Portugal Income Tax Calculator

Find out how much your salary is after tax so you can have a better idea of what to expect when planning your budget
Optional Criteria
See values per:
Year Month Biweekly Week Day Hour

CALCULATING

loading indicator

Results

Salary Before Tax0 €

Salary After Tax0 €

Total Tax0 €

Average Tax Rate0 %

€ = Euro

0%
Net Pay
0%
Total Tax
Detailed Breakdown

CALCULATING

loading indicator

Salary Before Tax0 €

Income Tax0 €

Solidarity Rate Tax0 €

Social Security0 €

Total Tax0 €

Salary After Tax0 €

Total Deductions0 €

Average Tax Rate0 %

Summary

Map of Portugal

Enter your salary into the calculator above to find out how taxes in Portugal affect your income. You'll then get your estimated take home pay, a detailed breakdown of your potential tax liability, and a quick summary down here so you can have a better idea of what to expect when planning your budget.

If you make 0 a year living in Portugal, we estimate that you'll be taxed 0. In almost all cases, your employer will automatically withhold this amount from your paychecks and thus your take home pay should be around 0 per year or 0 per month. Lastly, your average tax rate ends up being around 0 %. Note that this estimate is based only on the most common standard deductions and credits, if any. If you are eligible for additional deductions and credits, your taxes may be lower.

An introduction to Portugal

Portugal is located in the south western part of Europe and is bordered by the North Atlantic Ocean and Spain. The territory of Portugal includes not only the mainland on the Iberian Peninsula, but also the autonomous regions of the Azores and Madeira, two archipelagos located in the Atlantic Ocean. The nation spans a total area of over 35,600 square miles (92,200 square kilometers). Portugal has an extensive coastline with the Atlantic Ocean which includes over 585 miles (943 kilometers) on the mainline and over 569 miles (917 kilometers) on its islands. Lisbon is the capital city of Portugal.

Portugal has a rich history of seafaring and discovery. After handing over its last overseas territory, Macau, to the Chinese administration in 1999, it ended a long and sometimes turbulent era as a colonial power. The roots of that era can be traced back to the 15th century when Portuguese explorers such as Vasco da Gama were looking for a way to India. By the 16th century these sailors helped build a huge empire that included Brazil as well as prominent sections of Africa and Asia. Today, there are over 200 million Portuguese speakers around the world.

For almost half of the 20th century Portugal was ruled by Antonio de Oliveira Salazar as a dictatorship. However, this all ended in 1974 when a bloodless and peaceful coup known as the Revolution of the Carnations ushered in a new democracy.

Traditionally, Portugal's economy was reliant on the manufacturing industry. Ever since the country joined the European Union in 1986, Portugal's economy has diversified and become increasingly service based. In 1999, Portugal was one of eleven EU Member States to launch the euro currency. The currency then first started circulating in 2002.

The Portuguese economy was negatively impacted by the global financial and economic crisis that started in 2008 and the European debt crisis in 2009. In partnership with the European Union and the International Monetary Fund, Portugal adopted an economic adjustment program in 2011. Portugal was put on a path to stabilizing the economy, correct domestic economic imbalances and restore growth thanks to the program. The three year program was subsequently ended in May 2014 when Portugal was able to make a clean exit through the efforts made by the PSD-CDS coalition government. Both the work done and achieved outcome were applauded internationally. The economy has posted consecutive quarters of growth since then.

The majority of Portugal's international trade is with the rest of the European Union, which accounts for 75 per cent of Portugal's export market and 78 per cent of its imports. The United States, China, and Brazil are some of the largest trading partners outside of the EU. Machinery and tools are Portugal's main exports, followed by vehicles, other transport material, textile articles, plastics and rubber, base metals and agricultural products.

Today, the tourism sector, as well as the services and technology sectors, play huge roles in the economy. Additionally, Portugal continues to further increase its sources of investment and broaden its export markets.

Life in Portugal

Portugal has a pleasant climate with warm summers and rainy winters. The north eastern part of the country experiences extreme temperatures in the winter and the south eastern part of the country in the summer. There is a milder temperature range in the Madeira and Azores Atlantic archipelagos.

Lisbon and Porto are the two largest cities in Portugal and they offer much to see and do. Outside the cities, Portugal's beauty can be found in all of its astonishing variety. You can go hiking in the granite peaks of Parque Nacional da Peneda-Geras or take in the beautiful scenery of the Beiras. Further from the cities and along the coastlines offer even more to explore. Visit dramatic edge of the world cliffs, surf waves off the coast of dune covered beaches, or explore sandy islands. You'll also find other activities like dolphin watching in the Sado Estuary, boating and kayaking along the Rio Guadiana, and lots of scenic places to walk and bike all across the country.

