--- title: "IRS 2025 Simulator: How to Calculate Tax on 2025 Income" description: "Learn how to calculate IRS 2025 with our free simulator. Tax brackets, deductions, effective rate and practical example for employees in Portugal." lang: en json-ld: | [ { "@context": "https://schema.org", "@type": "Article", "headline": "IRS 2025 Simulator: How to Calculate Tax on 2025 Income", "description": "Learn how to calculate IRS 2025 with our free simulator. Tax brackets, deductions, effective rate and practical example for employees in Portugal.", "url": "https://grupoyour.com/en/blog/irs-2025-simulator-how-to-calculate", "datePublished": "2026-02-25T10:00:00+00:00", "dateModified": "2026-03-31T00:58:13.503925+00:00", "author": { "@type": "Person", "name": "Pedro Flores", "sameAs": "https://www.linkedin.com/in/pedroflores/", "url": "https://www.linkedin.com/in/pedroflores/" }, "publisher": { "@type": "Organization", "name": "Grupo Your", "logo": { "@type": "ImageObject", "url": "https://grupoyour.com/favicon.png", "width": 512, "height": 512 }, "sameAs": [ "https://www.linkedin.com/company/grupoyour/", "https://www.facebook.com/OGrupoYour", "https://www.instagram.com/grupoyour/" ] }, "image": { "@type": "ImageObject", "url": "https://grupoyour.com/images/blog/grupo-your-simulador-irs-2025-como-calcular.jpg", "width": 1200, "height": 630 }, "mainEntityOfPage": { "@type": "WebPage", "@id": "https://grupoyour.com/en/blog/irs-2025-simulator-how-to-calculate" }, "inLanguage": "en", "keywords": "irs, impostos, simulador, escalões irs, deduções, categoria a, fiscalidade", "wordCount": 1028 }, { "@context": "https://schema.org", "@type": "BreadcrumbList", "itemListElement": [ { "@type": "ListItem", "position": 1, "name": "Grupo Your", "item": "https://grupoyour.com" }, { "@type": "ListItem", "position": 2, "name": "Blog", "item": "https://grupoyour.com/en/blog" }, { "@type": "ListItem", "position": 3, "name": "IRS 2025 Simulator: How to Calculate Tax on 2025 Income", "item": "https://grupoyour.com/en/blog/irs-2025-simulator-how-to-calculate" } ] }, { "@context": "https://schema.org", "@type": "BreadcrumbList", "itemListElement": [ { "@type": "ListItem", "position": 1, "name": "Home", "item": "https://grupoyour.com/en" }, { "@type": "ListItem", "position": 2, "name": "Blog", "item": "https://grupoyour.com/en/blog" }, { "@type": "ListItem", "position": 3, "name": "IRS 2025 Simulator: How to Calculate Tax on 2025 Income" } ] } ] --- [Saltar para o conteúdo](#main-content) [![Grupo Your - Abertura de Empresa em Portugal](/assets/logo-2wXESdnX.png)](/en) Grupo YourServicesTools[Contacts](/en/contacts) 7 EN Personalized Proposal 1. [Home](/en) 2. [Blog](/en/blog) 3. IRS 2025 Simulator: How to Calculate Tax on 2025 Income [Back to blog](/en/blog) [irs](/en/blog?tag=irs)[impostos](/en/blog?tag=impostos)[simulador](/en/blog?tag=simulador)[escalões irs](/en/blog?tag=escal%C3%B5es%20irs)[deduções](/en/blog?tag=dedu%C3%A7%C3%B5es)[categoria a](/en/blog?tag=categoria%20a)[fiscalidade](/en/blog?tag=fiscalidade) # IRS 2025 Simulator: How to Calculate Tax on 2025 Income ![Pedro Flores](/images/authors/pedro-flores.png) [Pedro Flores](/en/blog/author/pedro-flores)[](https://www.linkedin.com/in/pedroflores/) 25 February 2026· 5 min read Share ![IRS 2025 Simulator: How to Calculate Tax on 2025 Income por Pedro Flores - Grupo Your Contabilidade](https://xmvtahclopqwmxwnbimy.supabase.co/storage/v1/object/public/blog-images/grupo-your-simulador-irs-2025-como-calcular.jpg "IRS 2025 Simulator: How to Calculate Tax on 2025 Income por Pedro Flores - Grupo Your Contabilidade") ## In this article - [Introduction](#introduction) - [What is the IRS 2025 Simulator](#what-is-the-irs-2025-simulator) - [Main Features](#main-features) - [Who Is It For](#who-is-it-for) - [Calculation Methodology](#calculation-methodology) - [Step 1 - Category A Specific