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Last Year of Extraordinary IRS Surcharge in Portugal PDF Print

tax_relief_2The sobretaxa extraordinária de IRS (extraordinary IRS surcharge) is an overtax levied at source introduced as an extraordinary measure in 2011 and continuously extended afterwards. It is levied on income earned by dependent workers and pensioners residing in Portugal. It’s a progressive tax, ranging from 0% to 3.5%, applied on taxable income, along with the IRS (ranging from 14.5% to 48%).


The tax is planned to be phased out of payrolls gradually, both by decreasing certain thresholds, as well as increasing the thresholds ranges. It will be entirely removed by December 2017 from all Portuguese payrolls.


See table for current (yearly) sobretaxa extraordinária application:




* Applicable from January 2017, subject to 2 more changes applied from July and December 2017.


2017 Changes Scheme:


    I. The first change applied from January 2017, has provided higher thresholds and canceled the 1,00% range, previous applicable to 2nd class. II. Starting July 1st the 1.75% threshold (3rd class) will also be exempted of sobretaxa extraordinária, reducing it to 0%.

III. Third step will be applied from December 1st the 4th and 5th classes will also be removed.


Taking into consideration the partial pay for 2017 for different categories, the yearly percentage, divided by the total number of months will be in fact lower. The annual average extraordinary IRS surcharges rate will be:

  • 3rd class – 6 months surcharge of 1.75%, estimated annual 0.88%
  • 4th class – 11 months surcharge of 3.00%, estimated annual 2.75%
  • 5th class – 11 months surcharge of 3.50%, estimated annual 3.21%

    See table for current monthly sobretaxa extraordinária per categories of taxpayers:




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