Prime Minister Luís Montenegro announced a new income tax cut for 2026, which will be the fifth reduction since he took office as head of government. The announcement was made by Montenegro himself, who leads the current Government.
The income tax rate reduction that the Executive will propose to the Assembly of the Republic will cover the first six income brackets. This measure aims to ease the tax burden on lower and middle-income taxpayers.
The impact of this tax cut will be visible starting in November, reflected in both salaries and pensions. Workers and pensioners will feel the effects of the income tax reduction in their monthly income.
With this fifth reduction, Montenegro's Executive continues its strategy of reducing the tax burden throughout its term, seeking to stimulate the economy and increase the disposable income of Portuguese families.
