 2026 social support index). Withholding applies only to the non-exempt part of pay (art. 99-F(4) of the Personal Income Tax Code). The exemption then steps down: 75% in years 2 to 4, 50% in years 5 to 7, and 25% in years 8 to 10 (art. 12-B(5) of the Personal Income Tax Code).
Use the HVR Net Salary Calculator to work out your exact figure for your own circumstances (marital status, dependants, IRS Jovem).
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