Deduction](#step-1---category-a-specific-deduction) - [Step 2 - Division by Marital Coefficient](#step-2---division-by-marital-coefficient) - [Step 3 - Applying IRS Brackets](#step-3---applying-irs-brackets) - [IRS Brackets - 2025 Income](#irs-brackets---2025-income) - [Step 4 - Tax Deductions](#step-4---tax-deductions) - [Tax Deductions Table - 2025](#tax-deductions-table---2025) - [Step 5 - Final Assessment](#step-5---final-assessment) - [Practical Example](#practical-example) - [Simulator Result - Illustrative Example](#simulator-result---illustrative-example) - [How to Use the Simulator](#how-to-use-the-simulator) - [«Base Data» Tab](#base-data-tab) - [«Expenses» Tab](#expenses-tab) - [Interpreting Results](#interpreting-results) - [Simulator Limitations](#simulator-limitations) - [Conclusion](#conclusion) - [Read also](#read-also) ## Introduction IRS - Personal Income Tax - is the main direct tax in Portugal. Every year, employees who earned Category A income must submit their annual declaration, typically between March and June of the following year. In 2026, taxpayers will declare income earned during 2025. To help citizens estimate their IRS payment or refund before the official declaration, the [IRS 2025 Simulator](/en/irs-simulator-2026) was developed - an interactive digital tool that allows this estimate to be made simply, quickly and clearly. This article describes the calculation methodology used, the applicable brackets and deductions for 2025 income, and explains how to use the simulator most effectively. ## What is the IRS 2025 Simulator The [IRS 2025 Simulator](/en/irs-simulator-2026) is an interactive web application developed for employees (Category A) residing in mainland Portugal. The simulator was built based on the IRS brackets approved for 2025 income, as per the 2025 [State Budget](/en/state-budget "State Budget"). ### Main Features - Automatic real-time IRS calculation - Support for different tax situations: single, married with 1 holder and married with 2 holders - Consideration of dependents and respective deductions - Category A specific deduction (Social Security) - Tax deductions for health, education, housing and general family expenses - Comparison between net tax and withholding tax - Display of effective IRS rate - Line-by-line detail of the entire calculation process ### Who Is It For This simulator is intended for employees who want to anticipate their IRS declaration result. It is especially useful for those who want to understand whether they will have IRS to pay or receive, adjust withholding tax throughout the year, or simply understand how the tax calculation works. The simulator does not replace the official declaration to be submitted on the Finance portal (irs.portaldasfinancas.gov.pt) nor the advice of a Certified Accountant. ## Calculation Methodology The IRS calculation for Category A income follows a logical sequence of steps, as established in the IRS Code (CIRS). The simulator faithfully reproduces this sequence. ### Step 1 - Category A Specific Deduction The first step is to determine taxable income by subtracting the specific deduction from gross income. For Category A (employment income), this deduction is the greater of: - The value of mandatory contributions to social protection schemes (Social Security), calculated at 11% of gross salary - The legal minimum of **€4,104** per year **Formula:** Taxable Income = Gross Income − max(Gross Income × 11%; €4,104) ### Step 2 - Division by Marital Coefficient For married taxpayers with two income holders, the combined taxable income is divided by 2 before applying the brackets. This division ensures more equitable treatment for couples where both spouses work. For single taxpayers and married with one holder, the coefficient is 1. After calculating gross tax, the value is multiplied again by the coefficient. ### Step 3 - Applying