Young people up to 35 years old can ask their employer to withhold less income tax

Instead of having to wait for the final settlement, the new Youth Income Tax rules allow workers to request the rules be applied directly to their monthly salary.

js young workers who are starting their careers can now benefit from a more immediate impact from IRS Jovem on their monthly earnings, by asking employers to application of the new retention rules at the source. Published in the Official Gazette of the Union, the IR withholding tables for 2025 include the possibility of applying the tax incentive directly to the paycheck, instead of waiting for the adjustment at the end of the year, says the .

The Young IRS, introduced by the previous Government and recently extended to workers up to 35 years old, provides for the exemption of a portion of annual income. However, it is up to the employee to inform the employer of their intention to be taxed under this special regimeindicating the number of tax years since the beginning of your professional activity. This information allows the company to calculate withholding based on the non-exempt portion of the salary, ensuring lower taxation.

In the first year of earning income, all salary is exempt from IRS, eliminating any monthly withholding. Between the second and fourth year, 75% of the income is exempt, with withholding applied to only 25%. This exemption is progressively reduced: 50% between the fifth and seventh years, and 25% between the eighth and tenth. After this period, general taxation applies.

For example, a 30-year-old in his eighth year of work, with a gross salary of 1100 euros, would normally pay 90 euros in monthly IRS. However, with the 25% exemption from IRS Jovem, withholding only applies to 75% of income (825 euros), resulting in a discount of 45 euros.

There is no official form to request the application of Youth Income Tax. Workers must inform the employer by email or other usual means, indicating the tax year in question, in accordance with article 99-F of the IRS Code.

If the young person does not communicate, the tax calculation follows the general rules, with the correction made at the time of the annual Income Tax calculation. However, by not reporting, you miss the opportunity to benefit from the immediate increase in net income.