Deductions à colecta come off the tax, not off the income, which is why they are worth more than their size suggests. Each has its own percentage and its own cap, and then a global ceiling sits over the total — except for the households it does not apply to at all.
The main deductions
| Expense | Rate | Cap |
|---|---|---|
| Health | 15% | €1,000 |
| Education | 30% | €800 |
| Housing charges | 15% net of subsidies | See rent below |
| Mortgage interest | — | €296, contracts before 2012 only |
| General family expenses | 35% | €250 per taxpayer |
| General family expenses, single-parent household | 45% | €335 |
Rent, and why 2026 is different
The rent cap is €900 for 2026 and €1,000 from 2027 — a transitional figure introduced by DL 97/2026, so a number correct this year is wrong next year and vice versa.
Lower-income households get more: the cap rises to €1,100 where the reference income sits at or below the first IRS band, tapering between there and €30,000 rather than switching off at a line.
The VAT-invoice deductions
Asking for an invoice with your NIF returns part of the IVA. The general rule is 15% of the IVA borne, capped at €250 per household, in a defined list of sectors — and three categories sit outside that rule entirely.
| Category | Share of IVA returned |
|---|---|
| Listed sectors — repairs, restaurants and accommodation, hairdressing and beauty, vets, book retail, performing arts, libraries, museums, monuments | 15%, capped at €250 per household |
| Gyms and sport | 30% |
| Veterinary medicines | 35% |
| Public transport passes | 100% |
The global ceiling, and who escapes it
A ceiling applies to the total of the deductions — but not to everyone.
- Below the first IRS band, there is no ceiling at all. The total is not capped.
- Above that it tapers, from €2,500 down to a floor of €1,000 as income rises.
- Three or more dependants adds 5% per dependant to the ceiling.
Dependants and the household
| Who | Amount |
|---|---|
| Dependant | €600 |
| Dependant under 3 | €726 |
| Dependant in alternating residence | €300 to each parent |
| Ascendant living in the household | €525 |
| Joint taxation | Income split by a divisor of 2 |
IRS Jovem
| Year | Exempt |
|---|---|
| 1 | 100% |
| 2 to 4 | 75% |
| 5 to 7 | 50% |
| 8 to 10 | 25% |
It applies to employment and to self-employment income, and the exempt amount is capped at 55 times the IAS — €29,542.15 for 2026.
The minimum existence
Below €12,880 of annual income, the mínimo de existência protects the income from IRS regardless of the arithmetic above.
How much can I deduct for health expenses in Portugal?
15% of the expense, capped at €1,000 per household.
What is the rent deduction for 2026?
15% of housing charges, with the rent cap at €900 for 2026 and €1,000 from 2027. Lower-income households can reach €1,100, tapering as income rises.
Is there a higher deduction for single parents?
Yes. General family expenses are deducted at 45% with a €335 cap for a single-parent household, against 35% and €250 otherwise.
Which invoices give the biggest deduction?
Public transport passes return 100% of the IVA. Gyms and sport return 30%, veterinary medicines 35%, and the listed sectors 15% capped at €250 per household.
Is there a limit on total IRS deductions?
There is a global ceiling, but it does not apply below the first IRS band. Above that it tapers from €2,500 down to €1,000, and three or more dependants adds 5% per dependant.
How much is the IRS Jovem exemption?
100% in the first year, 75% in years two to four, 50% in years five to seven and 25% in years eight to ten, capped at 55 times the IAS — €29,542.15 for 2026.