Portugal salary calculator methodology (2026)

Employee (trabalhador por conta de outrem)

General private-sector employee; no contribution ceiling for dependents. The calculator reflects State Budget 2026 (Law 73-A/2025), the updated IAS = €537.13 and Continente SMN = €920.

Social security

Rates on gross remuneration: employee 11%, employer 23.75%. Supports 12 or 14 payments (holiday / Christmas subsídios) and the duodécimos mode (none / holiday / christmas / both) which shifts the monthly withholding base per CIRS art. 99.º-F.

Monthly IRS withholding (Continente 2026 tables)

We apply the official 2026 tables I–VII published by the Portuguese Tax Authority (AT):

• Table is chosen from marital status (single / married one holder / married two holders) and taxpayer disability.
• Formula: max(0, coefR · R − subtractConst − depDed · dependents); low bands withhold 0%.
• Disabled dependents yield an extra allowance.
• Madeira / Açores: until regional ingestion we use Continente tables.

Annual IRS (reference)

Category A taxable base: annual gross − specific deduction (CIRS art. 25.º). The 2026 specific deduction is max(8.54 × IAS; mandatory SS contributions) = at least €4,587.09; for higher salaries it is replaced by the actual SS contributions.

IRS 2026 marginal brackets (Law 73-A/2025: thresholds +3.51%, 2nd–5th cut by 0.3 pp):

• up to €8,342 → 12.5%
• €8,342 – €12,587 → 15.7%
• €12,587 – €17,838 → 21.2%
• €17,838 – €23,089 → 24.1%
• €23,089 – €29,397 → 31.1%
• €29,397 – €43,090 → 34.9%
• €43,090 – €46,566 → 43.1%
• €46,566 – €86,634 → 44.6%
• above €86,634 → 48%

Additional solidarity tax (CIRS art. 68.º-A)

Progressive surtax added to IRS over taxable income:

• €80,000 – €250,000 → + 2.5% on the part exceeding €80,000;
• above €250,000 → + 5% on the part exceeding €250,000.

Minimum existence (CIRS art. 70.º)

2026 reference value: max(14 × SMN; 1.5 × 14 × IAS) = €12,880. When taxable income ≤ reference, the annual IRS reference is forced to 0.

IRS Jovem (CIRS art. 12.º-B)

10-year regime with decreasing exemption: year 1: 100%, years 2–4: 75%, years 5–7: 50%, years 8–10: 25%. Annual cap = 55 × IAS = €29,542.15 in 2026. The exempt part is removed from both the monthly withholding base and the annual IRS base.

Net → gross

Binary search over the gross→net function, targeting the average monthly net.

Self-employed (trabalhador independente, Cat. B)

Simplified regime. SS contribution: 21.4% on a monthly base = min(12 × IAS; relevant income / 12). Relevant-income coefficient: 70% services, 20% goods / HORECA.

Withholding at source (CIRS art. 101.º): 23% services, 11.5% goods / HORECA. Waiver (art. 101.º-B) when the taxpayer uses the CIVA art. 53.º VAT exemption and annual revenue < €15,000.

Annual IRS in the simplified regime is computed on taxable income = gross × coefficient (35% services / 20% goods). Minimum existence (€12,880), IRS Jovem (when eligible) and the additional solidarity tax above €80,000 taxable income all apply.