The Income tax rates and personal allowances in Portugal are updated annually with new tax tables published for Resident and Non-resident taxpayers. The Tax tables below include the tax rates, thresholds and allowances included in the Portugal Tax Calculator 2022, Portugal Capital Gains Tax Calculator.
Personal Income Tax (PIT) is charged in Portugal using progressive tax tables with seperate tax rates being applied aginst income earned within each bracket. Portugal has three seperate PIT tax tables, one for each of the following three regions: Mainland Portugal, Madeira and Azores, the PIT tax tables for each are shown below.
| Tax Rate | Taxable Income Threshold | ||
|---|---|---|---|
| 14.5% | Income from € 0.000.00 | to | € 7,116.00 |
| 23% | Income from € 7,116.01 | to | € 10,736.00 |
| 26.5% | Income from € 10,736.01 | to | € 15,216.00 |
| 28.5% | Income from € 15,216.01 | to | € 19,696.00 |
| 35% | Income from € 19,696.01 | to | € 25,076.00 |
| 37% | Income from € 25,076.01 | to | € 36,757.00 |
| 43.5% | Income from € 36,757.01 | to | € 48,033.00 |
| 45% | Income from € 48,033.01 | to | € 75,009.00 |
| 48% | Income from € 75,009.01 | and above | |
| Tax Rate | Taxable Income Threshold | ||
|---|---|---|---|
| 25% | Income from € 0.000.00 | to | € 0.00 |
| Tax Rate | Taxable Income Threshold | ||
|---|---|---|---|
| 11.6% | Income from € 0.000.00 | to | € 7,116.00 |
| 20.7% | Income from € 7,116.01 | to | € 10,736.00 |
| 26.5% | Income from € 10,736.01 | to | € 20,322.00 |
| 33.75% | Income from € 20,322.01 | to | € 25,075.00 |
| 35.87% | Income from € 25,075.01 | to | € 36,967.00 |
| 44.95% | Income from € 36,967.01 | to | € 80,882.00 |
| 48% | Income from € 80,882.01 | and above | |
| Tax Rate | Taxable Income Threshold | ||
|---|---|---|---|
| 25% | Income from € 0.000.00 | to | € 0.00 |
| Tax Rate | Taxable Income Threshold | ||
|---|---|---|---|
| 10.5% | Income from € 0.000.00 | to | € 7,116.00 |
| 17.25% | Income from € 7,116.01 | to | € 10,736.00 |
| 21.38% | Income from € 10,736.01 | to | € 20,322.00 |
| 28% | Income from € 20,322.01 | to | € 25,075.00 |
| 29.6% | Income from € 25,075.01 | to | € 36,967.00 |
| 36% | Income from € 36,967.01 | to | € 80,882.00 |
| 38% | Income from € 80,882.01 | and above | |
| Tax Rate | Taxable Income Threshold | ||
|---|---|---|---|
| 25% | Income from € 0.000.00 | to | € 0.00 |
Portugal provides a number of personal allowances, tax credits and tax allowances for individual tax payers, married tax payers and their dependetns. The following list includes the tax credits and allowances integrated into the 2022 Portugal Tax and Salary Calculators
| Rate | Cap | Description |
|---|---|---|
| - | € 600.00 | Resident Dependents Allowance |
| - | € 126.00 | Resident additional Dependents Allowance for children under 3 years of age |
| - | € 450.00 | Resident Forest Saving Plans (Planos de Poupança Florestal) |
| - | € 1,000.00 | Resident Environmental Deductions |
| 15% | € 1,000.00 | Resident Health Expenses |
| 30% | € 800.00 | Resident Education Expenses |
| 20% | n/a | Resident Alimony |
Taxes, including personal income tax, expenses and limitations are reviewed by the Government in Portugal periodically and typically updated each year. Not that not all tax rates and thresholds in Portugal change annually, alterations to tax policy to support strategic economic growth in Portugal mean that the certain areas may be focused on to provide specific tax relief in Portugal or support growth in certain areas (overseas invstment in Portugal for example may mean reduced non-resident income tax rates in Portugal for a period).
When tax policy in Portugal changes, the resultant tax tables also change. Tax tables in Portugal are simply a list of the relevent tax rates, fixed amounts and / or threholds used in the computation of tax in Portugal, the Portugal tax tables also include specific notes and guidance on the validity of scenarios (for example, qualifying criterea for specific tax relief / allowances) and notes of the calculation of phaseout of specific tax elements within each taxation group (dividends and corporation tax thresholds in Portugal for example).
Note that if the capital gains income will be reinvested then the amount of capital gains income subject to taxation in Portugal is reduced by 50% for individuals and 50% for corporations.
| Capital Gains Tax Rate | Applies to: |
|---|---|
| 28% | Resident Individuals |
| 28% | Non-resident Individuals |
| 25% | Resident Corporations |
| 25% | Non-resident Corporations |
Resident Companies in Portugal pay corporation tax at different rates on their global income and income generated in Portugal with rates differing by location.
Non-resident Companies in Portugal only pay corporation tax rates income generated in Portugal with rates differing by location.
Subject Matter Experts (SME's) are entitled to reduced corporation tax payments upto a specific cap.
| Rate / Threshold | Applies to: |
|---|---|
| 21% | Global Income Resident Corporations |
| 20% | Portugal Income Resident Corporations in Mainland Portugal |
| 16.8% | Portugal Income Resident Corporations in Madeira |
| 16.8% | Portugal Income Resident Corporations in Azores |
| 0% | Global Income Non-resident Corporations |
| 20% | Portugal Income Non-resident Corporations in Mainland Portugal |
| 16.8% | Portugal Income Non-resident Corporations in Madeira |
| 16.8% | Portugal Income Non-resident Corporations in Azores |
| 12.5% | Portugal Income SME in Mainland Portugal |
| 13% | Portugal Income SME in Madeira |
| 17% | Portugal Income SME in Azores |
| € 15,000.00 | SME reduced rate threshold in Mainland Portugal |
| € 15,000.00 | SME reduced rate threshold in Madeira |
| € 15,000.00 | SME reduced rate threshold in Azores |
| 21% | Non-commercial entities that are not industrial, or agricultural in nature |
| VAT Rate | VAT Description |
|---|---|
| 23% | Standard - Mainland Portugal |
| 22% | Standard - Madeira |
| 18% | Standard - Azores |
| 13% | Intermediate - Mainland Portugal |
| 12% | Intermediate - Madeira |
| 9% | Intermediate - Azores |
| 6% | Reduced - Mainland Portugal |
| 5% | Reduced - Madeira |
| 4% | Reduced - Azores |
Portugal Tax Tables may also be referred to as Portugal Tax Slabs, Portugal personal allowances and tax thresholds or Portugal business tax rates. They all refer to the tax tables, whether in whole or as specific sections/categories of the tax tables therein. In the section, we publish all 2022 tax rates and thresholds used within the 2022 Portugal Salary Calculator. This means that if you are aware of a 2022 tax exemption or 2022 tax allowance in Portugal that you are entitled too BUT it isn't listed here, that we don't allow for it in this version of the Portugal Salary Calculator. This is simply because we updated our tax calculators based on user feedback, we tailor the Portugal Salary Calculator to suit our users needs. Our aim is to keep tax calculations in Portugal simple, we achieve this my making the Portugal tax calculators relevent to our community's needs, this includes you. So, if you would like a new 2022 tax rates, allowance or threshold adding (or perhaps updating), or if you notice an error in our 2022 tax calculations, simply contact us and we will adjust the tool.
Choose a specific income tax year to see the Portugal income tax rates and personal allowances used in the associated income tax calculator for the same tax year.