The Madeira Regional Government has published Order No. 434/2026, which requires that only 50% of the usual income tax withholding be applied to salaries and pensions paid during November 2026.
According to the Regional Finance Secretariat, the measure is meant to pass on immediately an additional regional reduction in income tax rates, with retroactive effect from 1 January 2026. The mechanism also compensates for withholdings already made since the start of the year.
Employers and payroll services must apply the adjustments to payments made between 1 and 30 November. Holders of monthly income above the upper limit of the penultimate bracket keep the usual withholding. Any corrections may be made until the end of December, and from 1 December the standard tables apply again.