Tax

Madeira extends its 30% IRS differential to all 9 brackets in 2026

Summary

The 2026 Regional Budget (DLR 8/2025/M, 30 Dec 2025) extended the maximum 30% reduction in the IRS rate to all 9 income brackets; before, it was limited to the lower brackets. The withholding exemption threshold rose to €980/month.

What this means for you

Every tax resident in Madeira benefits. Simulators calibrated for the mainland overstate the tax of Madeira residents by ~30% per bracket.

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