- Context and Objectives
The SEAF Order of 5 January 2026 updates the withholding tables applicable to employment income and pensions for 2026. These changes result from the approval of the State Budget for 2026, which introduced adjustments to PIT tax brackets and increased the minimum subsistence threshold to €12,880, as well as raising the guaranteed monthly minimum wage to €920.
The main objective of the new tables is to ensure that monthly PIT withholding is more closely aligned with the tax ultimately due upon annual assessment, thereby reducing situations of excessive or regressive withholding.
- Key Changes to the Tables
The main changes include:
- Exemption or reduced withholding up to €920 per month, ensuring that workers earning the national minimum wage or receiving equivalent pensions are exempt from withholding.
- Updating income brackets in line with inflation and the increased minimum subsistence threshold.
- Reduction of rates across several intermediate brackets, directly benefiting middle-income earners.
- Introduction of specific tables for taxpayers with disabilities, pensioners and different family situations.
- Impact on Employees and Pensioners
As a result of these changes:
- taxpayers earning up to €920 per month will not be subject to PIT withholding.
- withholding rates applied to subsequent brackets have been adjusted, reducing the monthly tax withheld.
- higher income levels remain subject to proportional withholding, but within brackets adjusted to updated economic conditions.
The tables also include specific adjustments for dependants and taxpayers with disabilities, in accordance with the requirements of the PIT Code.
The tables can be consulted under: Tabelas de Retenção do IRS, by selecting the year 2026.
Conclusion
The new PIT withholding tables for 2026 represent a significant step towards a fairer monthly withholding system that is better aligned with the economic reality of Portuguese taxpayers. Updating tax brackets, increasing the minimum subsistence threshold and protecting the national minimum wage help reduce the monthly tax burden on low and middle incomes.
How Nominaurea Can Help
Nominaurea can support your business by:
✔ implementing these new tables in payroll processing;
✔ configuring certified human resources and payroll systems;
✔ ensuring accurate calculation of monthly withholdings, including situations involving dependants or taxpayers with disabilities;
✔ providing training to internal teams on tax updates and legal obligations.
Contact us to support you with these and other tax and labour matters with accuracy and up-to-date expertise.
Nominaurea is composed of a team of certified accountants, tax consultants and human resources technicians, specialized in the Iberian context. Our consultants provide rigorous and comprehensive technical support aligned with the tax realities of Portugal and Spain. With offices in Lisbon and Porto, Nominaurea ensures proximity, expertise and an integrated service in the areas of accounting, taxation and human resources management.
