How it works
INSS is progressive (7.5% to 14%), each rate applying only to the slice of salary within its band, up to a ceiling of R$8,475.55. The income tax base is gross salary minus INSS, R$189.59 per dependent and court-ordered alimony — or the simplified monthly discount of R$607.20 if that is better. The monthly progressive table is applied and then the 2026 reduction (Law 15,270/2025): tax is zero for taxable income up to R$5,000 and partially reduced up to R$7,350.
2026 monthly income tax table
| Tax base | Rate | Deduction |
|---|---|---|
| Up to R$2,428.80 | Exempt | – |
| R$2,428.81 – R$2,826.65 | 7.5% | R$182.16 |
| R$2,826.66 – R$3,751.05 | 15% | R$394.16 |
| R$3,751.06 – R$4,664.68 | 22.5% | R$675.49 |
| Over R$4,664.68 | 27.5% | R$908.73 |
Examples (no dependents)
| Gross | INSS | Table tax | 2026 reduction | IRRF | Net |
|---|---|---|---|---|---|
| R$3,000.00 | R$248.60 | R$0.00 | R$0.00 | R$0.00 | R$2,751.40 |
| R$5,000.00 | R$501.51 | R$312.89 | R$312.89 | R$0.00 | R$4,498.49 |
| R$6,000.00 | R$641.51 | R$564.85 | R$179.75 | R$385.10 | R$4,973.38 |
| R$7,350.00 | R$830.51 | R$884.13 | R$0.00 | R$884.12 | R$5,635.36 |
| R$10,000.00 | R$988.09 | R$1,569.54 | R$0.00 | R$1,569.54 | R$7,442.36 |
Limitations
The 13th salary, vacation pay, transport vouchers and health plans are not included. FGTS (8%) is paid by the employer on top of your salary.
Frequently asked questions
Who is exempt from income tax in Brazil in 2026?
Employees with taxable income up to R$5,000 a month pay no IRRF from January 2026.
What is the INSS ceiling in 2026?
R$8,475.55 a month.