Regional Government approves exceptional adjustment to IRS withholding tax tables for November

The Regional Secretariat for Finance has approved, through Dispatch No. 434/2026, published in the Official Gazette of the Autonomous Region of Madeira (Supplement, Series I, No. 196, of 29 October 2026), an exceptional adjustment to the IRS withholding tax tables applicable to income from employment and pensions.

What changes#

• For income paid or made available between 1 and 30 November 2026, only 50% of the withholding amount calculated under the tables of Dispatch No. 19/2026, of 20 January, applies.
• Taxpayers whose monthly amount exceeds the upper limit of the penultimate bracket of the tables are excluded from this reduction, and their withholding remains unchanged.
• The reduction also applies when the payment includes more than one remuneration, such as the Christmas bonus.
• From 1 December 2026, the tables of Dispatch No. 19/2026 apply again, without adaptations.

Background#

The measure follows the additional reduction of IRS rates approved by the Legislative Assembly of Madeira, with retroactive effect from 1 January 2026. The stated aim is for the benefit to reach taxpayers' disposable income immediately, incorporating a mechanism to compensate for withholdings already made since the start of the year.

Corrections#

Where November withholdings were not made in accordance with these adjustments, the entity responsible for the withholding may correct them in the withholdings to be made until the end of December 2026.

The dispatch enters into force on the day after its publication and takes effect from 1 November 2026.