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IRS Jovem Calculator: Portugal’s Young-Worker Tax Relief

IRS Jovem exempts part of the income of young people starting their careers from income tax. The percentage depends on the year of the benefit, and there is an annual cap. Enter your annual work income and the year you are in to see how much is exempt from IRS and how much is still taxed.

Use your gross annual work income (category A or B). The “year of the benefit” is how many years you have already used IRS Jovem, not the calendar year.

Income exempt from IRS
€20,000.00
100% in the chosen year · 55 × IAS cap (€29,542.15)
Amount
Work income€20,000.00
Exempt from IRS€20,000.00
Subject to IRS€0.00
Share of income exempt
100%
Income still taxed
€0.00
The exemption across the 10 years
  • Year 1
    100%
  • Year 2
    75%
  • Year 3
    75%
  • Year 4
    75%
  • Year 5
    50%
  • Year 6
    50%
  • Year 7
    50%
  • Year 8
    25%
  • Year 9
    25%
  • Year 10
    25%

Shows the exempt income and what remains subject to IRS. It does not compute the final IRS in euros: the exempt income still counts toward the rate applied to the rest. Use the IRS calculator to estimate the tax.

Educational estimate, not tax advice. The percentages (100/75/50/25%) and the 55 × IAS cap are official for 2026. It does not compute the final tax, eligibility, dependants or the regional tables of the Azores and Madeira. Check your assessment note.

Video: how to use the calculator

The exemption falls over 10 years

IRS Jovem applies for up to 10 years and the exempt percentage steps down: 100% in year 1, 75% in years 2–4, 50% in years 5–7 and 25% in years 8–10. The count starts in the first year you earn work income (category A or B) no longer as a dependant. The years need not be consecutive, but the total benefit never exceeds 10 years.

There is an annual cap: 55 × IAS

The exempt part is capped each year at 55 times the IAS. With the 2026 IAS (€537.13), that cap is €29,542.15. So even in year 1 (100%), no more than €29,542.15 of income is ever exempt. Anything above that is taxed normally. For most salaries the cap does not come into play.

What the calculator shows (and does not)

This calculator shows the income that is exempt and the income that remains subject to IRS in the year you choose. It does not compute the final IRS in euros: under IRS Jovem the exempt income is still counted to set the rate applied to the rest (an exemption “with progressivity”), so the tax due depends on your other income and circumstances. For that detail, use the IRS calculator.

Worked example

Take an annual work income of €20,000 in year 1 of the benefit. The exemption is 100%, below the €29,542.15 cap, so the whole €20,000 is exempt and nothing is left to tax that year. In year 2 (75%), with the same income, €15,000 is exempt and €5,000 is taxed again. On a high income of €45,000 in year 1, a 100% exemption would be €45,000, but the 55 × IAS cap holds it at €29,542.15: the remaining €15,457.85 is taxed.

Frequently asked questions

Who qualifies for IRS Jovem?
Young people up to age 35 (age measured on 31 December of the year) who earn employment income (category A) or self-employment income (category B) and are not claimed as a dependant on someone else’s return. It no longer depends on your level of education.
How much is exempt from IRS each year?
The exempt percentage steps down across the 10 years of the benefit: 100% in year 1, 75% in years 2–4, 50% in years 5–7 and 25% in years 8–10. The exemption applies to category A and B work income.
What is the maximum exemption?
The exempt part is capped each year at 55 times the IAS. With the 2026 IAS (€537.13), the cap is €29,542.15. Income above that is taxed normally, even in the 100% first year.
Does the calculator tell me how much IRS I will pay?
No. It shows the exempt income and the income still subject to IRS in the chosen year. IRS Jovem is an exemption with progressivity: the exempt income still counts to set the rate applied to the rest, so the final tax depends on your other income. To estimate the tax, use the IRS calculator.
Must I use the benefit in 10 consecutive years?
No. The benefit can be used in non-consecutive years, for example if there is a period without work income. What counts is the total number of years you benefit, up to a maximum of 10. The percentage applied matches the benefit year you are in, not the calendar year.
Are the figures exact?
The percentages (100/75/50/25%) and the 55 × IAS cap are official and in force for 2026. The result is an educational estimate of the exempt income; it does not replace your IRS return, nor does it compute the final tax, dependants or the regional tables of the Azores and Madeira. Always check your assessment note.

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Author: Thorben Rasmus Idel · Reviewed by: Nahar Geva · Last reviewed: 2026-06-02