Vehicle owners with registration dates in September face a deadline of 30 September to settle their Imposto Único de Circulação (IUC) for the current year, the Portugal Tax and Customs Authority has reminded through its social media channels.
The annual road tax remains tied to the month a vehicle was first registered, meaning those with cars, motorcycles or other vehicles bearing September plates must pay before the month ends to avoid penalties.
How to settle the payment now
The Tax Authority outlines the process through the Portal das Finanças:
Log in using your NIF (tax identification number) and password
Navigate to Cidadãos → Serviços → IUC → Entregar ano corrente
Generate the payment document
The document can then be used to pay at a bank, ATM or post office. The current system requires each vehicle owner to remember their own deadline based on registration month, but this approach is about to change.
A new calendar takes effect in 2027
From next year, the IUC will no longer be linked to the month of registration. Instead, all taxpayers will follow a single calendar based on the total annual tax amount owed. The changes were approved by parliament on 17 April, with votes in favour from PSD, CDS-PP, PS, Livre and JPP, while Chega, PCP, BE and PAN abstained.
The 2027 transition period creates a bridge between the old and new systems:
• Up to €500: single payment in October
• Above €500: two instalments in July and October (or the full amount in July)
This interim regime, established under Decree-Law No. 161/2026 published on 4 August, aims to prevent situations where a vehicle owner might face two tax bills in quick succession, particularly those whose registration falls late in the year.
Fixed dates arrive in 2028
From 2028 onwards, April becomes the reference month for all IUC payments. The number of instalments depends on the total amount:
• Up to €100: single payment by the end of April
• Between €100 and €500: two instalments in April and October
• Above €500: three instalments in April, July and October
Taxpayers who prefer to settle the full amount in April may do so, even when eligible for instalments. The government states the changes are designed to promote voluntary compliance and strengthen transparency in the tax relationship.
What happens if a vehicle is taken off the road
The new rules allow a vehicle owner to request cancellation of the 2027 tax assessment if the registration is cancelled before the anniversary date that year. This applies to vehicles in categories A, B, C, D and E, covering circumstances such as scrapping a car or selling it without proper transfer of ownership.
Changes for drivers with disabilities
A significant change affects people with disabilities. Previously, those with an incapacity degree of 60% or higher could claim a full exemption on one vehicle per year. Under the new rules, the exemption is capped at €240 annually. Any IUC amount exceeding this limit must be paid by the beneficiary. The exemption applies to category B vehicles meeting certain emission standards, as well as categories A and E, provided the vehicle is registered in the name of the person with disabilities.
Reaction from motoring associations
The Automobile Club of Portugal acknowledged the simplified calendar as a positive step, while repeating its longstanding position that the IUC should be abolished entirely. However, trade groups representing car dealers warned that concentrating payments will create cash flow pressures. Representatives from the Portuguese Association of Motor Trade and the Automobile Association of Portugal raised concerns about the financial strain on families and businesses, particularly those holding used vehicle stock.
