Portugal Tax Tables 2022 - Tax Rates and Thresholds in Portugal
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This page contains the tax table information used for the calculation of tax and payroll deductions in Portugal in 2022. These tax tables are used for the tax and payroll calculators published on iCalculator™ PT, these tools are provided for your free use on our website. If you would like additional tax table information added to the tax calculators for Portugal or would like to add to or suggest amendments to the information herein then please contact us.
2022 Tax Tables [Quick Links]
Related Calculators
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.
Portugal Personal Income Tax Tables in 2022
Personal Income Tax (PIT) is charged in Portugal using progressive tax tables with separate tax rates being applied aginst income earned within each bracket. Portugal has three separate 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.
Mainland Portugal Personal Income Tax Rates and Thresholds
Portugal Residents Income Tax Tables in 2022: Mainland Portugal Income Tax Rates and Thresholds (Annual)| 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 |
Portugal Non-Residents Income Tax Tables in 2022: Mainland Portugal Income Tax Rates and Thresholds (Annual)| Tax Rate | Taxable Income Threshold |
|---|
| 25% | Income from € 0.000.00 | to | € 0.00 |
Madeira Personal Income Tax Rates and Thresholds
Portugal Residents Income Tax Tables in 2022: Madeira Income Tax Rates and Thresholds (Annual)| 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 |
Portugal Non-Residents Income Tax Tables in 2022: Madeira Income Tax Rates and Thresholds (Annual)| Tax Rate | Taxable Income Threshold |
|---|
| 25% | Income from € 0.000.00 | to | € 0.00 |
Azores Personal Income Tax Rates and Thresholds
Portugal Residents Income Tax Tables in 2022: Azores Income Tax Rates and Thresholds (Annual)| 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 |
Portugal Non-Residents Income Tax Tables in 2022: Azores Income Tax Rates and Thresholds (Annual)| Tax Rate | Taxable Income Threshold |
|---|
| 25% | Income from € 0.000.00 | to | € 0.00 |
Personal Income Tax Allowances and tax Credits in 2022
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
Portugal Resident Personal Income Tax Allowances and tax Credits in 2022| 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 |
Portugal Social Security Rates in 2022
In Portugal, social security contributions are a critical aspect of the employment and labor system, involving both employees and employers. These contributions fund a range of social welfare programs and benefits. Below is an overview of the different types of social security contributions in Portugal and what each element funds, without specifying the rates.
Portugal Social Security in 2022: Rates for Employers and Employees| Social security category | Employee | Employer | Total |
|---|
| STandard Rate | 11% | 23.75% | 34.75% |
Portugal Social Security in 2022: Earnings Thresholds for Employers and Employees| Social security category | Employee | Employer |
|---|
| Min. | Max. | Min. | Max. |
|---|
| STandard Rate | n/a | n/a | n/a | n/a |
Pension Contributions
Pension contributions are a fundamental part of social security in Portugal. These contributions go towards funding the state pension system, providing retirement benefits to individuals who have contributed throughout their working life.
Unemployment Insurance
Unemployment insurance contributions are another crucial element. These contributions are used to provide financial support to individuals who have lost their jobs and are actively seeking employment. The aim is to offer a safety net during periods of unemployment.
Health Insurance
Health insurance contributions are made to support the public healthcare system in Portugal. This ensures that employees have access to healthcare services, covering a range of medical treatments and interventions.
Work Accident Insurance
Contributions towards work accident insurance provide coverage for employees who suffer accidents or illnesses directly related to their job. This insurance helps cover medical expenses and provides compensation for loss of income due to work-related injuries or illnesses.
Family Allowances
Family allowances are part of social security contributions aimed at supporting families with children. These funds are used to provide financial assistance to families, helping with expenses related to child care and education.
Public Welfare and Other Contributions
There are also contributions targeted towards public welfare initiatives, which include support for the disabled, elderly, and other vulnerable groups in society. These contributions help fund various social programs and services designed to assist those in need.
Compliance and Reporting
Both employers and employees are required to comply with these contribution requirements, and accurate reporting is essential to ensure that the right amounts are contributed towards each social security element. Employers are typically responsible for withholding employee contributions from their salaries and paying these along with their own contributions to the social security system.
Portugal VAT Rates in 2022
VAT rates for Portugal are reviewed annually, you can use the VAT Calculator to calculate VAT due in Portugal or use the Reverse VAT Calculator to calculate the net cost of goods/services after deducting VAT.
Portugal VAT Rates| 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 |
Capital Gains Tax in Portugal in
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.
Portugal Capital Gains Tax Tables in 2022: Capital Gains Tax Rates and Thresholds (Annual)| Capital Gains Tax Rate | Applies to: |
|---|
| 28% | Resident Individuals |
|---|
| 28% | Non-resident Individuals |
|---|
| 25% | Resident Corporations |
|---|
| 25% | Non-resident Corporations |
|---|
Corporation Tax in Portugal in
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.
Portugal Corporation Tax Tables in 2022: CorporationTax Rates and Thresholds (Annual)| 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 |
|---|
Historic Tax Tables supported for Portugal
The following tax tables are supported by iCalculator™ PT as part of the suite of free tax tools we provide for Portugal.