Portugal’s president promulgates income-tax reduction affecting first six IRS brackets

Portugal’s personal income tax reform has passed the presidential promulgation stage. President António José Seguro approved parliamentary decree 113/XVII, authorising reductions in the general rates applied to the first six IRS income brackets. The measure envisages cuts of 0.3 to 0.5 percentage points for 2026 income.

Where the law stands

Parliament approved the measure earlier in October. Presidential promulgation is a significant constitutional step, but official publication in the Diário da República and the detailed rules for implementation must still be distinguished.

A reduction from 20% to 19.5%, for example, is a 0.5-percentage-point change, not a universal 0.5% reduction in everyone’s tax bill. Savings depend on taxable income, brackets and deductions.

Will pay packets change immediately?

Promulgation alone does not establish that every employee will see the same increase in their next net salary. Withholding tables, commencement provisions and final annual tax liability are different elements of the system.

Employees and self-employed taxpayers should check the published legal text and updated withholding guidance before estimating their individual benefit. This report is not a personalised tax calculation.