Income Tax 2025: Calculation Table and Step-by-Step Guide
Learn how to calculate Income Tax 2025 with updated rates from exempt to 27.5%. Complete table, examples, and tips to pay less tax.
Income Tax 2025 follows the same rules as the previous year’s declaration, but with inflation-adjusted amounts. The IRPF (income tax) progressive table continues with brackets ranging from exempt to 27.5% for the highest incomes.
For those who receive salaries or have other income sources, understanding how to correctly calculate IR prevents surprises when filing. The calculation considers not only your income but also legally permitted deductions.
What is Income Tax
Individual Income Tax (IRPF) is a federal tax levied on income received during the year. It works with a progressive table — the higher the income, the higher the applied rate.
The tax applies to salaries, rent, investments, pensions, and other sources of taxable income. Even those who don’t need to file may have IR withheld at source by their employer.
Who must file
The filing obligation in 2025 follows specific income and asset criteria. The main ones are:
- Taxable income above R$ 30,639.90 per year
- Tax-exempt income above R$ 200,000.00
- Capital gains or stock market operations
- Ownership of assets and rights above R$ 800,000.00
Example: Someone who earned R$ 3,000 monthly (R$ 36,000 annually) must file, as they exceeded the R$ 30,639.90 limit.
2025 filing deadline
The Federal Revenue Service hasn’t yet announced the official dates for 2025. Traditionally, the deadline runs from March to May, with about 3 months for submission.
The declaration generator program is usually released in early March. Those who file in the first batches have priority in refund payments.
2025 IR Table
The 2025 IRPF table maintains the same progressive bracket structure. Rates vary according to monthly taxable income.
Rates and income brackets
| Tax Base (R$) | Rate | Amount to Deduct (R$) |
|---|---|---|
| Up to 2,259.20 | Exempt | - |
| 2,259.21 to 2,826.65 | 7.5% | 169.44 |
| 2,826.66 to 3,751.05 | 15% | 381.44 |
| 3,751.06 to 4,664.68 | 22.5% | 662.77 |
| Above 4,664.68 | 27.5% | 896.00 |
Amount to deduct
The amount to deduct simplifies the progressive calculation. Instead of calculating each bracket separately, you apply the total rate and subtract the corresponding amount.
Example: R$ 4,000 salary → IR = (4,000 × 22.5%) - 662.77 = R$ 237.23
How to calculate step by step
Monthly IR calculation follows a logical sequence. First you identify taxable income, then apply legal deductions.
Taxable income
The main income sources subject to withholding tax are:
- Salaries and 13th salary
- Pensions and retirement benefits (taxable portion)
- Rent received
- Investment returns (CDs, LCI/LCA with shorter terms)
Permitted deductions
Deductions reduce the tax calculation base. The main ones are:
- INSS (social security): R$ 908.85 maximum monthly (2025)
- Dependents: R$ 189.59 per dependent
- Court-ordered alimony
- Medical expenses (in annual declaration)
- Education: up to R$ 3,561.50 per person (annual)
Basic calculation: Gross salary → (-) INSS → (-) Dependents → (-) Alimony = IR tax base
Practical calculation example
Let’s calculate the IR for a R$ 5,000 monthly salary with one dependent:
- Gross salary: R$ 5,000.00
- (-) INSS: R$ 550.93 (11%)
- (-) Dependent: R$ 189.59
- Tax base: R$ 4,259.48
Applying the table:
- Bracket: R$ 4,259.48 (22.5% rate)
- Calculation: (4,259.48 × 22.5%) - 662.77
- IR due: R$ 295.61
To make this calculation practically, use our income tax calculator that automatically applies all deductions.
Tips to pay less IR
Maximize legal deductions
- Health insurance: can deduct 100% of medical expenses
- Private pension: up to 12% of annual gross income
- Education: higher education, technical courses, and languages
Invest in tax-exempt products
- LCI/LCA: exempt for individuals
- CRA/CRI: agribusiness and real estate certificates
- Incentive debentures: infrastructure and sanitation
Plan your investments
- Fixed income: prefer longer terms (lower rate)
- Stocks: hold for more than 1 year
- Real estate funds: dividends exempt up to R$ 200,000
Frequently Asked Questions
How do I know if I need to file IR in 2025?
You must file if you had taxable income above R$ 30,639.90 in 2024, or if you own assets above R$ 800,000, or had capital gains. The limit applies to the sum of all income sources for the year.
What’s the difference between withholding tax and declaration tax?
Withholding tax is deducted monthly by the employer as advance payment. In the annual declaration, you settle accounts: if you paid more than owed, you get a refund; if you paid less, you need to pay the difference.
How to calculate IR on 13th salary?
The 13th salary has separate calculation. Apply the IR table on (13th salary ÷ number of months worked × 12), then adjust for the proportional value to actual months.
Do retirees pay IR the same as workers?
Retirees over 65 have an additional exemption of R$ 24,751.74 per year. The remainder follows the normal table. Disability retirees have specific rules depending on the cause.
Can I deduct gym and physical therapy expenses?
Gym is not deductible. Physical therapy yes, provided it’s prescribed by a doctor and has a receipt from a licensed physical therapist. This also applies to psychologist, nutritionist, and other health professionals.
What happens if I don’t file IR by the deadline?
The minimum fine is R$ 165.74, potentially reaching 20% of the tax owed. Additionally, you’re prevented from obtaining regular CPF, passport, bank loans, and competing for public positions.
Is it worth filing the complete or simplified declaration?
Compare both options: simplified gives a standard 20% discount (limited to R$ 16,754.34), while complete allows deducting actual expenses. If your deductions exceed the standard discount, choose complete.