How it works
In short
- In November 2026, IRS withholding on salaries and pensions is half the usual amount.
- The Christmas allowance has its withholding halved too, if it is paid in November.
- With duodécimos, only the share paid in November gets the reduction, because each share is withheld in the month it is paid.
- It applies on the mainland and in the Azores. It does not apply in Madeira, or to anyone in the top bracket of their table.
- In December, withholding goes back to normal, and the final settlement happens on the 2027 IRS return.
How much more you get in November 2026
| Gross salary | Net in a normal month | Net in November | Difference | November with Christmas allowance |
|---|---|---|---|---|
| €1,000.00 | €855.00 | €873.00 | +€18.00 | €1,746.00 |
| €1,500.00 | €1,167.00 | €1,251.00 | +€84.00 | €2,502.00 |
| €2,000.00 | €1,479.00 | €1,630.00 | +€151.00 | €3,260.00 |
| €2,500.00 | €1,754.00 | €1,990.00 | +€236.00 | €3,980.00 |
| €3,000.00 | €2,007.00 | €2,339.00 | +€332.00 | €4,678.00 |
| €4,000.00 | €2,505.00 | €3,033.00 | +€528.00 | €6,066.00 |
Examples for a single person with no dependants on the mainland, paying 11% Social Security and with no meal allowance. In the last column, the Christmas allowance equals one month’s salary and is paid in November.
What changes in IRS withholding in November 2026?
Despacho n.º 12523-A/2026 sets withholding at just 50% of the amount from the 2026 withholding tables on employment and pension income paid from 1 to 30 November 2026; Despacho n.º 12610-A/2026 does the same in the Azores, on the region’s own tables. Parliament authorised the Government to cut the 2026 IRS rates with effect from January, and this lower withholding is a way of bringing that cut into your pay now, without waiting for your IRS return. Social Security does not change: the usual rate is still deducted.
How much more will I get in November 2026 with IRS withholding halved?
In November 2026 you get half of the IRS that would be withheld in a normal month. For example, on a gross salary of €2,000 (single, no dependants), withholding drops from €301 to €150, and your take-home pay goes up by about €151. Use the calculator for your own case.
Who gets IRS withholding halved in November 2026?
Employees and pensioners resident in mainland Portugal and the Azores (in the Azores, on the region’s own tables). Madeira is not covered. Also left out are anyone earning more a month than the upper limit of the second-to-last bracket of their withholding table, in other words anyone in the top bracket (on the mainland, for example, €20,221 for single people or married couples where both earn, and between €18,169 and €18,529 for pensions), and self-employed income (recibos verdes).
Does the halved IRS withholding in November 2026 also apply to the Christmas allowance?
Yes, if the Christmas allowance is paid in November 2026: the withholding on it is halved too. It is withheld separately from your salary, using the same table. If it is paid in December, it is withheld as usual, with no reduction. In the calculator, add it under Income, as Holiday or Christmas subsidy; pensioners can add it as well.
My allowances are paid in duodécimos. Do I also get IRS withholding halved in November 2026?
Only on the share paid in November. The reduction covers what is paid from 1 to 30 November, and each duodécimo is withheld in the month it is paid (article 99.º-C of the IRS Code). So the duodécimo paid with your November 2026 salary has its withholding halved, while those paid in other months were withheld under the normal tables. The relief in November is smaller than for someone who gets the whole Christmas allowance that month. In the calculator, turn on Duodecimal to see your figure.
My Christmas allowance is paid in December, or in duodécimos. Am I worse off with the halved IRS withholding in November 2026?
Not in the tax you finally pay. The reduction only covers what is paid between 1 and 30 November 2026: a Christmas allowance paid in December is withheld as usual, and with duodécimos only the share paid in November has its withholding halved. So in November you take home less than someone who gets the whole allowance that month. But your 2026 IRS is the same: the difference is settled on the 2027 return, as a bigger refund or less tax to pay.
Does halved IRS withholding carry on in December 2026?
No. From 1 December 2026 the usual withholding tables apply again, with no reduction.
What if my employer does not halve my IRS withholding in November 2026?
It can correct it in the following months’ withholdings, up to the end of December 2026 (paragraph 8 of Despacho n.º 12523-A/2026; in the Azores, of Despacho n.º 12610-A/2026). If it doesn’t, whatever was over-withheld is settled when you file your 2027 IRS return.
Will I pay more IRS in 2027 because withholding was halved in November 2026?
Withholding is an advance on your tax. Your final 2026 IRS is worked out on the return you file in 2027, at the 2026 rates, including the cut Parliament authorised. Because less is withheld in November 2026, your refund may be smaller, or the amount you owe larger, than it would have been without this reduction. If you got less relief in November (allowance paid in December or in duodécimos), that settlement works in your favour.
Sources: Despacho n.º 12523-A/2026 (mainland), published on 14 October 2026, and Despacho n.º 12610-A/2026 (Azores), published on 15 October 2026, in the Diário da República.