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Portuguese Income Tax Calculator for People with Disabilities

With a certified incapacity of 60% or more, Portuguese income tax changes twice: part of your income is never taxed, and a credit cuts the tax itself. See what that is worth a year.

All amounts are annual and gross. Only count dependants and ascendants who themselves have an incapacity of 60% or more.

Annual income tax saving
€2,751.02
Tax due with the regime
€692.04
Income left untaxed (85% is counted)€2,500.00
Standard deduction€4,587.09
Taxable income€17,912.91
Tax under the 2026 brackets€2,840.56
Credit per taxpayer with a disability (4 x IAS)€2,148.52
Tax you would pay without it€3,443.06

The effective tax rate on gross income is 2.77% with the regime and would be 13.77% without it.

The excluded slice would be €3,750.00, but article 56.º-A, n.º 2 limits it to €2,500 per income category. Above €16,666.67 of salary, or €25,000 of pension, this benefit stops growing.

Calculated for mainland Portugal, individual taxation and 2026 income. Left out: category B (that is the self-employed calculator), the other credits any taxpayer has, joint taxation, the solidarity surcharge and the Azores and Madeira tables. Requires a certified incapacity of 60% or more.

Educational estimate, not tax or financial advice. Official values: Portuguese income tax code and tax authority.

Who counts as a person with a disability for tax purposes

Portuguese tax law does not use the everyday sense of disability. Article 87.º, n.º 5 of the income tax code defines a person with a disability as someone with a permanent incapacity of 60% or more. That degree is proven with the atestado médico de incapacidade multiuso, issued by the medical board under Decreto-Lei 202/96 and assessed against the national incapacity table. Without that document neither the 85% rule nor the tax credit applies, however real the condition is. The certificate has to be filed with the tax authority under article 32.º of Decreto-Lei 14/2013, which then applies the regime when it processes the return.

First benefit: part of the income is never taxed

Article 56.º-A provides that gross income is taken into account, for IRS purposes, at only 85% in categories A and B, and at 90% in category H, which is pensions. Note that the reduction bites on the gross income, before the standard deduction. But n.º 2 of the same article sets a limit that almost every write-up omits: the part of the income excluded from tax may not exceed €2,500 per category. In practice the cap starts binding at €16,666.67 of annual employment income, because 15% of that is exactly €2,500. Someone earning €30,000 is not taxed on €25,500, as is often claimed, but on €27,500. For pensions, where the exclusion is 10%, the cap arrives at €25,000.

Second benefit: the article 87.º credit against the tax

The first benefit shrinks the income the rates apply to. The second comes off the tax already computed. Article 87.º deducts 4 times the IAS for each taxpayer with a disability and 2.5 times the IAS for each dependant or ascendant with a disability who lives with them and earns no more than the minimum state pension. Anyone whose permanent invalidity is 90% or more gets a further 4 times the IAS as accompaniment expenses, and a disabled member of the Armed Forces adds another 1 times the IAS. Paragraph 8 states expressly that these amounts are cumulative. To them are added 30% of education and rehabilitation expenses and 25% of life-insurance premiums, although that last item cannot exceed 15% of the tax.

The credit changed, and a lot of published material did not

This is where most published figures go wrong. Article 98.º of Law 55-A/2010 froze the IAS at €475 for the indexations of article 87.º, and for over a decade the credit per taxpayer sat at €1,900. But that freeze carried a condition: it lasted until the IAS reached that figure. The IAS passed €475 in 2023, when it rose to €480.43, and since then the real IAS of the year the income belongs to applies. There is a second source of confusion: the return filed during 2026 concerns 2025 income and therefore the 2025 IAS, that is €2,090. This calculator is stamped to 2026 income, with the IAS at €537.13, which gives €2,148.52 per taxpayer.

Worked example

Take an employee with €25,000 of annual gross income and a 60% incapacity. Since 15% of €25,000 is €3,750, above the cap, the excluded part settles at €2,500: the tax starts from €22,500, not €25,000. Taking off the standard deduction of €4,587.09, taxable income is €17,912.91, which produces a tax of €2,840.56 under the 2026 brackets. Then the article 87.º credit of €2,148.52 applies and the final tax drops to €692.04. Without the regime the same salary would pay €3,443.06. The saving is €2,751.02 a year, and the effective rate falls from 13.77% to 2.77%. Note that the credit can only take the tax down to zero: someone earning €12,000 has a tax of €701.61, uses only that much of the €2,148.52 and does not get the difference back.

Frequently asked questions

What degree of incapacity qualifies for the income tax benefits?
A permanent incapacity of 60% or more, proven by the atestado médico de incapacidade multiuso, as article 87.º, n.º 5 of the income tax code defines it. Below 60% none of these benefits are available. From 90% upwards a further accompaniment credit is added.
How much is the disability tax credit in Portugal in 2026?
It is 4 times the IAS per taxpayer with a disability, that is €2,148.52 for 2026 income, where the IAS is €537.13. For each dependant or ascendant with a disability it is 2.5 times the IAS, or €1,342.83. Watch the year: the return filed during 2026 concerns 2025 income and uses that year’s IAS, which gives €2,090 per taxpayer.
Why do many sites still say the credit is €1,900?
Because article 98.º of Law 55-A/2010 froze the IAS at €475 for the purposes of article 87.º, and 4 times €475 is exactly €1,900. That freeze lasted only until the IAS reached that figure, which happened in 2023. Since then the real IAS of the year applies, so €1,900 is out of date.
Does the 15% exemption apply to my whole salary?
No. The 15% is the starting point, but article 56.º-A, n.º 2 limits the part of the income excluded from tax to €2,500 per category. Since 15% of €16,666.67 is exactly €2,500, above that income the benefit stops growing and stays at €2,500. For pensions, where the exclusion is 10%, the same happens from €25,000.
Does this credit count towards the global deduction ceiling?
It does not. The global ceiling of article 78.º, n.º 7, which squeezes health, education, care-home and maintenance expenses, covers only points c) to h), k) and m) of n.º 1. The disability credit is point i), which is not on that list, so the ceiling never trims it. The only thing that limits it is the tax itself.
Do I get money back if the credit is bigger than the tax?
No. Article 78.º, n.º 3 of the income tax code gives a right to a refund of the excess only to withholdings and payments on account. Credits against the tax, including the disability one, reduce the tax to zero and any remainder is lost. That can happen on low incomes, where the tax is below €2,148.52.
What if my incapacity is 90% or more?
A further credit of 4 times the IAS applies as accompaniment expenses, another €2,148.52 in 2026, for each taxpayer or dependant in that situation. Article 87.º, n.º 8 confirms it adds to the base credit rather than replacing it. The degree of invalidity has to be certified by the competent body.
What else does the atestado multiusos give besides income tax?
With 60% or more you can access exemption or reduction of vehicle tax (ISV) and road tax (IUC), reduced VAT on buying and adapting a vehicle, and social support such as the prestação social para a inclusão. Each has its own conditions and its own application, which the article linked to this calculator explains.

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Author: Thorben Rasmus Idel · Reviewed by: Nahar Geva · Last reviewed: 2026-08-08