Portugal Income Tax Calculator (IRS) 2026
Enter your income and the main deductible expenses, and see whether you should expect a refund or a payment -- with 2026's brackets, and IRS withholding estimated automatically from the official tables, no need to go dig it out of a payslip.
An estimate from public rules, not your actual tax return or tax advice. 2026 figures (return filed between April and June 2027). Source: Código do IRS and Portal das Finanças.
How we calculated this
Taxable income = gross income minus the specific deduction (a minimum of €4,587.09, or 11% of gross if your mandatory Social Security contributions are higher). 2026's progressive brackets apply to that figure (halved and doubled, if you choose joint taxation). The per-dependent credit and the deductible-expense credits (health, education, housing, general expenses) are then subtracted from the resulting tax, each with its own limit, and all together capped by Art. 78º n.º 7's global limit. What's left is the tax due; the difference against what was already withheld is your refund or extra payment.
IRS withheld is estimated from the official 2026 withholding tables (dividing annual income by 14 payments -- 12 months plus the holiday and Christmas subsidies -- and applying the Mainland, Azores or Madeira table depending on the region chosen), the same source and method as our Net Salary Calculator.
Brackets are progressive, not a flat tax on everything
A common mistake is thinking that entering a higher bracket makes your whole income taxed at that rate. That's not how it works: each bracket only applies to the slice of income within that range. If your taxable income falls in the 4th bracket, for example, only the slice above the 3rd bracket's ceiling pays the 4th bracket's rate -- the rest keeps paying the lower rates of the earlier brackets. That's why earning a bit more never makes you "lose money" by moving up a bracket.
The specific deduction: the first cut before any calculation
Before any bracket comes into play, gross employment income gets an automatic specific deduction -- in 2026, the larger of €4,587.09 and your total mandatory Social Security contributions. For most workers, it's the fixed amount that applies; only those with higher mandatory contributions (for example, professional association dues) go above that. Only after this cut is your taxable income -- the amount actually subject to the brackets -- calculated.
Joint vs. separate taxation
A couple can choose separate taxation (each files their own return, with their own income) or joint taxation (incomes are combined, divided by two for the bracket calculation, and the resulting tax is then multiplied by two -- the "quociente conjugal"). This mechanism tends to benefit couples with very different incomes from each other most, because it "pushes" the higher income into a lower bracket before the calculation. When both incomes are similar, the benefit tends to be small or nonexistent.
Deductible-expense credits, and the limit that caps them all
After the bracket-based tax is calculated, there are still credits to subtract: health (15% up to €1,000), education and training (30% up to €800), permanent-home rent (15% up to €900), mortgage interest -- only for contracts signed up to 2011 (15% up to €296), and general family expenses (35% up to €250 per taxpayer, €500 under joint taxation). The sum of all of these is subject to a global limit that depends on your taxable income: no limit up to €7,479, between €1,000 and €2,500 on a declining scale up to €78,834, and a flat €1,000 above that. The per-dependent credit (€600 per dependent, more for dependents aged 6 or under) is separate and doesn't count toward this limit.
What this calculator doesn't model
It doesn't include PPR retirement savings, donations, the displaced-student regime, dependent ascendants, or non-habitual resident (NHR) or other special regimes. It also assumes income exclusively from Category A (employment) -- rental income, investment income, or capital gains aren't covered. For your real, complete situation, your actual tax return on the Portal das Finanças remains the reference.
Frequently asked questions
Does this replace the simulation on the Portal das Finanças?
No. It's a quick estimate using 2026's main rules and limits, but it doesn't model every possible deduction (for example PPR retirement savings, donations, dependent ascendants, or the displaced-student regime), and it doesn't have access to invoices you've already submitted. The official simulation inside your actual tax return, using your real data, is always what counts.
Joint or separate taxation, which should we choose?
In general, joint taxation favours couples with very different incomes from each other (the "quociente conjugal" pushes the higher income into a lower bracket before the tax is calculated), while couples with similar incomes rarely gain much from it. There's no universal answer -- if in doubt, the Portal das Finanças lets you simulate both scenarios before filing.
By when do I have to file my IRS return?
Filing runs between 1 April and 30 June, for the previous year's income. If you have a validated automatic return you may not need to do anything -- but it's always worth confirming that every deductible expense was correctly recorded in e-fatura beforehand.
Related tools
You know the estimate. Now decide what to do with it.
Otterbond helps you plan ahead, whether that's saving a refund or preparing for a payment.
Try it freeEstimate from public Código do IRS rules, not financial, legal or tax advice, and not a substitute for your actual tax return.