Social Security
Employees pay 11% of gross pay to Segurança Social, with no ceiling. Your employer pays another 23.75% on top, which does not come out of your salary.
IRS income tax for 2026
| Taxable income, 2026 | Rate |
|---|---|
| Up to €8,342 | 12.5% |
| €8,342 to €12,587 | 15.7% |
| €12,587 to €17,838 | 21.2% |
| €17,838 to €23,089 | 24.1% |
| €23,089 to €29,397 | 31.1% |
| €29,397 to €43,090 | 34.9% |
| €43,090 to €46,566 | 43.1% |
| €46,566 to €86,634 | 44.6% |
| Over €86,634 | 48% |
Taxable income is gross salary minus the specific deduction of €4,587.09 (8.54 times the 2026 IAS of €537.13), or your Social Security contributions if they are higher, which happens from €41,701 a year. Above €80,000 of taxable income a solidarity surcharge of 2.5% applies, and 5% above €250,000.
From the tax we subtract €250 for general family expenses, which almost everyone reaches with invoices carrying their tax number, and €600 for each dependent child, plus €126 for a child aged 3 or under, or €300 for a second or later child aged 6 or under.
The mínimo de existência
Low earners are protected by the mínimo de existência. In 2026 its reference value is €12,880, which is fourteen payments of the €920 minimum wage, so someone on the minimum wage pays no IRS. Above that, the relief shrinks quickly: by 2.6 euros for each euro up to €14,641.67 and by 1.35 euros after that, and it disappears at about €15,900 for a single employee.
A worked example
On €30,000 a year, single, no children: Social Security is 11%, €3,300. That is less than the specific deduction, so taxable income is €30,000 − €4,587.09 = €25,412.91. IRS on that, band by band (12.5% on the first €8,342, then 15.7%, 21.2%, 24.1% and 31.1% on the €2,323.91 above €23,089), is €4,810.65, minus €250 for general expenses, leaving €4,560.65. Take-home pay is €22,139.35 a year: €1,581.38 in each of 14 payments, or €1,844.95 in 12.
What this leaves out
Your employer withholds IRS each month using the official withholding tables, which aim at the same yearly figure; the difference is settled when you file the IRS return the following spring, often as a refund. Deductions for health, education, housing and rent, which can lower the bill further, are not included, nor is IRS Jovem, the partial exemption for workers up to 35 in their first ten years of work, or the regimes for new residents. The meal allowance (subsídio de refeição) that most employers pay is tax-free up to a daily limit and comes on top of the salary.