IRS Brackets IRS brackets work progressively: each bracket taxes only the portion of income within that range. To simplify the calculation, the marginal rate is applied to total income, minus a deductible portion. #### IRS Brackets - 2025 Income Taxable Income (€) Marginal Rate Deductible Portion Up to €8,059 13.00% €0.00 €8,059 to €12,160 16.50% €282.07 €12,160 to €17,233 22.00% €950.88 €17,233 to €22,407 25.00% €1,467.60 €22,407 to €28,141 32.00% €3,036.09 €28,141 to €41,629 35.25% €3,950.58 €41,629 to €44,987 43.50% €7,388.02 €44,987 to €83,696 45.00% €8,062.54 Over €83,696 48.00% €10,573.42 **Gross Tax** = Income (divided) × Marginal Rate − Deductible Portion ### Step 4 - Tax Deductions After determining gross tax, tax deductions are applied - amounts that directly reduce the calculated tax. The simulator considers the main deductions provided in article 78 and following of the CIRS: #### Tax Deductions Table - 2025 Expense Type Deduction / Limit Health Expenses (art. 78-C) 15% - up to €1,000 Education Expenses (art. 78-D) 30% - up to €800 Housing - Interest pre-2012 (art. 78-E) 15% - up to €296 General Family Expenses (art. 78-F) 35% - up to €250/holder Deduction per dependent (1st child) €600 Deduction per dependent (2nd and beyond) €900 each ### Step 5 - Final Assessment The final result is calculated by subtracting total deductions from gross tax, obtaining net tax. From this, the total withholding tax made throughout the year by the employer is deducted. **IRS to Pay** = Net Tax − Withholding Tax **IRS Refund** = Withholding Tax − Net Tax (when withholding exceeds the tax) ## Practical Example To illustrate the simulator's operation, consider a single taxpayer with no dependents, annual gross income of €24,000, withholding tax of €3,600, health expenses of €500 and invoices with TIN worth €1,500. #### Simulator Result - Illustrative Example Component Value Annual Gross Income €24,000.00 Category A Specific Deduction − €4,104.00 Taxable Income €19,896.00 Gross Tax (25% bracket) €3,506.40 Health Deduction (15% × €500) − €75.00 General Expenses Deduction (35% × €1,500 → lim. €250) − €250.00 Net Tax €3,181.40 Withholding Tax − €3,600.00 **IRS REFUND** **€418.60** Effective IRS Rate 13.3% ## How to Use the Simulator ### «Base Data» Tab In the first tab, the user should fill in the essential fields: - **Annual Gross Income** - sum of all gross payslips received in 2025 - **Tax Status** - choose between Single, Married with 1 Holder or Married with 2 Holders - **Number of Dependents** - children or other dependents - **Total Withholding Tax** - total amount withheld by the employer throughout the year ### «Expenses» Tab In the second tab, the user can enter the main deductible expenses. The simulator automatically applies the legal percentages and limits: - **Health Expenses** - consultations, medication, glasses, surgeries, treatments - **Education Expenses** - tuition, books, school supplies, childcare - **Housing Interest** - only for mortgage contracts prior to 2012 - **General Family Expenses** - all invoices reported to the Tax Authority with the taxpayer's TIN ### Interpreting Results The results panel highlights whether there is IRS to Pay or Receive, with the respective amount. The effective IRS rate and a complete step-by-step calculation detail are also displayed for full transparency. ## Simulator Limitations - Applies exclusively to mainland Portugal residents with Category A income - Does not cover income from other categories (B, E, F, G, H) - Does not include specific deductions for certain professions, disability, or special tax regimes (e.g., NHR, IFICI) - Brackets and values are based on available 2025 data and may be updated by the Tax Authority - Housing interest only for contracts prior to 2012 For more complex tax situations, always consult a Certified Accountant. ## Conclusion The [IRS 