Brazil Tax Calculator (2026)

Income tax rates and take-home pay for Brazil

Brazil Income Tax Brackets (2024-2025)

Bracket Income Range Rate
ExemptR$0 - R$27,1100.0%
First BracketR$27,110 - R$33,9207.5%
Second BracketR$33,920 - R$45,01315.0%
Third BracketR$45,013 - R$55,97622.5%
Fourth BracketR$55,976+27.5%

National Institute of Social Security (INSS)

Bracket Income Range Rate
Tier 1R$0 - R$16,9447.5%
Tier 2R$16,944 - R$32,0009.0%
Tier 3R$32,000 - R$48,00012.0%
Tier 4R$48,000 - R$93,43214.0%

Capped at R$10,906 per year

Key Facts

Tax Year

2024-2025

Currency

BRL

Top Rate

27.5%

Brackets

5 brackets

Tax-Free Threshold

R$27,110

Social Contributions

1 item

Assumptions

  • · Tax brackets and social security limits were annualized from the monthly tables provided in the source (multiplied by 12).
  • · Calculations use the progressive INSS rates effective January 2024.
  • · Employment Income Tax table reflects the February 2024 update.
  • · The optional 20% standard annual deduction is included as a primary income-based deduction.

Frequently asked questions

How much income tax do I pay in Brazil?

Brazil uses a progressive income tax system with five tax brackets ranging from 0% (exempt income up to 27,110.40 BRL annually) to 27.5% on income above 55,976.16 BRL. You also get a standard 20% annual deduction on your gross income, capped at a maximum of 16,754.34 BRL, which reduces your taxable income before calculating tax.

What is INSS and how much do I need to contribute?

INSS (National Institute of Social Security) is Brazil's mandatory social security contribution for employees, deducted from your gross salary. Contribution rates are progressive, ranging from 7.5% on the first tier (up to 16,944 BRL annually) to 14% on higher earnings, with a maximum annual contribution cap of 10,906.20 BRL.

Are INSS contributions deductible from my income tax?

Yes, INSS contributions are fully deductible from your gross income before calculating income tax. This means your social security payments reduce your taxable income, lowering the amount of income tax you owe.

What's the difference between my gross salary and take-home pay in Brazil?

Your take-home pay is reduced by INSS contributions (which are deductible from income tax) and then by income tax itself, calculated on your deduction-adjusted income. For example, someone earning 50,000 BRL annually would pay INSS contributions plus income tax at the applicable bracket rates, resulting in significantly lower net pay.

Does tax vary by state or region in Brazil?

The income tax brackets and INSS rates provided are national and apply uniformly across Brazil; there are no additional state or regional income taxes. However, you may have other local taxes or obligations depending on your specific state or municipality, so it's worth checking local requirements for your area.

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