IRS reimbursement is expected to be lower this year for the general taxpayers. However, for pensioners, there is a fiscal novelty that can represent an unexpected advantage in the IRS.
By 2025, a new mechanism for updating specific deductions can be translated into a tax relief.
What changes to pensioners in 2025?
The measure applies to income earned in 2024 and is followed by the update of the Social Support Index (IAS).
Specific deduction began to correspond to 8.54 times the value of IAS, which increased from € 509.26 by 2024 to € 522.50 by 2025.
According to supervisor Rogério Fernandes Ferreira, in statements to “For pensioners, the novelty is positive,” as the maximum amount of specific deduction applied to IRS category (pensioners) income increases to € 4,462.15 – plus € 111.91 compared to the previous year.
Impact on tax value
This increased specific deduction allows pensioners to be more likely to be liquidated.
In practice, it means that, along with adjustments to the retention tables at the source, the amount of tax actually payable may be slightly lower than in previous years.
However, according to Soraia Leite, spokesman for Deco Proteste, pensioners should remain attentive, as “the amount that is being used to be discount on source is getting closer to the actual amount of tax payable.”
Therefore, the reimbursement may be lower or, in some cases, the tax payable may increase.
Specific deduction: What is it?
The specific deduction corresponds to a fixed amount that is automatically subtracted to gross yield before calculating the tax due.
In the case of pensioners, this deduction applies to the income of category H.
With the new € 4,462.15 limit, many taxpayers with exclusively pension income may see their tax burden reduced.
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Conclusion
The update of specific deduction brings a small fiscal relief to pensioners, even in a context where reimbursements tend to be lower.
Although it does not represent a significant reduction for all, this change allows, in many cases, to pay less IRS without the need for additional actions.
As always, it is advisable to confirm the values and simulate different scenarios in the Finance Portal.
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