Explaining the IRS tables

Overall, the withholding rates have gone down, which means you will pay less monthly tax next year.

What are the IRS tables and why are they important?

The IRS tables indicate the amount of personal income tax rate that will be applied directly to your gross income. Here it is important to consider the source of your income (whether you are an employee or a pensioner), your marital status, whether you have dependents and whether you are disabled.

The rates in the IRS tables also vary depending on your region. Therefore, there are specific tables for Mainland Portugal, Azores and Madeira.

To put it simply...

The higher your gross income is, the higher the rate charged will be. If you are married and have dependents, these factors will also influence the corresponding tax percentage.
Therefore, if you want to calculate the percentage of your salary or pension that will be withheld for IRS purposes, you should consult these tables.

Note that the withholding is automatically applied by the employer at the time of salary processing, and this procedure is not the responsibility of employees.

To consult the IRS tables for 2021:
https://info.portaldasfinancas.gov.pt/pt/apoio_contribuinte/tabela_ret_doclib/Pages/default.aspx