Brazil Income Tax 2026
Compare the income tax withheld from your salary under the 2025 and 2026 rules and see how much you save each month and each year.
Brazil — Lei 15.270/2025 and Lei 15.191/2025 (Receita Federal tables). Rules in force on 10/24/2026.
Estimate for guidance only: check the official sources or a licensed professional before relying on it.
What changes and when
The tax return filed in 2026 (base year 2025) still follows the old rules: there is no reduction, the annual exemption limit is R$ 28,467.20 and the simplified discount is capped at R$ 16,754.34.
The return filed in 2027 (base year 2026) is the first with the annual reduction: income up to R$ 60,000.00 in the year pays no tax, and the reduction falls linearly to zero at R$ 88,200.00.
The monthly reduction also applies to the 13th salary, which is taxed on its own at source.
From 2026, people whose total yearly income (including exempt income and dividends) exceeds R$ 600,000.00 pay a minimum tax that rises linearly from 0% to 10% at R$ 1,200,000.00, minus the tax already paid. It is settled in the annual return.
Dividends above R$ 50,000.00 paid by the same company to the same person in a month have 10% withheld at source from 2026.
To see your full payslip with INSS, income tax, transport voucher and other deductions, use the calculator: Net Salary 2026
Frequently asked questions
Who stops paying income tax in 2026?
Workers whose taxable monthly income is up to R$ 5,000.00 have the whole withholding cancelled by the reduction. Between R$ 5,000.01 and R$ 7,350.00 the tax is partially reduced; above R$ 7,350.00 nothing changes.
Does the R$ 5,000.00 limit refer to the gross or the net salary?
The reduction is based on the taxable income of the month (the gross salary subject to income tax), before INSS and other deductions.
Will my 2026 tax return already have the new exemption?
No. The return filed in 2026 refers to 2025 income and uses the old rules. The annual reduction starts with the return filed in 2027, for 2026 income.
Why can I get a refund in 2027 if my withholding was already reduced?
The monthly withholding uses the monthly simplified discount of R$ 607.20, while the return can use 20% of the income (up to R$ 17,640.00) and the annual reduction. For many salaries between R$ 5,000.00 and R$ 7,350.00 this makes the yearly tax lower than what was withheld.
Does the minimum tax (IRPFM) affect salaried workers?
Only above R$ 600,000.00 of total yearly income. For salaries the progressive table usually already collects more than the minimum rate, so the additional amount is often zero.
How the 2026 income tax calculation works
This page is for Brazilian salaried workers (CLT) who want to know what changed in the income tax withheld from their paycheck. You enter the gross monthly salary, the number of dependents and any court-ordered alimony, and the calculator shows the tax withheld at source under the 2025 rules and under the 2026 rules of Lei 15.270/2025, the saving per month and per year, and the net salary after INSS and income tax. It also gives a first estimate of the 2027 annual tax return (base year 2026) and warns you when the minimum tax on high incomes applies.
INSS is charged by brackets (Portaria MPS/MF 13/2026). The tax base is the gross salary minus the larger of the legal deductions (INSS, R$ 189.59 per dependent and alimony) and the R$ 607.20 simplified discount. The progressive table of Lei 15.191/2025 gives the tax, and then the reduction of Lei 15.270/2025 applies: R$ 312.89 up to R$ 5,000.00 of income, and 978.62 minus 0.133145 times the income up to R$ 7,350.00. The annual estimate uses the table of exercício 2027 and the reduction 8,429.73 minus 0.095575 times the income.
Example: a salary of R$ 5,000.00 with no dependents pays INSS of R$ 501.51. The simplified discount is larger than the legal deductions, so the base is R$ 4,392.80. The table tax is R$ 312.89 under the 2025 rules and R$ 0.00 under the 2026 rules, a saving of R$ 312.89 per month and R$ 4,067.57 in the year with the 13th salary. The annual income of R$ 60,000.00 leaves the 2027 return with R$ 0.00 of tax due. Limitations: one salary only, no other income, no exemption for people over 65, and the result is an estimate.