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Income tax in Portugal 2026
You pay Portuguese income tax on nine progressive bands running from 12.5% to 48%, and income above €80,000 picks up an extra solidarity charge of 2.5% (5% above €250,000).
Newcomer regimes change the picture completely: qualify for the 20% flat rate under IFICI (the tax incentive for scientific research and innovation), the returning-resident break or the under-35 relief and your effective rate can drop far below the standard scale.
At a glance
- top rate
- 48% above €86,634 (+ solidarity charge on high incomes)
- entry band
- 12.5% on the first €8,342
- tax year basis
- Calendar year
- filing deadline
- 1 April – 30 June online; any balance due by 31 August
- residency basis
- Residents taxed on worldwide income
- regime flag
- IFICI 20% flat rate for qualifying new residents
Rates
Income tax bands for residents (2026, mainland)
| Band (EUR) | Rate on this band | Average rate at top of band |
|---|---|---|
| 0 – 8,342 | 12.5% | 12.5% |
| 8,343 – 12,587 | 15.7% | 13.6% |
| 12,588 – 17,838 | 21.2% | 15.8% |
| 17,839 – 23,089 | 24.1% | 17.7% |
| 23,090 – 29,397 | 31.1% | 20.6% |
| 29,398 – 43,090 | 34.9% | 25.1% |
| 43,091 – 46,566 | 43.1% | 26.5% |
| 46,567 – 86,634 | 44.6% | 34.9% |
| Over 86,634 | 48% | — |
Marginal rates apply within each band.
Thresholds & allowances
- Work deductionThe higher of your mandatory contributions or 8.54× the social support index (IAS)
IAS is €537.13/month in 2026
- Minimum protected income€12,880
Earn below this and you pay no income tax
- No-filing threshold€8,500
Salary or pension income under this, with no withholding taken, means no return to file
Surcharges
- Solidarity charge2.5%over €80,000
- Solidarity charge (upper step)5%over €250,000
Residency
Residency trigger
You become tax resident by spending more than 183 days in Portugal in any 12-month window touching the year, or by keeping a home there in a way that shows you mean to live in it. Portuguese nationals who move to a listed tax haven stay tax resident for the year of the move plus four more.
Non-resident treatment
Non-residents pay tax only on Portuguese income — salaries and pensions from Portugal face a flat 25% taken at source.
Notes
- Couples can choose joint assessment, which splits income in two before applying the bands; the figures on this page describe a single filer.
- Madeira and the Azores set their own bands and rates — the table above is mainland Portugal.
- Self-employed? You make three advance payments (20 July, 20 September, 20 December) adding up to 65% of last year's bill.
- Unexplained jumps in wealth above €100,000 can be taxed at a punitive 60%.
FAQ
What is the top income tax rate in Portugal?
48%, on income above €86,634 — and the solidarity charge adds 2.5% on income over €80,000 and 5% over €250,000, so the true top marginal rate is 53%.
Does Portugal tax worldwide income?
If you live there, yes. Non-residents pay only on Portuguese income, mostly through a flat 25% withholding.
What replaced Portugal's NHR (Non-Habitual Resident) regime?
The IFICI incentive, from 2024: a 20% flat rate on qualifying Portuguese salary or business income plus an exemption on most foreign income (not pensions), lasting 10 years.
When is the Portuguese tax return due?
You file online between 1 April and 30 June for the previous year, and pay any balance by 31 August.
Figures: tax year 2026, compiled from public sources. Not tax advice.