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PT Tax 2023

Portugal Tax Tables 2023 - Tax Rates and Thresholds in Portugal

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This page contains the tax table information used for the calculation of tax and payroll deductions in Portugal in 2023. These tax tables are used for the tax and payroll calculators published on iCalculator™ PT, these tools are provided for your free use on our website. If you would like additional tax table information added to the tax calculators for Portugal or would like to add to or suggest amendments to the information herein then please contact us.

The Income tax rates and personal allowances in Portugal are updated annually with new tax tables published for Resident and Non-resident taxpayers. The Tax tables below include the tax rates, thresholds and allowances included in the Portugal Tax Calculator 2023, Portugal Capital Gains Tax Calculator.

Portugal Personal Income Tax Tables in 2023

Personal Income Tax (PIT) is charged in Portugal using progressive tax tables with separate tax rates being applied aginst income earned within each bracket. Portugal has three separate PIT tax tables, one for each of the following three regions: Mainland Portugal, Madeira and Azores, the PIT tax tables for each are shown below.

Mainland Portugal Personal Income Tax Rates and Thresholds

Portugal Residents Income Tax Tables in 2023: Mainland Portugal Income Tax Rates and Thresholds (Annual)
Tax RateTaxable Income Threshold
14.5%Income from € 0.000.00to € 7,479.00
23%Income from € 7,479.01 to € 11,284.00
26.5%Income from € 11,284.01 to € 15,992.00
28.5%Income from € 15,992.01 to € 20,700.00
35%Income from € 20,700.01 to € 26,355.00
37%Income from € 26,355.01 to € 38,632.00
43.5%Income from € 38,632.01 to € 50,483.00
45%Income from € 50,483.01 to € 78,834.00
48%Income from € 78,834.01 and above
Portugal Non-Residents Income Tax Tables in 2023: Mainland Portugal Income Tax Rates and Thresholds (Annual)
Tax RateTaxable Income Threshold
25%Income from € 0.000.00to € 0.00

Madeira Personal Income Tax Rates and Thresholds

Portugal Residents Income Tax Tables in 2023: Madeira Income Tax Rates and Thresholds (Annual)
Tax RateTaxable Income Threshold
11.6%Income from € 0.000.00to € 7,479.00
20.7%Income from € 7,479.01 to € 11,284.00
26.5%Income from € 11,284.01 to € 15,992.00
33.75%Income from € 15,992.01 to € 20,700.00
35.87%Income from € 20,700.01 to € 26,355.00
44.95%Income from € 26,355.01 to € 80,882.00
48%Income from € 80,882.01 and above
Portugal Non-Residents Income Tax Tables in 2023: Madeira Income Tax Rates and Thresholds (Annual)
Tax RateTaxable Income Threshold
25%Income from € 0.000.00to € 0.00

Azores Personal Income Tax Rates and Thresholds

Portugal Residents Income Tax Tables in 2023: Azores Income Tax Rates and Thresholds (Annual)
Tax RateTaxable Income Threshold
10.5%Income from € 0.000.00to € 7,479.00
17.25%Income from € 7,479.01 to € 11,284.00
21.38%Income from € 11,284.01 to € 15,992.00
28%Income from € 15,992.01 to € 20,700.00
29.6%Income from € 20,700.01 to € 26,355.00
36%Income from € 26,355.01 to € 80,882.00
38%Income from € 80,882.01 and above
Portugal Non-Residents Income Tax Tables in 2023: Azores Income Tax Rates and Thresholds (Annual)
Tax RateTaxable Income Threshold
25%Income from € 0.000.00to € 0.00

Personal Income Tax Allowances and tax Credits in 2023

Portugal provides a number of personal allowances, tax credits and tax allowances for individual tax payers, married tax payers and their dependetns. The following list includes the tax credits and allowances integrated into the 2023 Portugal Tax and Salary Calculators

Portugal Resident Personal Income Tax Allowances and tax Credits in 2023
RateCapDescription
-€ 600.00Resident Dependents Allowance
-€ 126.00Resident additional Dependents Allowance for children under 3 years of age
-€ 450.00Resident Forest Saving Plans (Planos de Poupança Florestal)
-€ 1,000.00Resident Environmental Deductions
15%€ 1,000.00Resident Health Expenses
30%€ 800.00Resident Education Expenses
20%n/aResident Alimony

Portugal Social Security Rates in 2023

In Portugal, social security contributions are a critical aspect of the employment and labor system, involving both employees and employers. These contributions fund a range of social welfare programs and benefits. Below is an overview of the different types of social security contributions in Portugal and what each element funds, without specifying the rates.

