November IRS Tax Withholding Halved Ahead of 2027 Settlement

Personal income tax (Imposto sobre o Rendimento das Pessoas Singulares or IRS) withholding will drop by 50% in November to reflect tax cuts approved by parliament, returning to standard rates in December. Tax specialists noted the temporary reduction will increase workers' net pay in November, but will reduce tax refunds or trigger additional payments when 2026 tax returns are filed in 2027. Experts noted that while refunds will shrink, the year-end adjustment remains smaller than in previous years.