New IRS tables: Salaries up to 1,175 euros without deductions in September and October.

Find out the impact of the new IRS tables according to salary values with these simulations.

There are new income tax tables, with special impact on gross salaries up to 1,175 euros. These will be exempt from discounts in September and October. This is because the new withholding tax tables published by the Government for income tax will have a retroactive effect of the lowered tax brackets to be applied in September and October.

According to a post from Notícias ao Minuto, the purpose of this update will be to "compensate the extra tax withheld from taxpayers (employed and pensioners) since the beginning of the year, taking into account the changes to the IRS subsequently approved by Parliament - and which, despite having come into force at the beginning of this month, apply to income for the entire year of 2024".

So, in September and October, many taxpayers will feel a relief in what they pay for IRS, possibly not having to pay any amount.

The reduction applies to the first six income brackets (between 0.25 and 1.5 percentage points), the increase in the specific deduction on income from work and pensions in line with the updating of the Social Support Index (IAS) and the updating of the minimum existence (which corresponds to the minimum income portion net of tax).

Let's look at some simulations from the Ministry of Finance, disclosed by Notícias ao Minuto, which exemplify how much you can save, depending on your salary:

In a couple with a salary of 1,500 euros, the reduction in IRS will be 724 euros  

So, in the case of a couple where both members earn 1,500 euros per month, they will have a total reduction of 724 euros in the withholding tax for IRS between September and December. 

It is worth noting that this simulation takes into account a couple with two dependents, with the new tables applied from September onwards, including a mechanism to compensate for the tax withholdings made in excess between January and August for the months of September and October.

The savings of 724 euros result from the reduction of 320 euros in IRS withholding that the couple will have in September and October, plus a decrease of 28 euros in the amount withheld - considering the amounts paid since the beginning of the year - in the salaries of November, December, and the Christmas bonus.

In a couple with a salary of 1,000 euros, the reduction in IRS will be 202 euros.

In the case of a couple where both earn a salary of 1,000 euros, both holders with two dependents, the reduction in IRS withholding will be 202 euros - 80 euros in September and October and 14 euros in the following months.

And for salaries of 2,000 euros gross with the same family profile, the saving in tax withholding will exceed 1,338 euros (considering the four salaries until the end of the year, plus the Christmas bonus).  

For a retiree with a pension up to 1,000 euros, the reduction in IRS will be 119 euros.

In the case of a pensioner with a pension of up to 1,000 euros gross, the withholding tax will decrease by 58 euros in September and October, and one euro onwards, totaling 119 euros. If you receive 1,500 euros in pension, the withholding will decrease by 397 euros and 2,000 euros in pension, by 647 euros.

Notice that the simulations in question do not include the extra supplement of up to 200 euros that pensioners will receive with lower pensions in October, whose IRS retention is done autonomously.

Looking for a credit intermediary or insurance mediator to help you save on the monthly cost of these products, through an easy and cost-free process? You are in the right website! Contact Poupança no Minuto and start saving: Poupança no Minuto