Brazil Income Tax Rates 2026: Personal Income Tax, Corporate Tax and 2017-18 Reference
A practical guide to Brazil's income tax system, including current 2026 individual tax brackets, the new income-tax reduction, corporate income tax, social contribution on profits, capital gains, residency and historical rates.
Updated: 23 October 2026 | Currency: Brazilian real (BRL / R$)
1. Brazil income tax law and who pays tax
Individual income tax (Imposto sobre a Renda da Pessoa Física, or IRPF) applies to taxable income of individuals. Corporate income tax (Imposto de Renda da Pessoa Jurídica, or IRPJ) applies to companies and equivalent persons, generally on actual, presumed or arbitrated profits. The Contribuição Social sobre o Lucro Líquido (CSLL) is a separate contribution on company profits.
Key legal sources include Law No. 9,250/1995 (individual taxation), Law No. 9,249/1995 (income-tax provisions), Law No. 7,689/1988 (CSLL) and Law No. 15,270/2025 (2026 IRPF reduction and high-income minimum-tax rules).
2. Brazil personal income tax brackets for 2026 (monthly IRPF)
The following monthly taxable-base table applies from January 2026. These are marginal rates, not a flat tax on all earnings. The deduction column is the fixed amount subtracted when calculating tax for the relevant bracket.
| Monthly taxable base (BRL) | Marginal rate | Deduction (BRL) |
|---|---|---|
| Up to 2,428.80 | 0% | 0 |
| 2,428.81 - 2,826.65 | 7.5% | 182.16 |
| 2,826.66 - 3,751.05 | 15% | 394.16 |
| 3,751.06 - 4,664.68 | 22.5% | 675.49 |
| Above 4,664.68 | 27.5% | 908.73 |
Calculation: Monthly IRPF before any special reduction is generally the taxable base multiplied by the relevant rate, less the bracket deduction. The base can differ from gross salary because allowable deductions or the simplified monthly deduction may apply.
Official source: Receita Federal - 2026 income tax tables.
3. New 2026 relief for monthly earnings up to BRL 5,000
Under Article 3-A of Law No. 9,250/1995, inserted by Law No. 15,270/2025, a separate reduction applies after calculating monthly IRPF. This is not a change to the progressive bracket thresholds.
| Monthly taxable earnings subject to adjustment | Reduction of calculated tax |
|---|---|
| Up to BRL 5,000 | Up to BRL 312.89, limited to the tax calculated, so the resulting IRPF is zero |
| BRL 5,000.01 to 7,350 | BRL 978.62 minus (0.133145 × qualifying monthly earnings), declining to zero |
| Above BRL 7,350 | No reduction under this rule |
For 2026, the monthly deduction for each qualifying dependent is BRL 189.59 and the maximum optional simplified monthly deduction is BRL 607.20, subject to the official rules. See Receita Federal worked examples.
4. Annual IRPF table for calendar year 2026
For the 2027 filing exercise covering 2026 income, the official annual taxable-base table is:
| Annual taxable base (BRL) | Marginal rate | Deduction (BRL) |
|---|---|---|
| Up to 29,145.60 | 0% | 0 |
| 29,145.61 - 33,919.80 | 7.5% | 2,185.92 |
| 33,919.81 - 45,012.60 | 15% | 4,729.91 |
| 45,012.61 - 55,976.16 | 22.5% | 8,105.85 |
| Above 55,976.16 | 27.5% | 10,904.66 |
There is also an annual reduction mechanism for qualifying annual earnings up to BRL 60,000, with tapering relief through BRL 88,200. High-income taxpayers may be subject to separate minimum-tax provisions introduced by Law No. 15,270/2025. Check the official guidance before calculating a final annual liability.
5. Tax residents, non-residents and self-employed people
Brazilian tax residency is determined by legal criteria including immigration status, the nature of residence and time spent in Brazil; it is not simply a universal 183-day calendar-year test. Tax residents generally report taxable worldwide income, subject to relief under domestic rules and treaties. Non-residents are generally taxed on Brazilian-source income through withholding or other specific regimes; rates vary by income category and circumstances.
