How is IMT calculated when buying a home in Portugal?

What is IMT?

The Imposto Municipal sobre as Transmissões Onerosas de Imóveis (IMT) is the tax paid once when you buy a property in Portugal³. It is borne by the buyer and must be paid before the deed, without proof of payment, the notary will not complete the contract. The revenue goes to the municipality where the property sits.

This article (and our IMT calculator) explains how the base IMT of a purchase in mainland Portugal is calculated. The special cases (IMT Jovem and the Madeira/Azores tables) are covered below.

How is IMT calculated?

The calculation has two steps¹:

IMT = taxable value × rate − deduction

1. Work out the taxable value, the higher of the deed price and the VPT (see the next section).
2. Apply the rate for the property's use. For housing, the rate is progressive in brackets and a deduction is subtracted; for other buildings it is a flat rate.

You can estimate all of this, with the deduction already applied, in the IMT calculator.

What value is IMT charged on?

IMT is charged on the higher of two values¹:

• the price declared in the deed (the purchase value);
• the taxable value (VPT) of the property, shown on the caderneta predial.

In practice the purchase price is usually above the VPT, so IMT is almost always charged on the price. But note: if the VPT is higher than the deed value, the VPT is the base.

The 2026 IMT brackets (own permanent home)

For an own permanent home in mainland Portugal, the brackets in force in 2026 are (marginal rate and the matching deduction)²:

• Up to €106,346 → 0% (exempt)
• €106,346 to €145,470 → 2%, deduction €2,126.92
• €145,470 to €198,347 → 5%, deduction €6,491.02
• €198,347 to €330,539 → 7%, deduction €10,457.96
• €330,539 to €660,982 → 8%, deduction €13,763.35
• €660,982 to €1,150,853 → 6% (flat rate on the whole value)
• Above €1,150,853 → 7.5% (flat rate)

The bracket limits are updated each year by the State Budget; in 2026 they rose about 2% versus 2025.

What about second homes, land and other property?

The rate depends on the use¹:

• Non-permanent housing (a second home or buy-to-let), its own table, without the exempt bracket: it starts straight at 1% and rises through similar brackets, but with smaller deductions. For the same value, it therefore pays more IMT than an own permanent home.
• Rural buildings (land): a flat 5%.
• Other urban buildings and other onerous acquisitions (plots, commercial): a flat 6.5%.

The exemption and IMT Jovem

There are two ways to pay no (or less) IMT on an own permanent home²:

• General exemption, buying an own permanent home is exempt up to €106,346 in 2026 (the 0% bracket). Above that, only the excess is taxed through the brackets.
• IMT Jovem, buyers up to age 35 purchasing their first own permanent home are exempt up to €330,539 in 2026. Between €330,539 and €660,982, the exemption applies up to the limit and only the excess pays IMT; above €660,982 there is no benefit.

Our calculator applies the general exemption (the 0% bracket). IMT Jovem, which depends on age and being a first home, is not included, check your eligibility.

Worked example

Consider buying a home as an own permanent home for €250,000 (with a lower VPT). The value falls in the 7% bracket:

• IMT = 250,000 × 7% − €10,457.96 = €7,042.04.

If the same home were a second residence, the secondary-housing table would apply (7%, deduction €9,394.50), giving €8,105.50, more, because it has no exempt bracket. Try your case in the IMT calculator.

IMT and IMI: not the same thing

A common mix-up. Both taxes relate to property, but at different moments:

• IMT is paid once, when you buy the property.
• IMI is annual: paid every year while you own it (on 31 December).

After buying, IMI is what you pay each year, see how IMI is calculated.

And Stamp Duty?

Besides IMT, buying a property pays Stamp Duty of 0.8% on the same taxable value³. It is a separate charge from IMT, paid at the same moment. Our calculator estimates IMT only; for the total tax cost of the deed, add the 0.8% Stamp Duty, see what Stamp Duty is and estimate it in the Stamp Duty calculator.

If you are buying with a loan, see also what the mortgage payment would be.