The new tables reflect the reduction in IRS and guarantee tax exemption up to €920.

Companies, public services, local authorities, IPSS (Private Social Solidarity Institutions) and other employers will have to process this year’s salaries in accordance with the new tables, defined in an order by the Secretary of State for Tax Affairs, Cláudia Reis Duarte.

The new rates used to calculate the amount to be deducted each month from salaries and pensions are lower than those in force at the end of 2025, in November and December, reflecting the effect of three measures: the reduction in rates from the 2nd to the 5th brackets, the 3.51% update of the values defining the 9 income brackets, and the increase in the minimum subsistence level to €12,880, that is, the mechanism that guarantees total or partial exemption from personal income tax for those on lower salaries.

To ensure that workers earning the minimum wage are not taxed on income tax, the tables safeguard that the withholding rate is 0% up to €920 gross per month, in line with the new minimum wage.

Pensions up to €920 will also not be subject to income tax withholding.

Correction of amounts

If companies and other paying entities do not apply the new tables this January, they will have to correct the amounts in February. Although the Government’s order does not mention this, it is what results from the general rules of the Income Tax Code. When a paying entity finds an error in the amount withheld, it must rectify it in the next withholding or in subsequent withholdings if the excess amount cannot be rectified in a single withholding.

With the new tables, a worker with a gross monthly salary of €1,000, who is single and has no children, will pay €35 in income tax per month, when until now they paid €56, according to calculations by Lusa.

A single worker with no children earning €1,200 gross per month will pay €96 in income tax every month, €11 less than before (€107 per month). If they have one child, they will pay €61, and if they have two children, they will pay €27, also below the latest amounts withheld in 2025.

If a worker with a gross salary of €1,200 is married to someone who also earns an income, and if they have no children, they will pay €96 in income tax, the same as a single person with no children. If they have one child, they will pay €74 in income tax, and if they have two children, €53.

In another example, with a salary of €1,600, the relief is €13. A single worker with no children will now pay €192 per month in income tax, when until now they paid €205. If they have one child, the tax withheld drops to €170, and if they have two children, it drops to €149.

Those who earn €2,500, if single and without children, will now pay €471 in income tax instead of €492, representing a monthly reduction of €21. If they are married with one child, they will pay €449, and if they have two children, they will pay €428.

For a higher salary of €3,500, the monthly reduction is €22 for a single person with no children, who will now pay €857 instead of €879. If they are married with one child, they will pay €836, and if they have two children, they will pay €814.

The percentage of income tax to be withheld varies from taxpayer to taxpayer, depending on their personal and family situation. The final amount depends not only on the level of remuneration, but also on whether a taxpayer is single or married, how many children they have and whether the person they are married to also earns an income or not.

The withholding is also different if the taxpayer is a person with a disability. In the case of pensioners, there is also a lower withholding if the pensioner is a disabled member of the Armed Forces.