What is Income Tax?
The Income Tax (IR) is a tax levied by the federal government on individuals’ income. The more you earn, the more you pay (progressive system). Every year, between March and May, you need to file your Income Tax Return.
Progressive Table 2025 (salaries)
| Monthly Income Range | Tax Rate |
|---|
| Up to R$ 2,259.20 | Exempt |
| R$ 2,259.21 to R$ 2,826.65 | 7.5% |
| R$ 2,826.66 to R$ 3,751.05 | 15% |
| R$ 3,751.06 to R$ 4,664.68 | 22.5% |
| Above R$ 4,664.68 | 27.5% |
Income Tax on Investments
Regressive Table (fixed income, funds)
| Term | Tax Rate |
|---|
| Up to 180 days | 22.5% |
| 181 to 360 days | 20% |
| 361 to 720 days | 17.5% |
| Above 720 days | 15% |
Income Tax-Exempt Investments
- Savings account
- LCI and LCA
- Stock dividends
- FIIs income (individuals)
- Sale of stocks up to R$ 20,000/month
Tips to Pay Less Income Tax (legally)
- Invest in LCI/LCA (exempt)
- Keep investments for more than 2 years (lower tax rate)
- Use the PGBL pension plan (deducts up to 12% of income)
- Declare all medical and education expenses
- Organize receipts throughout the year
