The cut in 2026 IRS rates has been published

The decree-law that reduces the IRS rates of the first six brackets has been published in the Diário da República (the official journal): Decreto-Lei n.º 212/2026, of 4 November 2026. It applies from 1 January 2026 and counts for IRS on 2026 income, which you file in 2027. It was approved by the Council of Ministers on 29/10/2026 and signed into law (promulgated) by the President of the Republic on 2/11/2026.

The new rates are 12.2%, 15.2%, 20.7%, 23.6%, 30.6% and 34.6% (they were 12.5%, 15.7%, 21.2%, 24.1%, 31.1% and 34.9%). The bracket limits and the rates of the last three brackets do not change. The Finanças also announced a 50% cut in November withholding, but only for salaries and pensions, and the published rules do not mention recibos verdes. You do not need to do anything: the cut is built into the 2026 IRS calculation. The Simples IRS recibos verdes tax calculator already uses the new rates.

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Withholding tax on recibos verdes: 23%, 11.5% or exemption

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Official sources

Every figure on this page comes from these sources (official documents, in Portuguese). Updated on 4 November 2026

• Decreto-Lei n.º 212/2026, de 04/11/2026 (Diário da República) (opens in a new window)
• Presidente da República promulga dois diplomas do Governo, 2 de novembro de 2026 (Presidência da República) (opens in a new window)
• Comunicado do Conselho de Ministros de 29 de outubro de 2026 (opens in a new window)
• Lei n.º 64-B/2026, de 22 de outubro (Diário da República) (opens in a new window)
• Circular n.º 5/2026, de 30/10 (Portal das Finanças) (opens in a new window)

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