Income Before Tax0 €
Take Home Pay0 €
Total Tax0 €
Average Tax Rate0 %
€ = Euro
Income Before Tax0 €
Income Tax0 €
Solidarity Rate Tax0 €
Social Security0 €
Total Tax0 €
Take Home Pay0 €
Total Deductions0 €
Average Tax Rate0 %
Table of Contents
Enter your employment income into the salary calculator above to estimate how taxes in Portugal may affect your finances. You'll then get your estimated take home pay, an estimated breakdown of your potential tax liability, and a quick summary down here so you can have a better idea of what to possibly 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 differ.
To learn more about Portugal, its income tax, and tax brackets, so that you can get a deeper understanding of how your budget and finances may be affected, scroll down to the detail section below!
Quick Facts about Portugal
- Main Language(s):Portuguese
- Currency:Euro (€)
- 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
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.
Frequently Asked Questions
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 for residents while non-residents are taxed at a flat rate of around 25%. This income tax calculator can help estimate your average income tax rate and your take home pay.
How many income tax brackets are there in Portugal?
The income tax system in Portugal has 9 different tax brackets for residents. For more details, check out our detail section.
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 2022 tax year
|Taxable Income (EUR)||Tax Rate|
|From 7,116 to 10,736||23%|
|From 10,736 to 15,216||26.5%|
|From 15,216 to 19,696||28.5%|
|From 19,696 to 25,076||35%|
|From 25,076 to 36,757||37%|
|From 36,757 to 48,033||43.5%|
|From 48,033 to 75,009||45%|
|From 75,009 onwards||48%|
For married couples, the above progressive rates are separately applied on each half of the total income.
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, they are beyond the scope of our calculator and are not included.
One interesting and somewhat rare tax relief that is worth mentioning is a 50% relief from taxation of employment income or self employment income for applicable returning residents for their first year of new tax residency and for a period of 4 years afterwards. This is meant to encourage the return of emigrants to Portugal. This tax relief was created in 2019 and, as of 2022, has been extended to 2023. Emigrants who return to Portugal and become tax residents while this tax relief policy is in place may be eligible. In order to even be considered eligible, emigrants must not have been tax residents in the previous 3 years, but must have been tax residents before this 3 year period. Additionally, they must have their tax situation regularized and not have previously applied for the special tax regime for non-habitual tax residents. As always, please consult with a tax professional for more details regarding your personal situation.
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.
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Salary Calculator Disclaimer
- While internal calculations are not rounded, all final resultant numbers are rounded normally with numbers ending in 0.5 and above being rounded up.
- Tax situations vary widely and calculations can get very complex. This income tax calculator only provides a rough 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 salary calculator will be accurate. Generally, we review changes once a year. If you notice a major miscalculation or error with our salary 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.
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