IRS — Imposto sobre o Rendimento das Pessoas Singulares

IRS stands for Imposto sobre o Rendimento das Pessoas Singulares — personal income tax. It is the primary direct tax on individuals in Portugal, covering all eight income categories (A through H). The IRS is progressive, with brackets ranging from 12.5% to 48% in 2026, plus a solidarity surcharge of 2.5–5% on high incomes and a municipal IRS surcharge of up to 1.5%. Special regimes (IFICI, IRS Jovem) can modify the applicable rate. Most taxpayers file an annual return (Modelo 3) between April and June. Tax residents are taxed on worldwide income; non-residents are taxed only on Portuguese-source income, generally at 25% flat.