CDS-PP proposes doubling IRS deductions for large families
The CDS-PP party has introduced a bill to double the personal income tax (Imposto sobre o Rendimento das Pessoas Singulares or IRS) deduction for families with three or more children. The proposal, scheduled for parliamentary debate this Thursday, is presented as a response to Portugal's ongoing demographic crisis. The party also advocates for a broader national strategy to address declining birth rates.
The CDS–PP is the Democratic and Social Centre – People's Party (Centro Democrático e Social – Partido Popular), a small centre-right, Christian-democratic party founded in 1974. It often partners with the larger PSD in parliament; in February 2026 it voted with the PSD and IL to approve a housing package, so its parliamentary support can influence housing and other policy outcomes.
The IRS withholding tables (tabelas de retenção na fonte) are government-published schedules that determine how much personal income tax (Imposto sobre o Rendimento das Pessoas Singulares — IRS) employers must deduct from each paycheck. They take into account gross pay, marital status, number of dependents, and disability status.
The tables are updated annually (and sometimes mid-year when budgets change), directly affecting monthly take-home pay. When tables are revised downward, workers see more in their pay packet; when raised, less. Any difference between amounts withheld and the actual tax owed is settled when the annual IRS return (Modelo 3) is filed, typically between April and June.
Employees and pensioners should check the current tables — published by the Autoridade Tributária e Aduaneira (AT) — whenever they change, as the impact on net income can be significant.
