Reference
Portugal Income Tax Brackets 2025/2026 (IRS)
Last updated: 2026-05-03
IRS tax brackets (2025 income, filed in 2026)
Portugal uses progressive tax brackets. Only the income within each bracket is taxed at that rate.
| Taxable income | Rate |
|---|---|
| Up to €7,703 | 14.5% |
| €7,703 – €11,623 | 21.0% |
| €11,623 – €16,472 | 26.5% |
| €16,472 – €21,321 | 28.5% |
| €21,321 – €27,146 | 35.0% |
| €27,146 – €39,791 | 37.0% |
| €39,791 – €51,997 | 43.5% |
| €51,997 – €81,199 | 45.0% |
| Above €81,199 | 48.0% |
A solidarity surcharge (taxa adicional de solidariedade) of 2.5% applies to taxable income between €80,000 and €250,000, and 5% above €250,000.
How this applies to solo entrepreneurs
If you're on the simplified regime, your taxable income is not your full revenue. AT applies a coefficient first:
- Services income: 75% of revenue is taxable
- Goods sales: 15% of revenue is taxable
Example: €40,000 in services revenue → €30,000 taxable income → IRS of approximately €6,270 (effective rate ~15.7% of taxable income, or ~15.7% × 75% = ~11.8% of gross revenue).
Use the tax calculator to see your estimated IRS based on your actual income.
Cash-basis timing
On the simplified regime, income is recognized when you receive payment, not when you invoice. A payment received in December 2025 belongs to the 2025 tax year, even if invoiced in November.
Filing deadline
IRS for 2025 income is filed between April 1 and June 30, 2026 through the Portal das Finanças.