IRS Withholdings in November Cut by 50%

Government anticipates tax reduction on salaries and pensions, including Christmas bonus, with immediate effect.

Generic image of Portuguese government official documents with seals and stamps, on a wooden desk.
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Generic image of Portuguese government official documents with seals and stamps, on a wooden desk.

The Government has decided to reduce IRS withholdings by 50% for employment income and pensions paid in November 2026. The measure also covers the Christmas bonus paid that month.

This decision allows families to immediately benefit from the new tax reduction, anticipating the effect of the IRS cut approved by Parliament, which takes effect from January 1, 2026. Without this measure, the benefit would only be realized in the tax settlement in 2027.
The decree approving the adjustments to the IRS withholding tables for November 2026 has already been published in the Diário da República.
In December, the currently applicable withholding tax tables will be reinstated.
Based on information from the official source: Governo de Portugal - Comunicação (14/10/2026)