CNN Portugal quotes economist João Rodrigues dos Santos warning that the new IRS withholding tables risk increasing uncertainty for workers by narrowing the gap between the minimum and average wage, a phenomenon he calls 'distressing.' He links the issue to rising housing prices and volatile variable interest rates; for expats this could mean changes to take‑home pay and mortgage affordability as employers apply the revised withholding tables.
Economist: new IRS tables increase wage uncertainty
Saturday, 10 January 2026AI summary
Context & Explainers
The IRS withholding tables are government-published schedules used by employers, pension payers and other payers to calculate how much personal income tax (personal income tax (Imposto sobre o Rendimento das Pessoas Singulares) — IRS) must be deducted from each pay period. They take into account gross pay, pay frequency, marital status and dependents; updates (usually published annually or when the budget changes) affect your monthly take-home pay and are reconciled with your annual tax return (Modelo 3).
