Reference
Portugal Income Tax Brackets 2025/2026 (IRS)
Last updated: 2026-07-01
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 €8,059 | 12.5% |
| €8,059 – €12,160 | 16% |
| €12,160 – €17,233 | 21.5% |
| €17,233 – €22,306 | 24.4% |
| €22,306 – €28,400 | 31.4% |
| €28,400 – €41,629 | 34.9% |
| €41,629 – €44,987 | 43.1% |
| €44,987 – €83,696 | 44.6% |
| Above €83,696 | 48% |
A solidarity surcharge (taxa adicional de solidariedade) of 2.5% applies to taxable income between €80,000.00 and €250,000.00, and 5% above €250,000.00.
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 €6,464 (effective rate ~21.5% of taxable income, or ~16.2% 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.