Standard IRS

Standard IRS is the default income tax regime for all Portuguese tax residents who do not qualify for or elect a special regime (IFICI, IRS Jovem, or hold NHR Legacy status). It applies progressive brackets ranging from 12.5% to 48% (2026 rates) to aggregated taxable income, after deducting the personal allowance and applicable credits (health, education, PPR, rent, etc.). Married couples filing jointly benefit from income splitting (quotient conjugal). Standard IRS is often the best option for: lower-income taxpayers (below roughly €30,000 where effective rates are low), taxpayers with large deductions, and those with income structures not suited to special regimes.