Portugal – Income Tax Rate and Meal Voucher Rate Change
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The Portuguese Tributary and Customs Authority has published new withholding tax tables for the “Azores”, “Mainland” and “Madeira” regions, effective 1 January 2025 to 31 December 2025.
Each region has 11 tax tables, including 4 for pensioners. The tax tables are applicable based on the employee’s personal circumstances.
Table I: Not married without dependents or married with two dependents (Continente region).
| Monthly Remuneration (EUR) | Tax Rate (%) | Abatement (EUR) | Dependent Relief (EUR) |
|---|---|---|---|
| 0 – 870 | 0 | 0 | 0 |
| 871 - 992 | 13 | 13% * 2.6 * (1,208.32 – R) | 21.43 |
| 993 - 1070 | 16.50 | 16.50% * 1.35 * (1,477.67 – R) | 21.43 |
| 1071 - 1136 | 16.50 | 90.81 | 21.43 |
| 1137- 1187 | 22 | 153.29 | 21.43 |
| 1188 - 1787 | 25 | 188.90 | 21.43 |
| 1788 - 2078 | 32 | 313.99 | 21.43 |
| 2079 - 2432 | 35.50 | 386.72 | 21.43 |
| 2433 - 3233 | 38.72 | 465.03 | 21.43 |
| 3234 - 5547 | 40.05 | 508.03 | 21.43 |
| 5548 - 20221 | 44.95 | 779.83 | 21.43 |
| Above 20221 | 47.17 | 1228.74 | 21.43 |
Further details & other amended tables for 2025 can be found on the Tributary and Customs Authority website.
Additionally, the legal limit for meal subsidy paid through vouchers has increased from 60% to 70%.
Corresponding value adjustment: from €9.60 to €10.20 (cash limit remains €6).
Please contact your Mercans’ services delivery team for any additional information regarding the implications of the above change.
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Portugal – Income Tax Rate and Meal Voucher Rate Change – 1 January 20251.65 MB