Personal Income Tax Rate Reduction for the First Six Brackets Authorised

Pursuant to the legislative authorisation published in October, Decree-Law No. 212/2026 of 4 November was published today, implementing the reduction of Personal Income Tax (IRS) applicable to income earned in 2026, with effect from 1 January of this year.

Accordingly, the Decree-Law reduces the standard IRS rates for the first six brackets to 12.2%, 15.2%, 20.7%, 23.6%, 30.6% and 34.6%, respectively, and adjusts the corresponding average rates.

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[Photo by: Markus Winkler, available at unsplash.com]