IRS Jovem
IRS Jovem is a partial exemption from income tax on employment income for young workers, tapering over several years and capped annually. It is an explainer: it carries eligibility conditions the calculator does not assume by default. The percentages and the cap follow the CIRS article cited on this page; if the rule changed recently that may not be here yet, and none of it has been through our final sign-off — the wording that binds is the Code’s.
This page is an explainer. IRS Jovem is not applied by the calculator on the home page — it depends on eligibility conditions the tool cannot check for you, so the default figures assume it is off.
A tapering exemption for young workers
IRS Jovem (article 12.º-B of the IRS Code) is a partial exemption from income tax on employment and self-employment income for young workers at the start of their careers. It does not change your social-security contribution; it reduces the IRS on part of your income for a limited number of years. It is available up to age 35, for up to 10 years of income.
The exemption is largest at the start and tapers over time. It is 100% of the eligible income in the first year, then 75% in years 2 to 4, 50% in years 5 to 7, and 25% in years 8 to 10. In each year the exemption is also capped: it cannot exceed 55 × IAS (the social-support index reference value), which for 2026 works out at 29 542,15 €. Income above that cap is taxed normally.
Why the calculator leaves it off
Whether IRS Jovem applies to you depends on facts a general calculator cannot know: your age, how many years of income you have already had, whether you have used the scheme before, and whether you meet the other conditions in the law. There is also a separate step for the monthly payslip — a specific option (under article 99.º-F) that lets the reduced withholding be reflected month by month, rather than only settled in the annual return. Because none of this can be assumed safely, the calculator computes the ordinary IRS withheld at source without the exemption. If you qualify, your actual withholding — and your annual tax — could be lower than the figure shown.
Treat this page as background, not as a personalised result. If you think you might be eligible, confirm your situation with the tax authority (Autoridade Tributária) or a qualified adviser before relying on any number. The percentages and cap above follow the CIRS article cited here; if the rule changed recently that may not be reflected yet, and none of it has been through our final sign-off — the wording that binds is the Code’s. For the everyday calculation that the tool does perform, see the income-tax and social-security pages.
The full content of this page is still being written.