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.