2025 Simulator](/en/irs-simulator-2026) is a useful and accessible tool that allows any employee to estimate, with a high degree of reliability, the result of their IRS declaration before official submission. By understanding the calculation methodology - from the specific deduction to tax deductions - taxpayers are better equipped to make decisions throughout the year: adjusting withholding tax, saving invoices, or planning deductible expenses in health, education or housing. Tax literacy is a tool for financial autonomy. Knowing how IRS works is not just an obligation - it's a real advantage in every citizen's daily life. ### Read also - [IRS 2025: What Changes in the Declaration This Year](/en/blog/irs-2025-what-changes-in-declaration) - [Validate Invoices for IRS 2026: Complete Guide](/en/blog/validate-invoices-irs-2026-complete-guide) - [Fiscal Calendar 2026: All Dates and Obligations](/en/blog/fiscal-calendar-2026-dates-obligations) - [Net Salary Simulator](/en/salary-simulator) 0 0 Share ### Get the latest tax news Subscribe to our newsletter and receive articles, tax alerts and tips directly in your inbox. Subscribe I agree to receive email communications from Grupo Your. I can unsubscribe at any time. My data will be processed according to the [privacy policy](/en/privacy-policy). ### Need help with your company? Talk to us and receive a proposal tailored to your business. [Company Formation](/en/company-formation)[Accounting](/en/accounting)[Payroll](/en/payroll)[Tax Consulting](/en/tax-consulting) ### More on irs [View all](/en/blog?tag=irs) [ ![Working from home and selling it: the tax authority demands an exclusivity the law does not require por Pedro Flores - Grupo Your Contabilidade](https://xmvtahclopqwmxwnbimy.supabase.co/storage/v1/object/public/blog-images/grupo-your-uso-profissional-habitacao-propria-permanente-irs.jpg "Working from home and selling it: the tax authority demands an exclusivity the law does not require por Pedro Flores - Grupo Your Contabilidade") #### Working from home and selling it: the tax authority demands an exclusivity the law does not require The Portuguese tax authority refused the capital gains reinvestment relief to a lawyer working from home, for lack of exclusive residential use. The law requires no such exclusivity - and case law confirms it. ![](/images/authors/pedro-flores.png)Pedro Flores · 20 Aug ](/en/blog/working-from-home-capital-gains-own-permanent-residence-pit) ### Recent articles [View blog](/en/blog) [ ![IMI and AIMI in 2026: Payment Deadlines, Installments and How to Reduce the Amount Payable por Pedro Flores - Grupo Your Contabilidade](https://xmvtahclopqwmxwnbimy.supabase.co/storage/v1/object/public/blog-images/grupo-your-imi-aimi-2026-prazos-como-reduzir.jpg "IMI and AIMI in 2026: Payment Deadlines, Installments and How to Reduce the Amount Payable por Pedro Flores - Grupo Your Contabilidade") Impostos sobre o Património #### IMI and AIMI in 2026: Payment Deadlines, Installments and How to Reduce the Amount Payable ![](/images/authors/pedro-flores.png)Pedro Flores · 5 Aug ](/en/blog/property-tax-imi-aimi-2026-deadlines-reduction)[ ![Productivity Bonuses and Salary Increases: The Tax Benefits Your Company Is Not Using (2026) por Pedro Flores - Grupo Your Contabilidade](https://xmvtahclopqwmxwnbimy.supabase.co/storage/v1/object/public/blog-images/grupo-your-premios-produtividade-valorizacao-salarial-2026.jpg "Productivity Bonuses and Salary Increases: The Tax Benefits Your Company Is Not Using (2026) por Pedro Flores - Grupo Your Contabilidade") Fiscalidade de Empresas #### Productivity Bonuses and Salary Increases: The Tax Benefits Your Company Is Not Using (2026) ![](/images/authors/pedro-flores.png)Pedro Flores · 4 Aug ](/en/blog/productivity-bonuses-salary-increase-tax-benefits-2026)[ ![Short-Term Rentals in 2026: Taxation, VAT, Coefficients and