Madeira Income Tax Calculator — 2026

Amounts you enter are per Annual gross salary Region

Other regions with their own page: Azores

Dependent children Children who live with you and have little or no income of their own. Of those, children under 4 Dependent parents or grandparents living with you How you are taxed

General IRS scale — The default progressive scale — how you are taxed unless you qualify for and choose a special regime.
IRS Jovem — partial exemption for young taxpayers — You are 35 or under and within your first 10 years of earning employment or self-employment income (closed to anyone who has used NHR or IFICI).
IFICI — tax incentive for scientific research and innovation — You have just become a Portuguese tax resident (not resident in the five preceding years, never on NHR) and work in a qualifying research or innovation activity.

Year in the regime The exempt share of your income falls as the years in the regime pass.

Take-home pay €36,495 ≈ €3,041 a month · effective rate 27.0%

Gross salary	€50,000
Social security — Segurança Social (employee)	-€5,500	11.00%
Income tax	-€8,005	Taxable base €44,500
Take-home pay	€36,495	Effective rate 27.0%

Which regime is mine?

Each regime below is checked against the amounts and activity you entered in the form. The conditions the calculator cannot see — how long you have been in the country, what you did before — you confirm yourself.

General IRS scale — The default progressive scale — how you are taxed unless you qualify for and choose a special regime.

Fits what you entered in the form.

Take-home pay: €36,495

IRS Jovem — partial exemption for young taxpayers — You are 35 or under and within your first 10 years of earning employment or self-employment income (closed to anyone who has used NHR or IFICI).

Fits what you entered in the form.

Available for 10 tax years in total
Aged 35 or under on 31 December of the tax year, not counted as a dependant in someone else's household, earning employment (category A) or self-employment (category B) income, and within the first 10 years of earning such income. The option is exercised in the annual return, year by year. Closed to anyone who benefits or has benefited from the NHR regime or from IFICI, who has opted for the former-residents regime of art. 12.º-A CIRS, or whose tax situation is not in order.

Take-home pay: €41,809 IRS Jovem calculator

IFICI — tax incentive for scientific research and innovation — You have just become a Portuguese tax resident (not resident in the five preceding years, never on NHR) and work in a qualifying research or innovation activity.

Fits what you entered in the form.

Available for 10 tax years in total
Not a Portuguese tax resident in any of the five preceding years, never an NHR beneficiary, and working in a qualifying research or innovation activity at an eligible entity listed in Portaria 352/2024/1; registration by 15 January of the year after becoming resident

Take-home pay: €35,600 IFICI calculator

Ticking a box is your own confirmation, not advice — the conditions come from the same verified sources as the rates.

Madeira against the other regions we model

Take-home pay on the same salary, 2026 rules, no special regimes — only the region changes:

Region	€30,000	€50,000	€90,000
Mainland Portugal (Continente)	€21,889	€33,064	€52,814
Azores	€23,333	€36,495	€61,000
Madeira	€23,332	€36,495	€61,000

Compare with another country:Spain

Madeira does not discount the national scale. It swaps it out.

If you arrived here from our Spain pages, drop that mental model at the door. A Spanish region adds its own half of the scale on top of the state half. Madeira’s regional budget prints a complete nine-bracket table of its own and applies it in place of the national one, “em substituição” in the decree’s own words. Same bracket limits as the mainland, same method, a different rate on every single line.

The size of the swap: the mainland scale opens at 12.5% and ends at 48% above €86,634. Madeira’s opens at 8.75% and ends at 33.6% over the same threshold. Mid-scale, the bracket from €29,397 to €43,090 carries 24.43% against the mainland’s 34.9%. Every regional rate is exactly seventy per cent of the national rate beside it: the deepest cut the framework law on regional finances allows, taken on every bracket.

The method survives the swap intact. Portugal does not tax slice by slice, and neither does Madeira: taxable income above €8,342 is split in two, the part equal to the largest bracket ceiling that fits inside it taxed at the average rate printed in column B for that bracket, the excess at the column-A rate of the bracket above. The regional decree restates that rule word for word and prints its own column B, worked from Madeira’s own rates.

That printed column is data, not arithmetic you can shortcut: in the fifth bracket the law says 14.406 where seventy per cent of the mainland’s printed column would give 14.405. A rounding hair, but the calculator applies the printed figure, because that is what the assessment will use.

What stays at the national rate

The solidarity surcharge does not shrink. 2.5% on taxable income above €80,000 and 5% above €250,000 apply in Funchal exactly as in Lisbon: the regional decree replaces the general table and expressly keeps every other IRS rate national until a regional law reduces it, which for the surcharge has never happened. On a big salary the scale saving is still enormous, the top slice paying 33.6% instead of 48%, but the surcharge rides on top of both at full strength. Budget for it.

Everything else on a payslip is national law too: social security at 11%, the specific deduction, the fixed family credits, IRS Jovem, IFICI. The Portugal salary page walks through those mechanics; they land on the island unchanged.

Who gets the regional table

Being a Portuguese tax resident comes first. On top of that, you are a Madeira resident for a tax year when you spend more than 183 days of it in the region, your habitual residence is there and you are registered there for tax. When the day count settles nothing, the fallback is where your principal centre of interests sits. The test is built on where you live; where your employer or your clients sit plays no part in it.

A worked example

Take €40,000 gross in Funchal, single, no dependants. Employee social security takes €4,400, the specific deduction is €4,587.09 (the fixed floor still beats the contributions at this salary), and the taxable base lands on €35,412.91. The Madeira table splits that base at the €29,397 ceiling, charges the printed average rate on that part and the next bracket’s rate on the €6,015.91 excess: IRS of about €5,705, roughly 14.3% of gross, with about €29,895 reaching your account over the year.