Employees typically have income tax withheld at source (IRRF). Self-employed individuals may need to calculate and pay monthly tax under Carnê-Leão on qualifying receipts, with annual reconciliation. Contributions to official social security, eligible dependents, court-ordered support and certain education and medical expenses can be relevant deductions, subject to statutory conditions and limits. Consult the Receita Federal personal income tax portal.
6. Corporate income tax: IRPJ and CSLL
Under the general IRPJ rules, companies pay 15% on taxable profits plus an additional 10% on profits exceeding BRL 20,000 per month (or the equivalent threshold for the relevant assessment period). The general CSLL rate for ordinary companies is 9%. Together these can produce a combined marginal burden of 34% on profit above the additional-IRPJ threshold, assuming the ordinary regime and no special rules.
| Tax or contribution | General treatment |
|---|---|
| IRPJ - standard rate | 15% of taxable profit |
| IRPJ - additional rate | 10% on profit exceeding BRL 20,000 per month |
| CSLL - ordinary companies | 9% of the applicable profit base |
| Financial and certain regulated entities | Special CSLL rates and rules may apply; verify by entity type and period |
Companies may fall under lucro real (actual profit), lucro presumido (presumed profit) or other legally permitted regimes. The taxable base and available deductions depend on the regime. See the official IRPJ guidance and CSLL guidance.
7. Capital gains tax in Brazil
For capital gains subject to the general individual progressive regime, tax applies to each portion of the gain at the following rates. Special rules, exemptions and different regimes may apply to securities, real estate and non-residents.
| Portion of taxable gain (BRL) | Rate |
|---|---|
| Up to 5,000,000 | 15% |
| Above 5,000,000 to 10,000,000 | 17.5% |
| Above 10,000,000 to 30,000,000 | 20% |
| Above 30,000,000 | 22.5% |
Small-value asset disposals and certain residential property transactions can qualify for specific exemptions if legal conditions are met. A BRL 35,000 small-value limit is not a blanket exemption for every type of gain. See Receita Federal - capital gains rates.
Brazil also has state-level inheritance and donation tax (ITCMD). Its rates and conditions depend on state legislation; it should not be confused with federal capital gains tax.
8. Historical Brazil income tax rates: 2017 and 2018
The original article covered 2017-18. Brazil's tax year is calendar-based, so the following annual brackets are presented as a historical reference for that period rather than a current schedule.
| Annual taxable income (BRL) | Historical marginal rate |
|---|---|
| Up to 22,847.76 | 0% |
| 22,847.77 - 33,919.80 | 7.5% |
| 33,919.81 - 45,012.60 | 15% |
| 45,012.61 - 55,976.16 | 22.5% |
| Above 55,976.16 | 27.5% |
Historical corporate rates described in the original article included 15% IRPJ, a 10% additional IRPJ on taxable profit above the relevant threshold, and 9% general CSLL. These are conceptually distinct taxes. Historic deductions and thresholds must be assessed under the rules in force for the relevant calendar year.
9. Filing, withholding and official resources
Individual taxpayers may be required to file an annual Declaração de Ajuste Anual if they meet the conditions announced for that filing exercise. Filing deadlines and mandatory-filing thresholds are published each year and should not be assumed from a prior year's guidance. Businesses have separate payment, reporting and digital bookkeeping obligations according to their tax regime.
Frequently asked questions
What is Brazil's highest individual income tax rate in 2026?
The highest marginal rate in the standard progressive IRPF table is 27.5%. Separate high-income minimum-tax rules can also be relevant.
Is everyone earning BRL 5,000 a month exempt in 2026?
The new monthly reduction can reduce IRPF to zero for qualifying taxable earnings up to BRL 5,000, subject to the law's conditions and the applicable calculation.
What is the standard corporate income tax rate?
The general IRPJ rate is 15%, plus 10% on profits above the statutory threshold; ordinary CSLL is generally 9%, assessed separately.
Disclaimer: This article is general information, not a tax opinion. Brazilian tax legislation, treaties, special regimes and official guidance control individual cases.