How much will you save by lowering the IRS who earns $1,000? And who gets more?

A information released on the Government Portal while the Prime Minister spoke to the country tonight from the official residence in S. Bento (Lisboa), allows to measure the result of the reduction of the IRS in relation to the current rates.

With the new IRS rates, an employed person, single and childless, living in mainland Portugal and having a 1,000 gross per month will save another 12.10 euros this year.

In the same family situation, a worker with a gross salary of EUR 1,500 will have savings annual additional eur 65,32.

In the case of a worker receiving per month eur 2,000 gross, the additional relief shall be eur 100,44.

In a gross wage of eur 2,500, the decrease is eur 133,28.

In a gross remuneration of EUR 3,500, the cut in the IRS is EUR 171,50.

According to the same simulations, a pensioner who is the sole holder of income and who has gross retirement with the same values will have reductions equal to those estimated by the government for single workers without children.

In a couple with two children and where both parents are dependent workers, the impact is different from that projected for single workers and pensioners, given the specificities of the household.

Simulating a situation where the two parents have equal income, of EUR 1,000 gross per month, and where the IRS statement is made together, the changes proposed by the government do not change the tax situation, because taxpayers no longer pay IRS.

For this universe, “the collection of IRS resulting from the application of the State Budget fees for 2026 was already equal to zero,” explains the executive in the document released on its website.

In a couple where one earns eur 1,500 per month and another receives eur 1,300, the decrease will be eur 116,64 compared to the current level of taxation.

If a member of the couple receive 2,500 euros gross and the other earn 1,500 euros, the additional annual relief will be 200,88 euros.

If the gross wage of one is EUR 3,700 and the other is EUR 2,000, the additional cut in the annual IRS will be EUR 292,62.

Assuming that one of the elements of the couple earns 5,000 euros and the other earns 3,000 euros, the decrease compared to the current IRS will be 343,66 euros.

Government simulations assume that the IRS rates will fall from 0.3 to 0.5 points to 6th income step, according to the bill proposed by the executive in parliament.

The legislative initiative was adopted today at the meeting of the Council of Ministers.

According to the information published in the Government Portal, the rate of the 1st step falls by 0.3 percentage points, from 2nd to 5th the rates fall by 0.5 percentage points, while in the 6th step there is a reduction of 0.3 percentage points.

The rate of first step it goes from 12.50% to 12.20%.

The 2nd step down from the current 15.70% to 15.20%.

The 3rd low from 21.20% to 20.20%.

No 4th step there is a degravation from 24.1% to 23.60%.

The rate of 5th share of yield it goes from 31.10% to 30.60%.

No 6th step, the rate drops from 34.90% to 34.60%.

On the steps following, the rates remain the same: 43.10% in the 7th, 44.60% in the 8th and 48.0% in the 9th.

Despite no reduction in the rates of 7, 8 and 9 levels, taxpayers in these income bands will also benefit because the IRS is calculated progressively.

The income of a taxpayer is sliced by step, each applying the respective rate provided for in the table that the government is proposing to change, which means that the new rates from 1st to 6th step will apply to those taxpayers when the tax divides their income. On the first steps, from 1st to 6th, the new rates apply and from 7th to 9th those that have known each other so far.

In a statement to the country in the official residence hours after the Council of Ministers, without the right to journalists' questions, the Prime Minister confirmed that the reduction will be reflected in the retentions at the November source and the Christmas allowance.