How much do you really take home? Net Salary Simulator 2026
📅 February 2026 · Reading time: 5 min
The start of each year brings one of the most frequent questions our Human Resources and Accounting teams receive: "How much will I take home from my gross salary?" In 2026, with the changes introduced by the State Budget, the answer has become easier to calculate - but it still depends on several variables most people are unaware of.
That is precisely why Grupo Your developed and offers for free the Net Salary Simulator 2026, a tool that combines the withholding tax tables published by the Portuguese Tax Authority with the actual employer costs - on a single screen, with no registration required.
"Knowing the gross salary is not enough. What really matters is understanding how much stays in your pocket - and how much it costs the employer."
What changed in 2026?
The year 2026 brought significant changes to Portugal's employment income taxation rules. The Government updated IRS tax brackets by 3.51%, reduced rates for the 2nd to 5th brackets by 0.3 percentage points, and updated the minimum subsistence level to €12,880 per year, ensuring that workers earning the national minimum wage remain exempt from IRS.
| Indicator | Value |
|---|---|
| National Minimum Wage 2026 | €920 - IRS exempt |
| Tax bracket update | +3.51% vs previous year |
| Minimum subsistence | €12,880 per year |
| Rate reduction | −0.3 pp on brackets 2 to 5 |
IRS tax brackets in 2026
Portugal maintains its structure of nine progressive IRS brackets. The new withholding tax tables, published in Order No. 233-A/2026, of January 6, determine the monthly amount withheld from each worker's salary:
| Monthly Gross Income | Maximum Marginal Rate | Effective Rate (approx.) |
|---|---|---|
| Up to €920 | 0.00% | 0.0% - Exempt |
| Up to €1,042 | 12.50% | ~5.3% |
| Up to €1,212 | 21.20% | ~8.1% |
| Up to €1,819 | 24.10% | ~13.5% |
| Up to €2,499 | 34.90% | ~18.8% |
| Up to €3,305 | 38.36% | ~23.6% |
| Up to €5,547 | 39.69% | ~30.1% |
| Up to €20,221 | 44.95% | ~40.9% |
| Above €20,221 | 47.17% | Maximum rate |
It is important to note that the effective withholding rate is always lower than the marginal rate - because the latter only applies to the amount exceeding the previous bracket's threshold. Confusion between these two rates leads many workers to underestimate their actual net salary.
What the simulator calculates for you
Our simulator was designed to simultaneously answer three distinct questions, depending on whether the user is an employee, a job candidate, or an HR manager:
🧮 Simulate your net salary now → - Free tool, no registration, updated with 2026 IRS tables.
How to interpret the results
The simulator shows three central values: the gross salary (as agreed in the contract), the net salary (what you receive), and the total company cost (what the employer spends). The difference between the company cost and the net amount received by the worker can be surprising - in many cases, a gross salary of €1,500 represents an actual cost of around €2,000 for the employer, while the worker receives approximately €1,200 net.
This gap - resulting from the sum of all tax and contribution charges - is often called the "tax wedge" and represents the differential between the cost of labour and the worker's purchasing power.
Social Security: the rates in force in 2026
Beyond IRS, Social Security represents the second largest salary deduction. In 2026, contribution rates remain unchanged from the previous year:
| Component | Rate |
|---|---|
| Employee rate | 11% - deducted from gross salary |
| Employer rate | 23.75% - paid additionally by the company |
These rates apply to the general regime. Special regimes exist for certain professions and sectors - such as workers with recognised disability, statutory body members, or employees of non-profit organisations - which may benefit from exemptions or reduced rates.
For HR and Accounting professionals
The Grupo Your simulator was also designed for professionals who process salaries daily. Beyond IRS and SS calculations, it includes charges for the Work Compensation Fund (FCT) - 0.5% for permanent contracts and 0.0925% for fixed-term contracts - and work accident insurance, which varies according to the activity sector and insurance provider.
The annual projection for 14 months (with holiday and Christmas bonuses) also allows for accurate estimation of an employee's annual costs, facilitating personnel budget preparation and candidate analysis.
"In salary negotiations, whoever knows the tables always has an advantage - whether it's the worker who knows what they'll receive, or the manager who knows what they'll pay."
Why does Grupo Your offer this tool for free?
At the core of what we do is the conviction that financial and labour literacy should be accessible to everyone - not just those who can afford specialised consulting. Making practical, simple, and rigorous tools available is a concrete way to fulfil that mission.
The simulator is updated annually based on published legislation, and the entire calculation methodology is transparent and auditable. We do not replace professional consulting, but we help workers, managers, and entrepreneurs arrive at meetings better prepared.
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