Obligations por Pedro Flores - Grupo Your Contabilidade](https://xmvtahclopqwmxwnbimy.supabase.co/storage/v1/object/public/blog-images/grupo-your-alojamento-local-fiscalidade-2026.jpg "Short-Term Rentals in 2026: Taxation, VAT, Coefficients and Obligations por Pedro Flores - Grupo Your Contabilidade") Fiscalidade #### Short-Term Rentals in 2026: Taxation, VAT, Coefficients and Obligations ![](/images/authors/pedro-flores.png)Pedro Flores · 3 Aug ](/en/blog/short-term-rental-taxation-portugal-2026)[ ![Capital Gains on Selling a House: How IRS is Calculated and How to Reinvest Without Paying (2026) por Pedro Flores - Grupo Your Contabilidade](https://xmvtahclopqwmxwnbimy.supabase.co/storage/v1/object/public/blog-images/grupo-your-mais-valias-venda-casa-irs-2026.jpg "Capital Gains on Selling a House: How IRS is Calculated and How to Reinvest Without Paying (2026) por Pedro Flores - Grupo Your Contabilidade") IRS #### Capital Gains on Selling a House: How IRS is Calculated and How to Reinvest Without Paying (2026) ![](/images/authors/pedro-flores.png)Pedro Flores · 2 Aug ](/en/blog/capital-gains-property-sale-irs-portugal-2026)[ ![Autonomous Taxation in 2026: How Much Does a Company Car Really Cost por Pedro Flores - Grupo Your Contabilidade](https://xmvtahclopqwmxwnbimy.supabase.co/storage/v1/object/public/blog-images/grupo-your-tributacao-autonoma-2026-viatura-empresa.jpg "Autonomous Taxation in 2026: How Much Does a Company Car Really Cost por Pedro Flores - Grupo Your Contabilidade") Fiscalidade de Empresas #### Autonomous Taxation in 2026: How Much Does a Company Car Really Cost ![](/images/authors/pedro-flores.png)Pedro Flores · 1 Aug ](/en/blog/autonomous-taxation-2026-company-car-portugal)[ ![IFICI in 2026: Who Can Pay 20% IRS in Portugal (the Regime That Replaced the NHR) por Pedro Flores - Grupo Your Contabilidade](https://xmvtahclopqwmxwnbimy.supabase.co/storage/v1/object/public/blog-images/grupo-your-ifici-2026-regime-substituto-rnh.jpg "IFICI in 2026: Who Can Pay 20% IRS in Portugal (the Regime That Replaced the NHR) por Pedro Flores - Grupo Your Contabilidade") IRS #### IFICI in 2026: Who Can Pay 20% IRS in Portugal (the Regime That Replaced the NHR) ![](/images/authors/pedro-flores.png)Pedro Flores · 31 Jul ](/en/blog/ifici-2026-portugal-nhr-successor-20-percent-tax) Explore by topic [irs](/en/blog?tag=irs)[impostos](/en/blog?tag=impostos)[simulador](/en/blog?tag=simulador)[escalões irs](/en/blog?tag=escal%C3%B5es%20irs)[deduções](/en/blog?tag=dedu%C3%A7%C3%B5es)[categoria a](/en/blog?tag=categoria%20a)[fiscalidade](/en/blog?tag=fiscalidade) Grupo Your ### What can we do for you? #### Open Company Set up your company in 48h [Learn more ](/en/company-formation)[Request Proposal ](/en/company-formation#contacto) #### Accounting Dedicated support [Learn more ](/en/accounting)[Request Proposal ](/en/accounting#contacto) #### Payroll Services Complete HR management [Learn more ](/en/payroll)[Request Proposal ](/en/payroll#contacto) #### Administrative Services Document management & compliance [Learn more ](/en/administrative-services)[Request Proposal ](/en/administrative-services#contacto) #### Tax Consulting Security and tax optimization [Learn more ](/en/tax-consulting)[Request Proposal ](/en/tax-consulting#contacto) ## Grupo Your in the Press [ PME Magazine • 20 Jul 2026 ### Pedro Flores, CEO of Grupo Your, joins panel on SME financing ](https://pmemagazine.sapo.pt/pedro-flores-ceo-do-grupo-your-integra-painel-sobre-financiamento-as-pme/)[ PME Magazine • 22 Apr 2026 ### Grupo Your launches network to integrate accounting firms without acquisitions ](https://pmemagazine.sapo.pt/grupo-your-lanca-rede-para-integrar-escritorios-de-contabilidade-sem-aquisicoes/)[ ECO • 22 Apr 2026 ### Grupo Your creates network with accounting firms as an alternative to acquisitions ](https://eco.sapo.pt/2026/04/22/grupo-your-cria-rede-com-escritorios-de-contabilidade-em-alternativa-a-aquisicoes/)[ ECO • 23 Mar 2026 ### "The limitation of accounting is the difficulty of providing services outside Portugal" ](https://eco.sapo.pt/entrevista/limitacao-da-contabilidade-e-ser-dificil-prestar-servicos-fora-de-portugal/)[ ECO • 23 Mar 2026 ### Grupo Your to launch revenue-sharing model with accounting firms ](https://eco.sapo.pt/2026/03/23/grupo-your-vai-ter-modelo-de-partilha-de-receita-com-escritorios-de-contabilidade/)[ Grupo Your • 18 Mar 2026 ### Grupo Your Launches an AI Agent. And I Still Believe in People. ](https://grupo-your.lovable.app/pt/blog/grupo-your-agente-ia-acreditar-pessoas) Load more Authors ## Meet Our Authors [See all](/en/blog/authors) [ ![Bruno Rodrigues](/images/authors/bruno-rodrigues.png) ### Bruno Rodrigues Chief Operating Officer 14 articles ](/en/blog/author/bruno-rodrigues) [ ![Hélder Costa](/images/authors/helder-costa.png) ### Hélder Costa Chief Financial Officer 19 articles ](/en/blog/author/helder-costa) [ ![Mónica Matos](/images/authors/monica-matos.png) ### Mónica Matos Partner 21 articles ](/en/blog/author/monica-matos) [ ![Pedro Flores](/images/authors/pedro-flores.png) ### Pedro Flores CEO of Grupo Your 156 articles ](/en/blog/author/pedro-flores) [ ![Sandra Lourenço](/images/authors/sandra-lourenco.png) ### Sandra Lourenço Chief Human Capital, Marketing & Sales Officer 5 articles ](/en/blog/author/sandra-lourenco) [See all authors](/en/blog/authors) [![Grupo Your](/assets/logo-2wXESdnX.png)](/en) #1 in Accounting in Portugal [](https://www.facebook.com/OGrupoYour)[](https://www.instagram.com/grupoyour/)[](https://www.linkedin.com/company/grupoyour/) #### Company - [About Us](/en/about) - [Ecosystem](/en/360-vision) - [In the Press](/en/in-the-press) - [News](/en/blog) - [Guides](/en/blog?type=guias) - [Contacts](/en/contacts) - [Careers](/en/careers) - [Your Academy](/en/your-academy) - [FAQs](/en/faq) #### Services - [Company Formation](/en/company-formation) - [Accounting](/en/accounting) - [Payroll](/en/payroll) - [Tax Consulting](/en/tax-consulting) - [Admin Services](/en/administrative-services) #### Tools - [Client Portal](https://portalcliente.grupoyour.pt/) - [CareView](https://careview.grupoyour.pt/ext/default.asp) - [Simulators](/en/simulators) - [Free Fiscal Diagnosis](/en/tax-diagnosis) - [Tax Calendar](/en/tax-calendar) - [Tax Glossary](/en/glossary) - [Financial Literacy](/en/financial-literacy) - [State Budget 2026](/en/state-budget) #### Services by Location - [🇵🇹 National Coverage](/en/contacts) - [International](/en/contacts) - [Aveiro](/en/accounting-aveiro) - [Beja](/en/accounting-beja) - [Braga](/en/accounting-braga) - [Bragança](/en/accounting-braganca) - [Castelo Branco](/en/accounting-castelo-branco) - [Coimbra](/en/accounting-coimbra) - [Évora](/en/accounting-evora) - [Faro](/en/accounting-faro) - [Funchal (Madeira)](/en/accounting-funchal) - [Guarda](/en/accounting-guarda) - [Leiria](/en/accounting-leiria) - [Lisboa](/en/accounting-lisbon) - [Ponta Delgada (Açores)](/en/accounting-ponta-delgada) - [Portalegre](/en/accounting-portalegre) - [Porto](/en/accounting-porto) - [Santarém](/en/accounting-santarem) - [Setúbal](/en/accounting-setubal) - [Viana do Castelo](/en/accounting-viana-do-castelo) - [Vila Real](/en/accounting-vila-real) - [Viseu](/en/accounting-viseu) [Terms and Conditions](/en/terms-conditions)[Privacy Policy](/en/privacy-policy)[Cookie Policy](/en/cookie-policy)[Feedback](/en/feedback)[Whistleblowing Channel](https://grupoyour.bizneohr.com/whistleblowing-channel) © 2026 Grupo Your [❤ Crafted with love by Scalor · from chaos to scale ](https://scalor.me) By browsing this site you agree to our [Terms and Conditions](/en/terms-conditions). Please also see our [Privacy and Data Protection Policy](/en/privacy-policy) and [Cookie Policy](/en/cookie-policy). I Accept