2026 Income Tax: New Table, Rates & Calculator

The 2026 Income Tax brings important changes to the rate table that directly impact the monthly deduction from Brazilian workers’ salaries. With the new expanded exemption bracket and rate adjustments, it’s essential to understand how the calculation works to better plan your finances.

The Federal Revenue Service updated the tax brackets to keep pace with inflation and provide greater tax fairness. These changes affect everyone from minimum wage earners to professionals with higher incomes.

2026 Income Tax Table

Income brackets and rates

The 2026 IRPF (income tax) table establishes five progressive tax brackets. The higher the income, the higher the rate applied to the excess amount:

Exemption limit

The exemption limit was raised to R$ 2,259.20 monthly in 2026. This means that those earning up to this amount don’t pay withholding income tax.

Compared to the previous year, there was an increase of approximately 4.8% in the exemption bracket, benefiting millions of Brazilian taxpayers.

Deductible amount

The deductible amount is a fixed value subtracted from the calculation to avoid double taxation between brackets. It makes the calculation simpler and ensures that progressivity works correctly.

Example: Salary of R$ 3,500 → 15% rate → gross tax of R$ 525 → minus deductible of R$ 381.44 → final IR of R$ 143.56

2026 IRPF Updates

Changes in rates

The IR rates maintained the same percentages as 2025, but the income brackets were readjusted. The main change was the increase in the calculation base across all brackets.

The government prioritized expanding the exemption bracket instead of changing rates, especially benefiting the lower middle class.

Table update

The table was corrected based on the accumulated IPCA (inflation index) of 2025, ensuring that inflation doesn’t erode taxpayers’ purchasing power. This adjustment is fundamental to maintaining tax equity.

The update took effect in January 2026 and applies to both payroll deductions and annual declarations.

How to calculate salary deduction

Progressive calculation

The IR calculation is progressive, meaning each income bracket has its own rate. You don’t pay the maximum rate on your entire salary, only on the portion that exceeds each limit.

To calculate correctly, follow these steps:

• Identify your calculation base (salary minus INSS (social security) and dependents)
• Find your bracket in the table
• Apply the formula: (Base × Rate) - Deductible amount

Permitted deductions

Before applying the table, you can deduct from the calculation base:

• R$ 189.59 per dependent
• INSS (social security) contribution (limited to the ceiling)
• Court-ordered alimony
• Private pension contributions (up to 12% of income)

Practical example: Gross salary R$ 4,000 → INSS R$ 436.35 → 1 dependent R$ 189.59 → Base: R$ 3,374.06 → IR: R$ 125.11

Use our Income Tax calculator to make precise simulations with your salary.

Practical calculation examples

R$ 3,000 salary

A professional with a R$ 3,000 salary will have the following calculation:

• Base after INSS: approximately R$ 2,760
• Bracket: 2nd (7.5% rate)
• Monthly IR: R$ 37.56

R$ 5,000 salary

For those earning R$ 5,000 monthly:

• Base after INSS: approximately R$ 4,445
• Bracket: 4th (22.5% rate)
• Monthly IR: R$ 337.36

R$ 8,000 salary

Professionals with R$ 8,000 salary:

• Base after INSS: approximately R$ 7,285 (considering INSS ceiling)
• Bracket: 5th (27.5% rate)
• Monthly IR: R$ 1,103.38

Strategies to reduce IR

Legal deductions

Maximize your legal deductions to reduce the calculation base:

• Declare all eligible dependents
• Contribute to private pension (PGBL/VGBL)
• Keep medical expenses organized for annual declaration
• Consider court-ordered alimony when applicable

Tax planning

Efficient tax planning can result in significant savings:

• Anticipate income or expenses as convenient
• Evaluate investments with favorable taxation
• Consider the MEI (micro-entrepreneur) regime if you’re an entrepreneur
• Organize documents throughout the year to maximize deductions

For self-employed professionals, evaluating the tax regime can generate substantial savings compared to traditional employment.

Frequently Asked Questions

How do I know which IR bracket I fall into?

Calculate your taxable base by subtracting INSS deduction and R$ 189.59 per dependent from your gross salary. Compare the result with the 2026 IRPF table to find your corresponding bracket and rate.

What changed in the 2026 Income Tax table?

The main change was the increase in the exemption bracket to R$ 2,259.20 and the adjustment of all other brackets. The rates (7.5%, 15%, 22.5% and 27.5%) remained the same, but applied to higher amounts.

Can I deduct education expenses from monthly IR?

No. Education expenses can only be deducted in the annual IR declaration, not in the monthly payroll deduction. For salary purposes, only INSS and dependents reduce the calculation base.

How do I calculate IR for someone with multiple jobs?

Add all taxable income and apply the table to the total. If withholding has already occurred at any source, it will be offset in the annual declaration. The combined calculation may result in additional tax due.

Do retirees pay Income Tax the same as workers?

Yes, retirees follow the same 2026 IRPF table. However, those over 65 have two exemption portions (R$ 1,903.98 monthly), resulting in lower taxation for this age group.

What’s the difference between withholding tax and annual declaration?

Withholding tax is an estimated monthly deduction based on salary. The annual declaration makes the final adjustment, considering all income, deductions and dependents for the year, which may result in a refund or tax due.

How do I use the IR calculator to simulate different scenarios?

Access our Income Tax calculator and enter your gross salary, number of dependents and other deductions. The tool will automatically calculate the monthly deduction and show your effective rate.