Income Tax 2025: Complete Calculation Guide
Learn how to calculate Income Tax 2025 step by step. Updated tables, tax brackets, deductions, and practical examples for your IRPF declaration.
Income Tax 2025 brings important changes that every taxpayer needs to know. The annual IRPF (income tax) declaration remains mandatory for millions of Brazilians, but with new rules and updates to the progressive tax table.
Understanding how to correctly calculate IR avoids errors in the declaration and future problems with the Federal Revenue Service. In this guide, you’ll learn the complete step-by-step calculation process.
What is Income Tax 2025
Individual Income Tax (IRPF) is a federal tax levied on Brazilians’ annual earnings. In 2025, it maintains its progressive nature, where higher earners pay higher percentages.
The calculation basis considers all taxable income received in the previous year, minus permitted legal deductions.
Main changes in 2025
The exemption threshold remains at R$ 2,112.00 monthly, equivalent to R$ 25,344.00 annually. This is the main adjustment demand that wasn’t changed by the government.
Tax rates and brackets also remained unchanged from the previous year. The focus of changes is on declaration rules and deadlines.
Who must file
Taxpayers who fall into at least one of these situations are required to file IR 2025:
- Received taxable income above R$ 30,639.90 in 2024
- Obtained capital gains from asset or rights transfers
- Conducted stock exchange operations above R$ 40,000.00
- Had exempt income above R$ 200,000.00
- Owned assets and rights above R$ 800,000.00 on 12/31/2024
- Engaged in rural activities with annual gross revenue exceeding R$ 153,199.50
IR 2025 Table
Tax rates and income brackets
The IRPF 2025 progressive table maintains the same tax brackets:
| Annual Calculation Base | Rate | Amount to Deduct |
|---|---|---|
| Up to R$ 25,344.00 | Exempt | - |
| From R$ 25,344.01 to R$ 33,792.00 | 7.5% | R$ 1,900.80 |
| From R$ 33,792.01 to R$ 45,072.00 | 15% | R$ 4,434.00 |
| From R$ 45,072.01 to R$ 56,712.00 | 22.5% | R$ 7,812.00 |
| Above R$ 56,712.00 | 27.5% | R$ 10,647.60 |
Calculation base
The calculation base consists of total taxable income minus legal deductions. This amount determines which tax bracket the taxpayer falls into.
It’s important to distinguish between taxable income (salaries, rent, pensions) and exempt income (FGTS (severance fund), unemployment insurance, some types of compensation).
How to calculate IR step by step
Taxable income
The main income types that compose the calculation base include:
- Salaries, wages and 13th salary
- Property rental income
- INSS (social security) pensions and benefits
- Taxable financial investment returns
- Partners’ pro-labore
- Self-employment income
Permitted deductions
Legal deductions directly reduce the tax calculation base:
- Dependents: R$ 2,275.08 per dependent
- Medical expenses: no limit (self and dependents)
- Education: up to R$ 3,561.50 per person (self and dependents)
- Social security contributions: INSS and private pension up to R$ 14,664.68
- Alimony: full court-determined amount
Tax due calculation
The calculation process follows this sequence:
- Add all taxable income for the year
- Subtract permitted deductions to obtain the calculation base
- Apply the progressive table to the calculation base
- Subtract IR withheld at source during the year
- The result indicates whether there’s tax to pay or receive as refund
Use our income tax calculator to perform this calculation automatically and accurately.
Practical calculation examples
Example 1: Employee with dependent
Situation: João received R$ 60,000.00 in salary, has 1 dependent, paid R$ 2,000.00 in health plans and R$ 1,500.00 in education.
Calculation: Base = R$ 60,000 - R$ 2,275.08 - R$ 2,000 - R$ 1,500 = R$ 54,224.92
IR due: R$ 54,224.92 × 22.5% - R$ 7,812 = R$ 4,388.61
Example 2: Exempt taxpayer
Situation: Maria received R$ 24,000.00 in pension, no dependents.
Result: Since it’s below R$ 25,344.00, she’s exempt from income tax.
Example 3: Self-employed professional
Situation: Carlos had income of R$ 80,000.00, spent R$ 5,000.00 on health and contributed R$ 8,000.00 to pension.
Base: R$ 80,000 - R$ 5,000 - R$ 8,000 = R$ 67,000.00
IR due: R$ 67,000 × 27.5% - R$ 10,647.60 = R$ 7,777.40
Declaration filing deadline
The IRPF 2025 declaration must be filed between March and May 2025. The Federal Revenue Service hasn’t yet announced exact dates, but traditionally the deadline is:
- Start: first half of March
- End: last business day of May
- Late penalty: minimum R$ 165.74
Refund acceleration
Those who file their declaration in the first days have priority in receiving refunds. The first batches are paid as early as May and June.
Tips to avoid audit red flags
Organize documentation
Keep all receipts organized by category:
- Income statements from all paying sources
- Medical and dental receipts
- Education expense receipts
- Social security contribution statements
- Purchase and sale receipts for assets
Check data before sending
- Dependents’ CPF must be correct and active
- Values must match received statements
- Exempt income cannot be in the calculation base
- Deductions must have documentary proof
Use the official program
The Federal Revenue Service program has automatic validations that identify inconsistencies before submission. Avoid third-party programs for official transmission.
Declare omitted income
The Revenue Service cross-references data with various sources. Undeclared income is easily identified and results in heavy fines.
Frequently Asked Questions
What is the IR exemption threshold value in 2025?
The exemption threshold remains at R$ 2,112.00 monthly or R$ 25,344.00 annually. Those who received up to this amount don’t pay income tax or need to file for this reason.
How do I calculate IR due when I have multiple income sources?
Add all taxable income from all sources, apply permitted deductions and use the progressive table on the total. Then subtract all IR withheld at source during the year.
Can I deduct medical expenses of any amount?
Yes, there’s no limit for medical expense deductions for yourself and dependents. Include consultations, exams, hospitalizations, health plans and prescription medications.
How much can I deduct per dependent in 2025?
The deduction amount per dependent is R$ 2,275.08 per person. This includes children up to 21 years old, spouse without own income and other legal dependents.
What happens if I don’t file within the deadline?
The late penalty is 0.33% per month on tax due, limited to 20% of the tax. The minimum penalty is R$ 165.74, even for those who don’t owe tax.
How do I know if I’ll receive a refund or pay tax?
Compare the IR due (calculated in the declaration) with the IR withheld during the year. If they withheld more, you receive a refund. If they withheld less, you must pay the difference.
Can I use the pre-filled declaration in 2025?
Yes, the Federal Revenue Service provides a pre-filled declaration with data it already has about the taxpayer. Always check that the information is complete and correct before sending.