Run the identical base through the mainland table and the tax is about €8,149. Same salary, same deductions, same two-part method; the table is the whole difference, and at this income it is worth about €2,445 a year.

The floor we cannot model yet

The regional tax office says the mínimo de existência, the abatement that keeps low salaries out of IRS, is reinforced in Madeira so that the regional minimum wage, higher than the mainland one, stays fully exempt. We went looking for the rule and did not find it: the entire regional budget decree contains no such provision, so whatever makes it work happens somewhere we cannot cite. We do not model law we cannot read. The calculator therefore applies the national abatement, which overstates the tax of low earners on the island. The error runs one way, in your favour, and this page changes the day the mechanism surfaces in a citable norm.

What changed in 2026

This is the first year the discount runs at full depth everywhere on the scale.

Through 2025 the differential faded as you climbed: 30% off the lower brackets, 15% in the middle, 9% at the very top. For 2026 the regional budget takes the full 30% on all nine brackets, which is why the gap against the mainland is wider than it has ever been, and why any comparison you read a year ago undersells it.

Bracket limits were indexed 3.51% for 2026, in step with the mainland, so the two tables still align threshold for threshold and the entire difference sits in the rates.

The same budget also sketches a Madeira-specific extension of IFICI for new residents in highly qualified professions, effective from 2026 on paper but waiting on an implementing regional regulation. Until that regulation exists there is nothing concrete to apply, so the calculator does not.

Questions people actually ask

Is the Madeira rate a discount added to the national scale?

No, and this is the part people carry over wrongly from other countries. Madeira does not add or subtract anything from the national computation: its budget law prints a complete rate table of its own and applies it in place of the national one. The bracket limits match the mainland exactly and the two-part method of computing the tax is restated word for word, so the machine is identical; only the rates differ, on every bracket. If you know how Spanish regions do it, half a scale stacked on the state half, unlearn that here. There is one Portuguese scale per territory, and Madeira has its own.

Who qualifies as a Madeira resident for tax purposes?

First you have to be a Portuguese tax resident at all. You are then a Madeira resident for the year when you spend more than half of it in the region, keep your habitual residence there and are registered there with the tax authority. If the day count decides nothing, the law falls back on where your principal centre of interests lies. The test is built entirely on where you live: your employer's address, your clients and where the money comes from play no part in it.

Does the solidarity surcharge go down in Madeira as well?

No. The regional law replaces the general rate table and expressly leaves every other IRS rate at the national level until a regional decree reduces it, which for the surcharge has never happened. A high earner in Funchal pays the same solidarity surcharge as one in Lisbon, on top of a much lighter scale. The saving from the table itself is untouched; just do not expect the surcharge to shrink with it.

Do IRS Jovem and IFICI still work on the island?

Yes. Both are national law and arrive in Madeira unchanged, as do the specific deduction, social security and the fixed family credits. The regional scale changes the rate table those mechanics feed into, nothing else. The regional budget has also announced its own extension of IFICI for new residents in highly qualified professions, but it still needs an implementing regulation, so no calculator can honestly apply it yet.

Why does the withholding on my Funchal payslip not match this page?

Because withholding is a separate instrument, and in Madeira it is even more separate than usual: the region publishes its own monthly retention tables, approved by the regional finance secretary, distinct from both the mainland tables and the annual scale on this page. They exist to approximate your bill in instalments. This page computes the annual tax itself, and the annual return settles whatever difference the tables left.

What this calculator does not model

Every rule below is real and is left out on purpose — modelling it would need information this form does not ask you for, or a mechanism we have not built yet. What matters is not that something is missing, but which way it moves your number, so that is what we tell you.

Your real tax may be LOWER — Tax credits for documented expenses — health, education, rent, and the general family expenses credit — are not modelled, and neither is the income-dependent cap on them. The tax shown is therefore an upper bound: it is what you would pay if you claimed nothing. This also means a small tax is shown at incomes just above the minimum-existence threshold, where the general family expenses credit would in practice cancel it. Applies to: Residents who file receipts — which is nearly everyone.
Your real tax may be LOWER — Married couples and civil partners may elect to be taxed jointly, which splits the income between two taxpayers and usually lowers the total tax when one partner earns much more than the other. We model a single taxpayer only. Applies to: Couples filing jointly, especially where incomes are unequal.
Your real tax may be LOWER — Madeira and the Azores replace the national IRS scale with their own, lower one — select your region in the form and the calculator applies it. Two island details stay approximate: the mínimo de existência (the low-income abatement) is applied with the national parameters, because no citable regional norm settles how the islands adjust it; and the Azores scale's average-rate column is derived from the statutory 30% reduction formula, since no official table of it exists, so the tax authority's own software could round a step differently — a cents-level effect. Applies to: Residents of Madeira or the Azores — the abatement point only matters on low salaries.
Your real tax may be LOWER — The dependant credit is higher for a second and further child aged up to six, and the ascendant credit is higher when only one ascendant lives with you. We apply the base amounts only. Applies to: Families with more than one young child, or with a single ascendant in the household.
Your real tax may be LOWER — The specific deduction can be raised above the fixed amount for fees paid to a professional order, when membership is required for the job. We apply the standard amount. Applies to: Employees who must belong to a professional order — lawyers, doctors, engineers, architects.

This calculator is for information only and is not tax advice. Rates and thresholds change; check the methodology page for sources and verification dates, and confirm your own situation with a qualified adviser.