Who wins 1,500 euros will save 84 euros in November with low IRS. See simulations

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Briefings

Portuguese workers will see their net income increase in November due to a 50% reduction in withholding tax rates, with savings ranging from 37 euros for low earners to 698 euros for high earners. The EY simulation for the ECO highlights these figures, though the budgetary proposal for 2027 includes additional tax adjustments. The measure applies only to November and excludes pensioners and those exceeding the highest withholding tax bracket.

Key points

A 50% reduction in withholding tax rates will increase net income for Portuguese workers by approximately 84 euros for a gross salary of 1,500 euros in November.

The EY simulation for the ECO indicates that a single worker with a gross salary of 10,000 euros could save up to 698 euros in November due to the reduced withholding tax.

Context

The Portuguese government announced a reduction in withholding tax rates effective November 1, 2026, to offset rising living costs. This measure applies only to November, with normal rates returning in December. The EY simulation for the ECO provides detailed calculations for various income levels, though the budgetary proposal for 2027 includes additional tax adjustments that may impact future years.

Limitations

The evidence covers only November 2026 withholding tax reductions for Portuguese workers. Pensioners and those exceeding the highest withholding tax bracket are excluded. The 2027 budget proposal includes additional tax adjustments not covered in this evidence. The source is a preprint with uncertainty regarding the final budgetary approval timeline.

Generated by Bittrees-hosted qwen35-2b sha256:aaf42c8b7c3c on 25/10/2026, 06:09:20 UTC. Based on publisher-provided feed evidence; may not cover the full original article. Check the source for details.

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