Portugal Personal Income Tax
Detailed personal income tax rates and rules for Portugal in 2026.
Portugal's personal income tax (IRS - Imposto sobre o Rendimento das Pessoas Singulares) is levied on a progressive scale with nine brackets, ranging from 14.5% on taxable income up to €7,703 to 48% on income exceeding €81,199. An additional solidarity surcharge (taxa adicional de solidariedade) of 2.5% applies to taxable income between €80,000 and €250,000, and 5% on income above €250,000, effectively raising the top marginal rate to 53% for the highest earners. Married couples may opt for joint or separate taxation. Employment income is subject to monthly withholding at source, and annual tax returns must be filed to reconcile amounts owed or refundable.
| Income Range (EUR) | Tax Rate |
|---|---|
| €0 – €8K | 14.5% |
| €8K – €12K | 21% |
| €12K – €16K | 26.5% |
| €16K – €21K | 28.5% |
| €21K – €27K | 35% |
| €27K – €40K | 37% |
| €40K – €52K | 43.5% |
| €52K – €81K | 45% |
| €81K+ | 48% |
Filing Deadline
June 30 (for income earned in the previous calendar year)
Residency Rule
An individual is considered a Portuguese tax resident if they spend more than 183 days in Portugal during a calendar year, or if they maintain a habitual residence (habitual abode) in Portugal at any time during the year. Tax residents are subject to IRS on their worldwide income. Non-residents are taxed only on Portuguese-source income, generally at a flat rate of 25% on employment and self-employment income, and 28% on investment income.
Additional Notes
The Non-Habitual Resident (NHR) regime, which offered a flat 20% tax rate on qualifying Portuguese-source income and broad exemptions on foreign-source income for a 10-year period, was closed to new applicants effective January 1, 2024. It has been replaced by a new tax incentive for scientific research and innovation (Incentivo Fiscal a Investigacao Cientifica e Inovacao - IFICI), which provides a flat 20% rate on qualifying employment and self-employment income from eligible scientific, academic, or high-value-added activities for new residents. Existing NHR beneficiaries continue under the original terms for the remainder of their 10-year period.
How Portugal Income Tax compares
Portugal’s top personal income tax rate of 48% is the 18th highest of 203 countries TaxAtlas tracks, above the global average of 27.7% and Europe’s regional average of 32%.
