How this works
This calculator estimates net pay from your gross monthly salary using the 2026 annual IRS brackets and 11% Social Security. It is the same logic as your year-end tax return — not the month-by-month withholding tables your employer applies (those changed mid-2025 and are linked in the sources). Treat it as your real yearly tax burden, not the exact figure on each monthly payslip.
- 1
Annual salary
We multiply your gross monthly salary by 14 — Portugal pays 12 months plus a holiday and a Christmas bonus.
- 2
Social Security
We take off 11% for Social Security. This comes out before any IRS calculation.
- 3
Taxable income
From the annual gross we subtract the specific deduction for employment income: €4,587.09 in 2026, or the Social Security paid if that is larger.
- 4
IRS via the 2026 brackets
We apply the bracket rate to the taxable income and subtract the deductible portion (the official method in article 68). Married couples use the family quotient: divide by 2, compute, multiply by 2.
- 5
Dependents and net
We subtract €600 per dependent from the tax. Annual net is gross minus Social Security minus IRS; we divide by 14 for the monthly figure.
Frequently asked
Why does this differ from my actual payslip?
Your employer withholds IRS month by month using the withholding tables, which have different steps and changed mid-2025. This calculator uses the annual article-68 brackets — the same maths as your year-end tax return. So it gives your real yearly tax burden, not the exact amount on each payslip. The two reconcile through your IRS refund or top-up.
What are the 14 months?
Most contracts in Portugal pay 12 monthly salaries plus a holiday bonus and a Christmas bonus, each equal to one month. That is 14 payments. If your company spreads the bonuses across 12 months (duodécimos), the annual total is the same — only the timing changes.
What is the difference between one and two earners (married)?
"Married, two earners" means both spouses have income — here we compute yours alone, without the family quotient, as the tables do. "Married, one earner" means only one person earns: the family quotient applies (divide by 2), which usually lowers the tax. Pick your real situation.
Does this include the youth IRS or tax credits?
No. This is a baseline estimate. It excludes the youth IRS, expense-based tax credits (health, education, rent, invoices) and disability cases. If you qualify for those, you will pay less than shown here.
Does it work for the Azores and Madeira?
Yes. The autonomous regions have lower IRS rates and are in the region selector, each with its own 2026 brackets. Social Security (11%) and the specific deduction are the same nationwide.
DISCLAIMER
An estimate for orientation, based on the 2026 annual IRS brackets (article 68) and 11% Social Security. It does not use the monthly withholding tables and excludes the youth IRS, expense-based tax credits and disability cases. It is no substitute for your payslip or tax advice.