How this works
IRS Jovem exempts part of the work income (categories A and B) of people up to 35. The exempt slice shrinks over time: it starts at 100% in the first income year and falls to 25% in the tenth. There is always a ceiling — 55 times the IAS, i.e. €29,542.15 in 2026. This calculator applies the percentage for the year you pick, caps it at the legal limit, and estimates the saving using the marginal IRS rate at your income level.
- 1
Pick your benefit year
This is your work-income year (1 to 10), not the calendar year. The percentage follows that number.
- 2
We apply the percentage
100% in year 1; 75% in years 2–4; 50% in years 5–7; 25% in years 8–10. Exempt = income × percentage.
- 3
We cap at 55 × IAS
The exempt slice never exceeds €29,542.15 (2026). What remains is the taxable slice.
- 4
We estimate the saving
Saving ≈ exempt slice × marginal IRS rate at your total income. An approximation, not the final assessment.
Frequently asked
What exemption do I get each year?
The percentage follows your income year, not the calendar year: 100% in year 1, 75% in years 2–4, 50% in years 5–7 and 25% in years 8–10. Ten income years in total, as long as you stay under 36.
What is the 55 × IAS cap?
The exempt slice always has a ceiling: 55 times the IAS. In 2026 the IAS is €537.13, so the cap is €29,542.15. If 100% of your income exceeds that, only the first €29,542.15 is exempt; the rest is taxed normally.
Is the saving this tool shows exact?
It is an estimate. The exempt and taxable slices use the official rule and are reliable. The euro saving depends on your marginal IRS rate, deductions and englobamento — so we apply the bracket rate your income falls into and show which one. The real figure comes from your AT assessment.
Why does exempt income still affect the rate?
The law requires the exempt income to be aggregated (englobamento) to set the general rate on the rest. You pay no tax on the exempt slice, but it pushes the taxable slice into a higher bracket. This calculator uses the marginal rate at your total income, which approximates that effect.
Who is excluded from IRS Jovem?
It cannot be combined with the Non-Habitual Resident (RNH) regime, the new IFICI, or the former-residents regime. It also excludes anyone treated as a dependant in a household, and anyone whose tax situation is not in order. You opt in each year on your IRS return.
DISCLAIMER
Estimate for tax year 2025 (declared in 2026), mainland Portugal. The exempt and taxable slices follow the official rule (Art. 12.º-B CIRS and the 55 × IAS cap). The euro saving is approximate: it depends on your real marginal rate, specific deductions, englobamento and household. It excludes Social Security and regional surtaxes (Azores/Madeira). Not tax advice — confirm on the Portal das Finanças or with an accountant.