IRS Jovem Calculator 2026

IRS Jovem 2026 exempts part of the income of workers up to age 35 from Portuguese income tax for 10 years: 100% in year 1, 75% in years 2-4, 50% in years 5-7 and 25% in years 8-10, capped at €29,542.15/year (55×IAS). Social security still applies. Use the calculator to see your monthly and annual saving.

How IRS Jovem works in 2026

• Eligibility — up to 35, not a dependant, category A or B income, no degree requirement.
• Duration — 10 benefit years (they need not be consecutive).
• Exemption — 100% / 75% / 50% / 25% by benefit year, up to €29,542.15 of annual income.
• Withholding — your employer can apply the exemption to monthly pay right away.

Legal basis

The regime is in article 12-B of the Portuguese IRS Code, as rewritten by Law 45-A/2024 (the 2025 State Budget). Employment (category A) and self-employment (category B) income of people aged up to 35 who are not dependants is partly exempt for the first 10 years of earning income, by opting for it in the annual return (article 12-B(1)). The exemption is 100%, 75%, 50% or 25% depending on the year, capped at 55 times the IAS (article 12-B(5)): €29,542.15 in 2026, with the IAS at €537.13. Years without category A or B income do not count — the exemption resumes until 10 benefit years are used, without going past the age limit (article 12-B(3)).

Who is excluded

You cannot use IRS Jovem if you benefit or have benefited from the non-habitual resident (NHR) regime or IFICI (article 58-A of the Tax Benefits Statute), if you opted for the returning-residents regime of article 12-A, or if your tax situation is not in order (article 12-B(9)).

Worked example

A 27-year-old in her second year of earnings makes €1,500 gross × 14 months = €21,000. The exemption is 75%: €15,750 is exempt and only €5,250 is subject to IRS. The exempt income only counts to set the rate on the rest (article 12-B(4)). In year 1 with €35,000 of income, the 100% exemption would be capped at €29,542.15, leaving €5,457.85 taxable.

Estimate based on the 2026 withholding tables — the final amount is settled in the annual return. New in Portugal? See the IFICI regime and our net salary simulator.