LumenWhat are Portugal's income tax (IRS) rates for residents?
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Portugal's income tax code sets a progressive scale of nine brackets. In the table set by Lei n.º 73-A/2025, the normal rate starts at 12.5% on taxable income up to €8,342 and reaches 48% on taxable income above €86,634. Income below the top bracket you reach is taxed at lower average rates.
Key facts
| Taxable income (€) | Normal rate (A) | Average rate (B) | Source |
|---|---|---|---|
| Up to 8,342 | 12.50% | 12.500% | Código do IRS, art. 68.1 |
| Over 8,342 up to 12,587 | 15.70% | 13.579% | Código do IRS, art. 68.1 |
| Over 12,587 up to 17,838 | 21.20% | 15.823% | Código do IRS, art. 68.1 |
| Over 17,838 up to 23,089 | 24.10% | 17.705% | Código do IRS, art. 68.1 |
| Over 23,089 up to 29,397 | 31.10% | 20.579% | Código do IRS, art. 68.1 |
| Over 29,397 up to 43,090 | 34.90% | 25.130% | Código do IRS, art. 68.1 |
| Over 43,090 up to 46,566 | 43.10% | 26.472% | Código do IRS, art. 68.1 |
| Over 46,566 up to 86,634 | 44.60% | 34.856% | Código do IRS, art. 68.1 |
| Over 86,634 | 48.00% | – | Código do IRS, art. 68.1 |
Which table this is
The table above is article 68.1 of the IRS code in the wording of Lei n.º 73-A/2025, de 30 de dezembro, as published in the tax authority’s consolidated code. The tax authority’s version history shows the previous wording was in force until December 2025. The amounts are taxable income (rendimento coletável) in euros.
How the brackets work
Article 68.2 splits taxable income into two parts:
- the part up to the upper limit of the highest bracket your income fully covers is taxed at that bracket’s average rate (column B);
- the rest is taxed at the normal rate (column A) of the next bracket up.
Article 68.2 as published applies this split to taxable income above €8,059, a figure that differs from the €8,342 upper limit of the first bracket in the table (wording of art. 68.2 from Lei n.º 45-A/2024, per the tax authority’s text).
Sources
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