Portugal IRS Calculator 2026

HVR's Portugal IRS calculator estimates the annual income tax for people with salaries or pensions in mainland Portugal and shows whether you will get a refund or owe tax. Choose 2025 income (filed in 2026) or 2026 income (filed in 2027), enter the tax withheld, dependants and e-Fatura expenses, and compare joint and separate filing.

How the calculator works

• Specific deduction: 8.54 × IAS (€4,462.15 in 2025 and €4,587.09 in 2026) or social security contributions, if higher (Articles 25 and 53 of the IRS Code).
• Mínimo de existência for low incomes (Article 70).
• Article 68 rates for the chosen year and the solidarity surcharge above €80,000 (Article 68-A); for joint filing, the family quotient (Article 69).
• Tax credits: dependants and ascendants, general family expenses, health, education, rent, invoices and care homes (Articles 78-A to 78-F and 84), with the overall cap in Article 78(7).
• Tax withheld: the difference from the tax due is your refund or the amount to pay.

To see monthly withholding, check the 2026 IRS withholding tables and the 2026 IRS brackets.

Frequently asked questions

How is Portuguese IRS worked out for 2026?

Gross income is reduced by the specific deduction (8.54 × IAS, €4,587.09 in 2026, or social security contributions if higher) and, for low incomes, by the mínimo de existência. Article 68 rates apply to the taxable income; the tax credits in Articles 78-A to 78-F and 84 come off the tax; finally, tax withheld is compared with the tax due to see whether you get a refund or pay more.

What changed between 2025 and 2026?

2025 income (filed in 2026) uses a first bracket up to €8,059 and rates of 16%, 21.5%, 24.4% and 31.4% for brackets 2 to 5, with a €12,180 mínimo de existência. 2026 income (filed in 2027) uses a first bracket up to €8,342, rates of 15.7%, 21.2%, 24.1% and 31.1% and a €12,880 mínimo de existência. The specific deduction rises from €4,462.15 to €4,587.09.

When does joint filing pay off?

With joint filing the couple's taxable income is divided by two to find the rate and the result multiplied by two (Article 69 of the IRS Code). It usually pays off when the two incomes are very different. The choice is made each year in the return, and the calculator shows both options.

Which tax credits does the calculator include?

Dependants (€600 each, plus €126 up to age 3 or €300 from the second dependant up to age 6), ascendants (€525), general family expenses (35% up to €250 per taxpayer), health (15% up to €1,000), education (30% up to €800), housing rent (15%, with the year's limit), VAT on restaurant, car repair, hairdresser and vet invoices (15% up to €250) and care homes (25% up to €403.75).

Is there a cap on tax credits?

Yes. Health, education, housing, invoice and care home credits share an overall cap that depends on taxable income: no cap up to the first bracket, between €2,500 and €1,000 up to €80,000 and €1,000 above that, plus 5% per dependant for families with three or more (Article 78(7) and (8) of the IRS Code).