From next year, the Circulation Single Tax (IUC) will be subject to new rules, requiring payment on a single date in February, instead of the car’s registration anniversary month. However, this measure might have the “opposite effect” intended by the Government in 2026.
The reason for this single date is to help people “not forget” to pay the tax on time, explained Finance Minister Joaquim Miranda Sarmento at the end of last week.
Nevertheless, “in the first year, it might not achieve this goal or might have the opposite effect, as altering a date many Portuguese are accustomed to might lead to forgetfulness regarding the very change“, said tax lawyer and university law professor Carolina Silva during an interview with TVI on Tuesday.
The lawyer further emphasized that the “change is not yet finalized,” as the Government needs to “submit a proposal to the Assembly of the Republic, which will decide and approve this change, and the Government assures it will do so after completing the work related to the State Budget, expected at the end of the month.”
Carolina Silva also warns of the “impact on the household budget” for families with more than one car, “because instead of distributing this tax payment over the year, in the months of the car registrations, they will see this payment concentrated in February and October“.
If you own a car and are used to paying the Circulation Single Tax in the car’s anniversary month, know that starting in 2026 the payment calendar for this tax will change
Beatriz Vasconcelos | 07:59 – 07/11/2025
Government calls it a “fiscal simplification” measure
During a Parliamentary hearing on the draft State Budget Law for 2026 (OE2026), Joaquim Miranda Sarmento justified the proposed change by the Executive as a “fiscal simplification” measure.
“It seems to us that it will improve the way taxes are paid because it will help people not forget and [avoid] paying fines“, explained Miranda Sarmento.
Currently, the IUC is paid in the vehicle’s registration month.
The move to a fixed date is one of the 30 measures in the “tax simplification agenda” that Luís Montenegro’s first Government presented in January 2025.
At the time, Joaquim Miranda Sarmento had already justified the change by saying “many people” forget “which month they bought the car,” ending up paying late and incurring fines.
Today in Parliament, he reminded the assembly that the Government will propose that “the payment be made in February” if the amount does not exceed 100 euros, or that the value be “spread between February and October” if the total amount payable to the State is higher.
“The assembly will decide whether or not to make this change,” he said, referring to the fact that taxation rules, in this case, are a prerogative of the deputies.
