Changes to IUC road tax payment from 2026

“This way, people will not forget to pay and risk fines” – finance minister

The Portuguese government wants to set February as the month for paying the IUC (Single Road Tax) for those who have to pay up to €100, to “ensure people do not forget to pay”.

Finance minister Joaquim Miranda Sarmento justified the change proposed by the executive as a ‘tax simplification’ measure.

“We believe it will improve the way taxes are paid, because it will ensure that people don’t forget and, thus, [avoid] a fine,” explained Miranda Sarmento.

Currently, IUC road tax is paid in the month of the vehicle registration.

The change to a fixed date is one of 30 measures in the ‘agenda for tax simplification’ that Luís Montenegro’s first government presented in January 2025.

At the time, Joaquim Miranda Sarmento had already justified the change with the fact that “many people” forget the vehicle registration month, “end up paying late” and risk paying fines.

In parliament yesterday, the minister recalled that the government will propose payment in February if the amount does not exceed €100, or that the amount is split between February and October if the total amount is higher.

“Parliament will decide on this proposal,” he said, alluding to the fact that taxation rules, as in this case, are the prerogative of MPs.

In response to questions from the Chega bench, Joaquim Miranda Sarmento rejected the existence of any measure to increase the IUC for cars manufactured before 2007 and explained that the only change the executive intends to make is this amendment regarding the timing of car owners’ tax payments.

Miranda Sarmento insisted that there is no proposal to increase the IUC in the 2026 State Budget or in any other initiative.

Inês Lopes
Inês Lopes

Newspaper editor at The Portugal Resident

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