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Government cuts IRS withholding tables by 50% for November

The Government announced a 50% reduction in IRS withholding tables, affecting salaries and pensions in November.

14 October 2026Tagblick Newsdesk

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Archive photo: Government cuts IRS withholding tables by 50% for November — Archive photoPhoto: Sgt. 1st Class Matthew Meadows · Wikimedia Commons · Public domain

The Government of Portugal has decided to implement a 50% reduction in the withholding tables for the Personal Income Tax (IRS). This measure was announced as part of an extraordinary tax decrease approved by Parliament, which alters the rates for the first six brackets by 0.3 to 0.5 percentage points.

The new withholding tables will be applied to salaries and pensions in the month of November, including Christmas bonuses. The measure aims to increase the net income of workers and retirees, who will thus receive a higher amount in terms of net salary compared to what would have been withheld so far.

The decree with the new tables has been published in the Diário da República, reflecting the Government's intention to provide a tax relief to taxpayers during this period. Despite the reduction in withholding, it is indicated that the tables will revert to the previous regime in the following month, December.

With this change, workers and retirees can expect a significant increase in their disposable income for the month of November, as the IRS withholding will be cut in half compared to the amounts applied since the beginning of the year.

In addition to the direct impact on taxpayers' income, this decision is part of a broader set of fiscal measures aimed at balancing personal finances during times of economic pressure. However, the long-term impact of the measure has yet to be detailed.

The reduction in IRS withholding is a response from the Government to a particular economic context and the needs of citizens, and it may influence consumption behavior in the coming weeks.

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