Portugal Income Tax Rates 2026: Personal, Capital Gains and Corporate Tax
An overview of Portugal's income tax rules for residents and non-residents, including the current tax bands, investment gains, business taxes and the historical rates for 2018-2019.
Personal income tax (IRS) in Portugal for 2026
Portugal's Imposto sobre o Rendimento das Pessoas Singulares (IRS) is governed by the Personal Income Tax Code (CIRS). Article 68 of CIRS sets the progressive general rates on taxable income. The following mainland brackets apply to income earned in 2026; rates are marginal, not a single rate on all income.
| Annual taxable income | Marginal rate |
|---|---|
| EUR Up to 8,342 | 12.50% |
| EUR 8,342 to 12,587 | 15.70% |
| EUR 12,587 to 17,838 | 21.20% |
| EUR 17,838 to 23,089 | 24.10% |
| EUR 23,089 to 29,397 | 31.10% |
| EUR 29,397 to 43,090 | 34.90% |
| EUR 43,090 to 46,566 | 43.10% |
| EUR 46,566 to 86,634 | 44.60% |
| EUR Above 86,634 | 48.00% |
Taxable income is determined after the applicable category-specific deductions and adjustments. Joint assessment for eligible spouses or de facto partners is addressed in Article 69; the minimum subsistence safeguard is covered by Article 70. Payroll withholding tables are distinct from the annual IRS brackets.
Additional solidarity tax
Under Article 68-A of CIRS, an additional solidarity rate of 2.5% generally applies to taxable income above EUR 80,000 up to EUR 250,000, and 5% to the portion above EUR 250,000.
Income tax for non-residents
Tax residence is generally determined under Article 16 of CIRS, including the 183-day test and the existence of a habitual home in qualifying circumstances. Residents are generally taxable on worldwide income, while non-residents are generally taxed on Portuguese-source income under Articles 15 and 18. Certain Portuguese employment income of non-residents is commonly subject to a 25% rate, but the precise category, exemptions, EU/EEA rules and applicable tax treaty must be checked. Non-resident property gains have separate progressive assessment rules; do not apply the employment rate automatically.
Capital gains tax in Portugal
Article 10 of CIRS defines taxable capital gains, including disposals of securities and real estate. Under Article 72, many net gains from shares and other financial assets are generally subject to a 28% special rate, with mandatory aggregation or exceptions in particular circumstances.
Gains on Portuguese real estate are not universally subject to a flat 28% rate. For many individuals, only 50% of qualifying net real-estate gains is included in taxable income, subject to statutory conditions and special rules. Since 2023, non-resident Portuguese real-estate gains generally follow aggregation rules, with worldwide income relevant to the applicable rate. Exemptions or reinvestment relief may be available for qualifying principal residences.
Corporate income tax (IRC) in 2026
Portugal's Imposto sobre o Rendimento das Pessoas Coletivas (IRC) is regulated by the Corporate Income Tax Code (CIRC). Although the consolidated text of Article 87 displays a future 17% standard rate, transitional provisions in Law 64/2025 make the general mainland rate 19% for tax periods beginning in 2026, 18% for 2027 and 17% from 2028.
| Corporate taxpayer / period | Applicable rate |
|---|---|
| Standard mainland IRC, tax periods starting in 2026 | 19% |
| Qualifying SMEs and Small Mid Caps: first EUR 50,000 of taxable profits in 2026 | 15% |
| Remaining qualifying SME taxable profits | 19% standard rate |
| Qualifying startups meeting additional Article 87(8) requirements | 12.5% on qualifying initial portion |
Regional incentives and rates for Madeira and the Azores, including qualifying inland-area relief, require separate eligibility checks. Corporate income tax may also be increased by municipal and state surtaxes.
Municipal and state surtaxes
The municipal surtax (derrama municipal) can be up to 1.5%, depending on the municipality and available relief. A state surtax (derrama estadual) generally applies to the relevant portions of taxable profit above EUR 1.5 million at 3%, above EUR 7.5 million at 5%, and above EUR 35 million at 9%. The calculation is incremental and specific regional rules may differ. See the official Corporate Income Tax Code.
Historical Portugal income tax rates: 2018-2019
The original article concerned 2018-2019. Its historical mainland 2018 IRS schedule is reproduced below for research purposes only.
| 2018 taxable income (EUR) | Historical rate |
|---|---|
| Up to 7,091 | 14.5% |
| 7,091 to 10,700 | 23% |
| 10,700 to 20,261 | 28.5% |
| 20,261 to 25,000 | 35% |
| 25,000 to 36,856 | 37% |
| 36,856 to 80,640 | 45% |
| Above 80,640 | 48% |
In 2018, the standard mainland corporate rate was 21%, with a 17% reduced rate on the first EUR 15,000 of qualifying SME taxable profits. Certain qualifying inland SMEs were eligible for a 12.5% rate on that portion, and the Azores had a 16.8% regional standard rate. The historical article also recorded a 28% rate on many share gains, a 25% non-resident employment rate, a municipal surtax of up to 1.5%, and state surtax bands of 3%, 5% and 7% above the respective profit thresholds of EUR 1.5 million, EUR 7.5 million and EUR 35 million. These historical rules are not current-rate guidance.
Official legislation and tax guidance
For the latest consolidated rules and official interpretations, consult the Portuguese Tax and Customs Authority, the Personal Income Tax Code, the Corporate Income Tax Code, and official legislative updates.
Last reviewed: 23 October 2026. This article provides general tax information and is not individualized legal or tax advice.