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IRS reduction obliges withholding tax tables to be changed twice in a few monthsPhoto by MinSangGi on Pexels
Politics

IRS reduction obliges withholding tax tables to be changed twice in a few months

CNN Portugal9 September 2026 at 17:21

The IRS reduction announced by the prime minister obliges legislative changes and adjustments to the withholding tax tables. Parliament will need to approve a change to the rates set out in article 68 of the IRS Code, which contains the general tax table with the nine income brackets.

Following this parliamentary approval, an order from the finance minister or the secretary of state for tax affairs will be necessary to set the new withholding tables. Only then can the tax relief be reflected in workers' wages already in November.

The process thus involves two distinct interventions: first the change to the law by parliament and then the publication of a government order that updates the withholding tax tables.

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