Portuguese tax figures for 2026

In 2026 Portuguese income tax has nine brackets from 12.5% to 48%, corporate tax is 19% (15% on the first €50,000 for SMEs), the IAS is €537.13, the general social security rate is 34.75% and the article 53 VAT exemption applies up to €15,000. Every figure below carries the article and law that sets it.

Last reviewed on 16 October 2026 by Hugo Ribeiro, Chartered Accountant (OCC no. 64356). This page keeps the same address from year to year and is updated whenever the law changes.

IRS brackets

Article 68 of the CIRS, as amended by Law 73-A/2025 (2026 Budget)

Personal income tax (IRS)

Personal Income Tax Code, as amended by Law 73-A/2025 (2026 Budget)

• Standard deduction, categories A and H: 4.587,09 €. Or total mandatory contributions, if higher. Legal basis: Art. 25.º, n.º 1, al. a) do CIRS (8,54 × IAS).
• Minimum subsistence threshold (reference value): 12.880 €. Legal basis: Art. 70.º do CIRS.

Social security

Contributory Regimes Code (Law 110/2009)

• IAS — Social Support Index: 537,13 €. 2.8% above the €522.50 of 2025. It indexes the minimum base for directors and several other limits. Legal basis: Portaria n.º 480-A/2025/1, de 30 de dezembro.
• Total social security rate — general regime: 34,75%. 23.75% paid by the employer and 11% by the employee. Legal basis: Art. 53.º do CRC.
• Directors performing management duties: 34,75% sobre, no mínimo, 1 IAS. Minimum base of €537.13/month in 2026, save for legal exceptions such as holding another activity already subject to contributions. Legal basis: Art. 69.º, n.º 2, do CRC.
• Self-employed workers: 21,4%. Sole traders and EIRL holders: 25.2%. Legal basis: Art. 168.º, n.º 1, do CRC.
• Quarterly declaration for the self-employed: Janeiro, abril, julho e outubro. By the last day of the month, on Segurança Social Direta, reporting the previous three months. Legal basis: Arts. 151.º-A e 152.º do CRC.
• Payment of contributions: Dia 1 a 25 do mês seguinte. Voluntary in 2026 and mandatory from 2027. The same decree also ends the DMR return. Legal basis: Decreto-Lei n.º 127/2025.

Corporate income tax (IRC)

Corporate Income Tax Code, as amended by Law 64/2025

• Standard rate: 19%. Falls to 18% in 2027 and 17% in 2028. Legal basis: Art. 87.º do CIRC; art. 3.º da Lei n.º 64/2025.
• SME rate, on the first €50,000 of taxable profit: 15%. Legal basis: Art. 87.º do CIRC; art. 3.º da Lei n.º 64/2025.
• Autonomous taxation — fully electric vehicles: 0% até 62.500 €; 10% acima. The threshold refers to the vehicle acquisition cost. Legal basis: Art. 88.º do CIRC.
• Autonomous taxation — plug-in hybrids: 2,5%, 7,5% ou 15%. Depending on acquisition cost, and provided they meet the range and emissions requirements. Legal basis: Art. 88.º do CIRC.

VAT

VAT Code

• Mainland rates: 23% · 13% · 6%. Standard, intermediate and reduced rates. The Azores and Madeira have their own rates. Legal basis: Art. 18.º do CIVA e Listas I e II anexas.
• Article 53 exemption threshold: 15.000 €. Annual turnover. Above it, the taxpayer moves to the standard VAT regime. Legal basis: Art. 53.º do CIVA, na redação do Decreto-Lei n.º 35/2025, de 24 de março.

Employment

Employment legislation published for 2026

• National minimum wage: 920 €/mês. Legal basis: Art. 3.º do Decreto-Lei n.º 139/2025.

Deadlines

Applicable orders and codes

• Modelo 22 for the 2025 period: 30 de junho de 2026. Extended from the standard 31 May deadline. Legal basis: Despacho n.º 81/2026-XXV-SEAF.

Frequently asked questions