IRS cut from November: lower withholding on salaries, pensions and the Christmas bonus
The Prime Minister announced on 9 September a further IRS cut for 2026: lower rates in the first six brackets — up to about €43,000 of taxable income a year — worth €400 million and reaching around two million households. It will be felt from November through lower monthly withholding on salaries and pensions, including the Christmas bonus. People in the higher brackets also pay slightly less, because the tax is progressive and the lower slices of their income are taxed at the reduced rates. The per-bracket rates have not been published yet and the measure still needs formal approval; withholding tables will change again in January 2027 with the annual update of the brackets.
Why it matters for your move
Nothing to apply for — if you earn a salary or pension in Portugal, your net pay should rise from November, including on the Christmas bonus.
This is Re-locant.com’s own brief, written to explain what the update means for people moving to or living in Portugal. For the full original report, see the source below.