How Brazilian Income Tax Works — IRPF & INSS
Brazil's personal income tax (IRPF) is progressive from 0% to 27.5%, with a tax-free threshold of R$27,110/year (R$2,259.20/month). Social security (INSS) is also progressive from 7.5% to 14%, capped at a monthly ceiling of R$7,786.02 (max contribution ~R$909/month). Self-employed MEI pay a single fixed monthly DAS instead of standard rates. Corporations face an effective rate of ~34% combining IRPJ + adicional + CSLL.
| IRPF Rate | Annual income (2024) |
|---|---|
| 0% | Up to R$27,110 |
| 7.5% | R$27,111 – R$33,919 |
| 15% | R$33,920 – R$45,012 |
| 22.5% | R$45,013 – R$55,976 |
| 27.5% | Above R$55,976 |
| INSS Rate (employee) | Monthly salary band |
|---|---|
| 7.5% | Up to R$1,412/month |
| 9% | R$1,412.01 – R$2,666.68 |
| 12% | R$2,666.69 – R$4,000.03 |
| 14% | R$4,000.04 – R$7,786.02 (ceiling) |
- →INSS ceiling (teto): R$7,786.02/month — above this no additional INSS is collected; max contribution ~R$909/month
- →INSS is deductible from the IRPF taxable base — reducing the income on which tax is calculated
- →Dependent deduction: R$2,275.08 per dependent (spouse, child, parent) reduces the annual IRPF taxable base
- →Autônomo (self-employed): 20% INSS on declared income, capped at same R$7,786.02/month ceiling
- →MEI: fixed monthly DAS of ~R$77–R$82 (commerce ~R$77, services ~R$81) — valid for revenue under R$81,000/year
- →Corporate: IRPJ 15% + adicional 10% on profit above R$240,000/year + CSLL 9% = ~34% effective rate
- →File Declaração de Ajuste Anual at gov.br/receitafederal by May 31 — mandatory if income exceeds ~R$30,639/year
Frequently Asked Questions
What is MEI and who qualifies?
MEI (Microempreendedor Individual) is Brazil's simplest self-employment regime. You pay one fixed monthly DAS of around R$77–R$82 (the exact amount depends on activity type and the minimum wage), which covers INSS at 5% (giving you pension, maternity, and sick-pay rights), plus ICMS (commerce) or ISS (services). Annual revenue must be under R$81,000. MEI cannot have more than one employee. Register free at gov.br/mei using your CPF — you get a CNPJ and the right to issue notas fiscais.
When is the Brazilian income tax filing deadline?
The annual IRPF declaration (Declaração de Ajuste Anual) is typically due by May 31 of the year following the tax year — for example, the 2024 declaration is due May 31, 2025. Filing is mandatory if your 2024 income exceeded R$30,639.90, you received exempt income above R$200,000, had capital gains, or operated rural activities. Use the Programa IRPF desktop app or the Meu Imposto de Renda mobile app at e-CAC (gov.br/receitafederal).
How is INSS calculated — is it a flat rate or progressive?
Since 2020, Brazilian INSS is progressive — similar to income tax. Each band of monthly salary is taxed at the rate for that band: 7.5% on the first R$1,412, then 9% on the next slice, then 12%, then 14% up to the ceiling of R$7,786.02/month. Above the ceiling no additional INSS is due. The maximum monthly contribution is approximately R$909. This is then deducted from your gross salary before IRPF is calculated.
What is the difference between Simples Nacional and Lucro Presumido?
Simples Nacional is a simplified unified tax regime for small businesses (revenue up to R$4.8M/year) that combines IRPJ, CSLL, PIS, COFINS, ICMS and ISS into one monthly DAS payment at rates from 4% to 33% depending on revenue and activity. Lucro Presumido applies when revenue exceeds R$4.8M or is chosen for tax optimization — IRPJ (15% + 10% adicional) and CSLL (9%) are calculated on a statutory presumed profit margin. MEI is a subset of Simples Nacional for the smallest individual operators (revenue under R$81,000).