Madeira halves income tax withheld from November salaries and pensions
Madeira GuideWorkers and pensioners resident in Madeira get half the usual IRS deduction on November pay, Christmas bonus included. The highest earners are left out.
Income tax withheld from salaries and pensions paid in Madeira between 1 and 30 November will be 50% of what the current tables give. The rule is set by Despacho n.Âş 434/2026 of the Regional Secretariat of Finance, published in the region's Jornal Oficial on 29 October 2026.
It covers employment income and pensions of taxpayers resident in the Autonomous Region of Madeira. Payments that include more than one monthly pay, such as the Christmas bonus, are covered too.
Taxpayers whose monthly income exceeds the upper limit of the second-to-last bracket of the withholding tables are excluded and keep the usual withholding.
The measure brings forward the effect of the additional IRS rate cut approved for the region for 2026, which applies retroactively from 1 January 2026. According to Funchal NotĂcias, the mechanism also compensates for tax already withheld since the start of the year.
The Regional Secretariat of Finance asked companies, payroll services and other employers to apply the adjustment. An employer that misses it in November can correct it in withholdings made until the end of December. From 1 December, the withholding tables approved in January apply again without the adjustment.
In September this site reported that Madeira planned to apply an IRS withholding cut in November, and later that the regional parliament approved lower IRS rates.
Sources
Madeira Guide
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