The Portuguese Government is preparing a new decrease in IRS (Personal Income Tax), which may cover up to the sixth IRS bracket. This measure represents a continuation of the tax reduction policy that has been implemented in recent years.
The change is expected to have retroactive effects from January 2026, which means that taxpayers may retrospectively benefit from the tax reduction since the beginning of the year.
Due to this retroactivity, the positive impact may be felt as early as November, when there may be an increase in the net salary of workers covered by the measure.
This fiscal change comes in the context of a government strategy of progressive tax relief, which has been reducing the tax burden on taxpayers, particularly in the middle income brackets.
