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IRS Withholding Tax Calculator

Withholding at source (retenção na fonte) is the IRS your employer deducts from your salary every month, as an advance on the tax settled in the annual return. The amount depends on the gross salary, your tax situation and the number of dependants. Enter these details to see how much is withheld each month, using the official 2026 tables for mainland Portugal.

Use the gross monthly salary. The tax situation picks the official table; 'married, single earner' applies when only one spouse has income.

IRS withheld per month
€168.17
Effective rate of 11.21% on the gross salary
Table appliedTable I
Gross monthly salary€1,500.00
Maximum marginal rate24.1 %
Deduction (parcela a abater)− €193.33
IRS withheld€168.17
Effective withholding rate
11.21 %
IRS withheld divided by the gross salary
Salary after IRS withheld
€1,331.83
Gross salary minus IRS. Not the net pay: Social Security (11%) is still separate.

2026 withholding tables for mainland Portugal, employment income. The withholding is an advance on the IRS, settled in the annual return. It does not cover the pension or disability tables, or the Azores and Madeira.

Educational estimate, not tax or financial advice. It uses the official 2026 withholding tables (mainland). Social Security (11%) is a separate deduction. Check your payslip.

What withholding at source is

Withholding is not a separate tax: it is an advance on your IRS. Instead of paying it all at once the following year, you hand the State part of the tax with each salary. The annual IRS return settles the exact figure: if too much was withheld you get a refund; if too little, you pay the difference.

How the table computes the amount

Since the second half of 2023 withholding uses marginal rates. Each salary bracket has a maximum marginal rate and a deduction (parcela a abater): the withholding is the salary times the rate, minus the deduction, minus an amount per dependant. Salaries up to €920 (or €991 for a married single earner) are exempt from withholding.

Which table is right for you

Your tax situation picks the table, and this is where many people go wrong. Single with no dependants uses Table I; single with dependants uses Table II; married with two earners (both with income) uses Table I; married, single earner (only one has income) uses Table III. Each dependant reduces the withholding by a fixed amount.

What this calculator does not include

It computes employment income for mainland Portugal, using tables I, II and III. It does not cover the disability tables, the pension tables, or the separate tables for the Azores and Madeira. The withholding shown is IRS only: Social Security (11%) is a separate deduction on the payslip. The holiday and Christmas subsídios are withheld separately at the same effective rate. For the full net pay, use the net salary calculator.

Worked example

Take a gross salary of €1,500 a month, single and with no dependants. Under Table I this salary falls in the bracket with a 24.1% marginal rate and a €193.33 deduction: the withholding is €1,500 × 24.1% − €193.33 = €168.17 a month (an effective rate of about 11.2%). With one dependant it would move to Table II and the withholding would drop to €133.88 (€34.29 less for the dependant). Social Security (11%, i.e. €165) is deducted separately.

Frequently asked questions

What is IRS withholding at source?
It is the IRS your employer deducts from your salary every month and hands to the State on your behalf. It works as an advance on the tax: the annual return settles the figure and refunds anything withheld in excess, or charges what was missing.
How much IRS is withheld from my salary?
It depends on the gross salary, your tax situation and dependants. The table applies a marginal rate and subtracts a deduction. For example, on a €1,500 salary, single with no dependants, the withholding is €168.17 a month (about 11.2%). Enter your details to see the figure.
Is the withholding the same as the IRS I pay?
Not exactly. The withholding is a monthly payment on account of the IRS. The IRS actually due is worked out in the annual return, with your deductions and full situation. The gap between what was withheld and what was due produces the refund or the amount to pay.
Which salaries are exempt from withholding?
In 2026 monthly salaries up to €920 (the minimum wage) are exempt from withholding, and up to €991 for a married single earner. That does not mean there is no IRS for the year: it only means there is no monthly advance.
Do dependants reduce the withholding?
Yes. For each dependant the table subtracts a fixed amount from the withholding: €21.43 (married, two earners), €34.29 (single with dependants) or €42.86 (married, single earner). From three dependants there is also a 1 percentage-point cut in the marginal rate.
Does the withholding include Social Security?
No. They are two different deductions on the payslip: withholding at source is the IRS, and the 11% Taxa Social Única is the Social Security contribution. This calculator shows IRS only. To see the net salary with both deductions, use the net salary calculator.

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Author: Thorben Rasmus Idel · Reviewed by: Nahar Geva · Last reviewed: 2026-06-06