Portuguese cuisine is well known for things that include freshly baked bread, olives, cheese, red wine, crisp vinho verde, chargrilled fish, cataplana, smoked meats, and other simple yet delicious creations. The richness of Portugal's coastline and fertile countryside can be experienced just by having a meal. You can even find fresh out of the oven pastel de nata, for example, at a well known patisserie in Belem or wander through scenic vineyards sipping wine from the Douro Valley. You can also make reservations for special occasions at Portugal's top dining rooms or shop at the produce filled markets.

Portugal doesn't just offer a lot to see. There's also a lot to do. There are many festivals within the country. You can drink, feast, and dance your way through all-night celebrations such as Lisbon's Festa de Santo Antonio or Porto's Festa de Sao Joao. There are country fairs in the hinterlands, as well as various music festivals along the coast not to mention traditional music like fado in the Alfama. Want to party after work? Join the dance party in Bairro Alto or go to the bars in Porto, Coimbra and Lagos.

What is the income tax rate in Portugal?

The individual income tax rate in Portugal is progressive and ranges from 14.5% to 48% depending on your income.

Portugal Income Tax Brackets and Other Information

The income tax system in Portugal is a progressive tax system. This means that your income is split into multiple brackets where lower brackets are taxed at lower rates and higher brackets are taxed at higher rates. Tax rates for residents range from 14.5% to 48%.

For 2021 tax year

Taxable Income (EUR)Tax Rate
First 7,11214.5%
From 7,112 to 10,73223%
From 10,732 to 20,32228.5%
From 20,322 to 25,07535%
From 25,075 to 36,96737%
From 36,967 to 80,88245%
From 80,882 onwards48%

A standard deduction exists and is valued at the higher of 4,104 € or the total amount of social security contributions. As with many other regions, Portugal also provides a wide range of other tax deductions and tax credits for things like employment expenses, dependents, disabilities, household expenses, health expenses, VAT on various things, donations, education expenses, retirement contributions, and many others. However, these other ones will vary wildly from person to person, so our calculator does not include them.

Non-residents, on the other hand, are not allowed any tax deductions and are subject to a flat income tax rate of 25%.

In addition to the standard income tax system, there also exists a solidarity tax which varies between 2.5% to 5% for individuals earning over a certain amount.

Social Security in Portugal

Social security in Portugal includes family, pension, and unemployment benefits. Contributions are made by both employees and employers. For employees, the contribution rate is 11%.

Resident status and income tax in Portugal

Residents taxpayers are taxed on worldwide income while non-residents are subject to income tax only on Portuguese-sourced income. Note that Portguese-sourced income includes both income from activity carried out within Portugal and foreign income derived from Portuguese companies and permanent establishments.

Individuals are considered residents of Portugal for tax purposes if they either stay a total of at least 183 days within any 12 month period or they maintain a often used residence in Portugal.

Sources:

Quick Facts about Portugal

  • Main Language(s):Portuguese
  • Currency:Euro (€)
  • Capital:Lisbon
  • Total Population:10,298,252
  • Most Populous City:Lisbon
  • Time Zone(s):UTC+0 to -1
    (Summer: UTC+0 to +1)
  • International Phone Code:+351
  • Driving Side:Right
  • Climate:Ranges from temperate to mediterranean

Income Tax Calculator Disclaimer

  • Tax situations vary widely and calculations can get very complex. This income tax calculator only provides an estimate according to the most common scenarios for salary (standard employment income) that comes from an employer. If you are self-employed, your taxes might differ.
  • There may be additional deductions, credits, exemptions, allowances, reliefs, etc depending on many factors. Some factors are about your family such as the number of dependents, children, relatives, parents, etc. Other factors may include mortgage payments, property depreciation, charitible donations, additional voluntary retirement contributions, etc. Whether or not you are handicapped and/or disabled may also sometimes be an additional factor.
  • Depending on region and jurisdiction, salary bonuses may be treated and taxed differently from standard salary. Additionally, some cities may have city specific income tax.
  • This income tax calculator only estimates income tax. It does not consider other taxes like property tax, self-employment tax, capital gains tax, dividend tax, etc.
  • Income tax calculators from other sites may show slightly different numbers due to different deductions/credits being included or they are based on data from a different year.
  • Investomatica is not a tax advisor. While we try our best to stay up to date with changes in tax codes, we make no guarantee our income tax calculator will always be accurate. Generally, we review changes once a year. If you notice a major miscalculation or error with our income tax calculator (most likely caused by a typo somewhere), feel free to direct message us on twitter and let us know. However, if you have specific tax questions, please consult a licensed tax professional.

Investomatica Comment Policy

Discussions are welcome. Please stay on topic and remember to be kind to each other.

Disqus Advertisement Disclaimer

Ads that show up within the disqus comment area below are added in by disqus. Investomatica has no control over those ads and does not benefit from them.