Portugal Income Tax Rates for 2024

Portugal Income Tax Brackets

Portugal has a bracketed income tax system with eight income tax brackets, ranging from a low of 11.08% for those earning under €4,793 to a high of 46.00% for those earning more then €150,000 a year.

How does the Portugal Income Tax compare to the rest of the world?

The maximum income tax rate in Portugal of 46.00% ranks Portugal as one of the ten highest taxed countries in the world. Countries with similar tax brackets include Austria with a maximum tax bracket of 50.00%, Belgium with a maximum tax bracket of 50.00% and United Kingdom with a maximum tax bracket of 50.00%. Keep in mind that our ranking measures only nationwide income taxes, and does not account for local income taxes at state, province, or municipal levels.

Maximum Income Tax	Income Tax Allowance	World Tax Rank
46.00%	€261 ($0 USD)	5th of 34

What is the Portugal Income Tax?

Portugal's personal income tax is a bracketed income tax that must be paid yearly by all citizens to the government of Portugal. Failure to pay, or underpayment of, the Portugal income tax can result in high fees, fines, or jail time.

In addition to Portugal's income tax, other taxes may apply to wages or profits earned, including social services, medical care, and capital gains taxes.

Portugal Income Tax Allowance

Portugal provides most taxpayers with an income tax allowance of €261, which can be kept as a tax-free personal allowance. Portugal's tax credit is a basic wastable tax credit, non-tapered, available to all (single) taxpayers without dependents.

A tax credit is a fixed amount of money that may be kept by taxpayers without paying any income taxes. Generally, a tax credit is subtracted from your gross income before your taxable income is calculated.