Brazil Income Tax Rates 2026 and Historical 2018-19 IRPF, Corporate Tax and Capital Gains
A practical guide to Brazilian personal income tax, capital gains, corporate income tax and historical 2018-19 tax rates, with official legal references.
Updated 23 October 2026 | All figures in Brazilian reais (BRL), unless stated otherwise
Brazil income tax: overview and applicable law
Brazil levies individual income tax (IRPF) and corporate income tax (IRPJ). The 2018 and 2019 schedules below are preserved for historical reference, while the 2026 figures describe the current regime. Brazil normally uses calendar years for income taxation, rather than an April-to-March financial year.
Principal sources include Receita Federal's official 2026 tax tables, Law No. 15,270/2025 (income-tax reductions and high-income minimum taxation), IRPJ guidance, and CSLL guidance.
Brazil individual income tax rates in 2026
The following is the monthly taxable-base schedule applicable from January 2026. Rates are marginal; the deduction column is used in the calculation. The tax reduction for low and middle earners is applied separately, based on eligible monthly taxable earnings rather than simply replacing the brackets.
| Monthly taxable base (BRL) | Rate | Tax 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 |
2026 tax reduction for earnings up to BRL 7,350
Under Article 3-A of Law No. 9,250/1995, inserted by Law No. 15,270/2025, qualifying monthly taxable earnings of up to BRL 5,000 receive a reduction sufficient to eliminate the calculated income tax (capped at BRL 312.89). Between BRL 5,000.01 and BRL 7,350, the reduction is BRL 978.62 minus 0.133145 times eligible monthly earnings, subject to applicable limitations. No such reduction applies above BRL 7,350. See the official worked examples.
For the 2026 calendar year, the official annual tax schedule starts with a zero-rate taxable base up to BRL 29,145.60; the corresponding annual reduction can eliminate tax for qualifying annual taxable earnings up to BRL 60,000, with partial relief up to BRL 88,200. These are distinct from the 2018-19 figures below.
Historical Brazil individual tax rates: 2018 and 2019
The following original monthly IRPF brackets applied to the 2018-19 period. They are retained to help readers understand historical payroll and tax calculations, and should not be used for current filings.
| Monthly Taxable Income Slab | Tax Rate |
|---|---|
| Less Than BRL 1903,98 | 0% |
| 1903,99 to 2826,65 | 7.5% |
| 2826,66 to 3751,05 | 15% |
| 3751,06 to 4664,68 | 22.5% |
| 4664,69 and above | 27.5% |
Tax residency and non-resident withholding
Tax residency depends on immigration status, entry and departure circumstances, and the applicable Brazilian rules; the 183-day test can be relevant in certain temporary-visa situations, but is not the sole rule. Brazilian tax residents are generally taxed on worldwide taxable income, subject to treaty and domestic-law relief. Non-resident Brazilian-source employment or service income is generally subject to 25% withholding; many other non-resident payments are generally subject to 15%, subject to income type, treaty relief and special jurisdictions. See Receita Federal's remittance and withholding tables.
Deductions and allowances
Depending on the assessment method and eligibility, individual deductions can include official social-security contributions, qualifying court-ordered support, eligible dependants, qualifying education expenses (subject to statutory limits), and allowable medical expenses. For 2026 the official monthly dependent deduction is BRL 189.59; the simplified monthly deduction limit is BRL 607.20. For annual 2026 calculations, the education expense limit is BRL 3,561.50 and the simplified deduction limit is BRL 17,640. A taxpayer generally chooses the permitted deduction method that best applies to their circumstances.
Capital gains tax in Brazil
Under the progressive capital-gains rules, taxable gains on qualifying disposals of assets and rights are generally taxed by tranche as follows:
| Portion of taxable capital gain | Rate |
|---|---|
| Up to BRL 5 million | 15% |
| Above BRL 5m to 10m | 17.5% |
| Above BRL 10m to 30m | 20% |
| Above BRL 30m | 22.5% |
The official Receita Federal capital-gains guidance explains the brackets. Specific exemptions may apply, including qualifying small-value asset disposals and certain residential-property reinvestments, subject to statutory conditions. The often-quoted BRL 35,000 monthly threshold is not a universal exemption for every kind of capital gain. Brazilian state inheritance and donation tax (ITCMD) is separate from federal capital-gains tax and varies by state and applicable law.
Historical 2018-19 capital gains brackets
| Capital Gains | Tax Rate |
|---|---|
| Less Than BRL 5,000,000 | 15% |
| BRL 50,00,000 to 10,000,000 | 17.5% |
| BRL 10,000,000 to 30,000,000 | 20% |
| BRL 30,000,000 and above | 22.5% |
Brazil corporate income tax and social contribution
Most ordinary companies calculate IRPJ at 15% on taxable profits, plus a 10% additional IRPJ on profits above BRL 20,000 per month of the assessment period. CSLL is generally 9% for non-financial companies. Thus, a commonly quoted combined marginal headline rate is 34%; actual tax depends on the applicable tax base, tax regime, incentives and company type.
| Tax component | General treatment |
|---|---|
| IRPJ (corporate income tax) | 15% on taxable profit |
| Additional IRPJ | 10% on profit exceeding BRL 20,000 per month (proportionate to period) |
| CSLL (social contribution on net profit) | Generally 9% for ordinary companies; sector-specific rates may differ |
| Combined headline rate | Generally up to 34% on profits subject to full IRPJ surcharge and 9% CSLL |
IRPJ may be assessed using lucro real (actual taxable profit), lucro presumido (presumed profit), or lucro arbitrado (arbitrated profit), where permitted. Qualifying small businesses may be eligible for Simples Nacional. Financial institutions and insurers can have different CSLL rates, so the historical 2018-19 sector rate must not be assumed current.
Historical corporate tax summary for 2018-19
| Income Category | Tax Rate |
|---|---|
| Corporate Income Tax | 15% |
| Surtax on companies with corporate taxable profits over BRL 240,000 | 10% |
| Social Contribution tax (non deductible) | 9% (20% for financial institutions, Private insurance companies and capitalization companies until 2018) |
| Effective Tax Rate | 34% |
Historical deductions, credits and regional incentives
The original article discussed social-security contributions, private pension contributions, court-ordered support, qualifying education and medical expenses, cultural incentives, a simplified annual deduction, regional corporate incentives and foreign-tax credits. These remain relevant categories, but availability, ceilings, documentation and tax-regime restrictions depend on the year and current legislation. Corporate business expenses are not automatically deductible merely because they were incurred; deductibility depends on the relevant rules and substantiation.
Official Brazilian tax resources
- Receita Federal: 2026 IRPF tables
- Receita Federal: IRPJ
- Receita Federal: CSLL
- Receita Federal: capital gains rates
- Law No. 15,270/2025 (official legislation)
This article provides general information, not individualized tax advice. Verify tax residency, assessment year, income category and the latest official rules before filing.