What happened
Diário de Notícias said PSD Madeira deputies met the regional PSD group that day about a cut of 0.3 to 0.5 percentage points, from the first bracket through the sixth, recently passed in the national parliament. Pedro Coelho, speaking for the meeting, said the regional government had matched that national cut at its latest Council of Government, and that the regional decree now goes to ALRAM. He said Madeira's rates were already 30% below the mainland, and that the maximum 30% gap would stay across all nine brackets against the new national rates. The paper said the measure would cost the regional budget €5.6 million and would reach back to 1 January 2026. It also said, as something already made public, that withholding in November or December would have a 50% exemption, so the workers and pensioners covered would see more net pay before the annual IRS bill. Because the tax is progressive, the cut on the first six brackets would also lower tax on that slice of income for people in higher brackets. RTP Madeira said the PSD recalls that Madeira will follow the tax reduction, and that the proposal is still to be discussed in the regional parliament.
What it means for you
The regional decree is still for ALRAM to consider, which is what both reports say. The 0.3 to 0.5 point range is the national cut as Diário de Notícias describes it. The page does not list a separate rate for each bracket.
Sources
Publication times are the times on the source items, in Europe/Lisbon.
- Diário de Notícias, 2026-10-19 14:50 — Pedro Coelho realça nova descida do IRS e reforço do rendimento das famílias madeirenses
- RTP Madeira, 2026-10-19 23:44 — IRS vai ter nova descida intercalar, com reduções nas taxas até ao 6.º escalão (vídeo)
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