Brazil Tax Rates 2026: Personal Income Tax, Corporate Tax, Capital Gains & Social Security

Brazil Personal Income Tax Rates - 2026

From January 2026, the monthly IRPF progressive table published by Receita Federal is:

The top marginal rate remains 27.5%. However, the effective liability in 2026 can be lower because of the new reduction described below.

2026 Income-Tax Reduction: Effective Exemption up to R$5,000 per Month

From January 2026, Brazil applies a reduction to the tax calculated under the monthly progressive table. The reduction can reduce the income tax to zero for monthly taxable income up to R$5,000. For taxable income above R$5,000 and up to R$7,350, the reduction decreases progressively. No reduction applies once monthly taxable income exceeds R$7,350.

For the annual adjustment relating to calendar year 2026, the legislation likewise provides a reduction that can eliminate annual income tax on taxable income up to R$60,000, with a declining reduction up to R$88,200.

Corporate Income Tax in Brazil - IRPJ and CSLL

Brazilian companies generally determine federal corporate income tax under the lucro real, lucro presumido or lucro arbitrado regimes, depending on the applicable rules.

For an ordinary company subject to the 9% CSLL rate, the combined headline burden on profit can therefore reach approximately 34% where the 10% IRPJ surtax fully applies. This is not a single 34% tax rate: it is the combined effect of IRPJ, the additional IRPJ and CSLL.

Capital Gains Tax in Brazil

Individuals generally pay income tax on taxable capital gains at progressive rates based on the amount of the gain:

Specific exemptions and special regimes may apply depending on the asset and transaction.

Taxation of Dividends from 2026

The former general statement that Brazilian dividends are always exempt is no longer accurate for 2026. Under Law No. 15,270/2025, when the same Brazilian company pays more than R$50,000 in dividends in one month to the same resident individual, the total payment is generally subject to 10% IRRF withholding, subject to statutory exceptions and transition rules.

Dividends paid, credited, delivered or remitted abroad are also generally subject to 10% withholding tax from 2026, subject to the applicable legislation and exceptions.

Brazil also introduced an annual minimum-tax mechanism for high-income individuals, which can become relevant where annual income exceeds the statutory threshold.

Withholding Tax on Payments to Nonresidents

Brazilian-source income paid to nonresidents is generally subject to final withholding tax, with the rate depending on the nature of the payment and the recipient's jurisdiction. Important examples include:

Tax treaties and specific domestic provisions can alter the result, and some remittances may also involve other Brazilian taxes or contributions.

Tax Residence in Brazil

A person can become tax resident in Brazil immediately in certain circumstances, including entry with permanent residence status or entry under a temporary visa to work under a Brazilian employment relationship. A person entering under a qualifying temporary status without an earlier residence-triggering event generally becomes resident upon completing 184 days of presence, consecutive or otherwise, within a 12-month period.

Residents are generally subject to Brazilian income tax on worldwide income, while nonresidents are generally taxed on Brazilian-source income under source and withholding rules.

Personal Deductions and Allowances

Brazilian individual income tax continues to permit statutory deductions and, where eligible, a simplified deduction mechanism. For the 2026 taxation table, Receita Federal lists an annual dependent deduction of R$2,275.08, an annual education-expense limit of R$3,561.50, and an annual simplified deduction limit of R$17,640. Conditions and eligibility rules apply.

Social Security Contributions (INSS) - 2026

From January 2026, employee, domestic employee and casual-worker INSS contributions use progressive salary bands:

Employer payroll charges cannot accurately be represented by one universal percentage because the total depends on employer classification, occupational-risk contribution, third-party contributions, sectoral rules and other payroll charges. The historic statement that every employer pays 36.8% should therefore not be used as a current general rule.

Corporate Tax Losses and Other Deductions

Brazilian corporate tax losses can generally be carried forward without a fixed expiry period, but use against future taxable profit is subject to statutory limitations, including the well-known 30% limitation applicable under the relevant profit-tax rules. Depreciation, thin-capitalisation, transfer-pricing and related-party deductions are governed by separate statutory rules and should be reviewed according to the taxpayer's facts and the current legislation.

Brazil Individual Income Tax Return Deadline - 2026

For the 2026 filing season, Receita Federal set the individual income tax return filing period from 23 March 2026 through 29 May 2026. A return filed late may be subject to a late-filing penalty.

Brazil's individual income-tax return generally reports the preceding calendar year's income and assets. Taxpayers should verify each year's filing instruction because the exact dates, filing thresholds and reporting rules are established annually.

Official Brazil Tax Information