Portugal Social Security in 2023: Rates for Employers and Employees
Social security categoryEmployeeEmployerTotal
STandard Rate11%23.75%34.75%
Portugal Social Security in 2023: Earnings Thresholds for Employers and Employees
Social security categoryEmployeeEmployer
Min.Max.Min.Max.
STandard Raten/an/an/an/a

Pension Contributions

Pension contributions are a fundamental part of social security in Portugal. These contributions go towards funding the state pension system, providing retirement benefits to individuals who have contributed throughout their working life.

Unemployment Insurance

Unemployment insurance contributions are another crucial element. These contributions are used to provide financial support to individuals who have lost their jobs and are actively seeking employment. The aim is to offer a safety net during periods of unemployment.

Health Insurance

Health insurance contributions are made to support the public healthcare system in Portugal. This ensures that employees have access to healthcare services, covering a range of medical treatments and interventions.

Work Accident Insurance

Contributions towards work accident insurance provide coverage for employees who suffer accidents or illnesses directly related to their job. This insurance helps cover medical expenses and provides compensation for loss of income due to work-related injuries or illnesses.

Family Allowances

Family allowances are part of social security contributions aimed at supporting families with children. These funds are used to provide financial assistance to families, helping with expenses related to child care and education.

Public Welfare and Other Contributions

There are also contributions targeted towards public welfare initiatives, which include support for the disabled, elderly, and other vulnerable groups in society. These contributions help fund various social programs and services designed to assist those in need.

Compliance and Reporting

Both employers and employees are required to comply with these contribution requirements, and accurate reporting is essential to ensure that the right amounts are contributed towards each social security element. Employers are typically responsible for withholding employee contributions from their salaries and paying these along with their own contributions to the social security system.

Portugal VAT Rates in 2023

VAT rates for Portugal are reviewed annually, you can use the VAT Calculator to calculate VAT due in Portugal or use the Reverse VAT Calculator to calculate the net cost of goods/services after deducting VAT.

Portugal VAT Rates
VAT RateVAT Description
23%Standard - Mainland Portugal
22%Standard - Madeira
18%Standard - Azores
13%Intermediate - Mainland Portugal
12%Intermediate - Madeira
9%Intermediate - Azores
6%Reduced - Mainland Portugal
5%Reduced - Madeira
4%Reduced - Azores

Capital Gains Tax in Portugal in

Note that if the capital gains income will be reinvested then the amount of capital gains income subject to taxation in Portugal is reduced by 50% for individuals and 50% for corporations.

Portugal Capital Gains Tax Tables in 2023: Capital Gains Tax Rates and Thresholds (Annual)
Capital Gains Tax RateApplies to:
28%Resident Individuals
28%Non-resident Individuals
25%Resident Corporations
25%Non-resident Corporations

Corporation Tax in Portugal in

Resident Companies in Portugal pay corporation tax at different rates on their global income and income generated in Portugal with rates differing by location.

Non-resident Companies in Portugal only pay corporation tax rates income generated in Portugal with rates differing by location.

Subject Matter Experts (SME's) are entitled to reduced corporation tax payments upto a specific cap.

Portugal Corporation Tax Tables in 2023: CorporationTax Rates and Thresholds (Annual)
Rate / ThresholdApplies to:
21%Global Income Resident Corporations
20%Portugal Income Resident Corporations in Mainland Portugal
16.8%Portugal Income Resident Corporations in Madeira
16.8%Portugal Income Resident Corporations in Azores
0%Global Income Non-resident Corporations
20%Portugal Income Non-resident Corporations in Mainland Portugal
16.8%Portugal Income Non-resident Corporations in Madeira
16.8%Portugal Income Non-resident Corporations in Azores
12.5%Portugal Income SME in Mainland Portugal
13%Portugal Income SME in Madeira
17%Portugal Income SME in Azores
€ 15,000.00SME reduced rate threshold in Mainland Portugal
€ 15,000.00SME reduced rate threshold in Madeira
€ 15,000.00SME reduced rate threshold in Azores
21%Non-commercial entities that are not industrial, or agricultural in nature

Historic Tax Tables supported for Portugal

The following tax tables are supported by iCalculator™ PT as part of the suite of free tax tools we provide for Portugal.