Income Tax 2025: New Rates & Complete Calculation Guide
Learn the new 2025 Income Tax brackets, calculate your monthly discount, and discover strategies to reduce taxes. Complete guide with examples.
Income Tax 2025 brings new tax brackets and updated values for monthly salary deductions. The changes directly affect your pocket, whether through automatic payroll deductions or the annual tax return.
In this guide, you’ll understand how the new table works, calculate how much you’ll pay in income tax, and use strategies to reduce your tax liability.
2025 Income Tax Table
New tax brackets
The 2025 income tax table for monthly deductions (calendar year 2025) has five income brackets, with rates ranging from 0% to 27.5%:
| Bracket | Monthly Calculation Base | Rate | Amount to Deduct |
|---|---|---|---|
| 1st | Up to R$ 2,259.20 | Exempt | - |
| 2nd | R$ 2,259.21 to R$ 2,826.65 | 7.5% | R$ 169.44 |
| 3rd | R$ 2,826.66 to R$ 3,751.05 | 15% | R$ 381.44 |
| 4th | R$ 3,751.06 to R$ 4,664.68 | 22.5% | R$ 662.77 |
| 5th | Above R$ 4,664.68 | 27.5% | R$ 896.00 |
Exemption amounts
The exemption bracket for 2025 covers salaries up to R$ 2,259.20 monthly. This means workers with gross income up to this amount don’t pay Income Tax.
For dependents, the monthly deduction is R$ 189.59 per person. This deduction reduces the income tax calculation base.
Example: R$ 3,000 salary with 1 dependent → Calculation base: R$ 3,000 - R$ 189.59 = R$ 2,810.41
How to calculate quickly
Use our Income Tax calculator to get the exact result in seconds. The tool considers all deductions and automatically applies the 2025 table.
How to calculate income tax owed
Calculation base
Income tax calculation starts with the calculation base, which is your gross income minus allowed deductions:
- INSS (social security) contribution: Limited to a ceiling of R$ 908.85 monthly
- Dependents: R$ 189.59 per dependent
- Alimony: Full amount paid by court order
Allowed deductions
The main monthly deductions are:
- Mandatory INSS (up to the ceiling)
- Dependents (spouse, children up to 21, university students up to 24)
- Court-ordered alimony
- Private pension (limited to 12% of gross income)
Rates by bracket
After defining the calculation base, apply the corresponding rate and subtract the amount to deduct:
Practical example: Gross salary R$ 4,000, no dependents
- Calculation base: R$ 4,000 - INSS (R$ 436.35) = R$ 3,563.65
- Bracket: 3rd (15%) - Amount to deduct: R$ 381.44
- Income tax owed: (R$ 3,563.65 × 15%) - R$ 381.44 = R$ 153.10
Payroll tax vs tax return
Withholding at source
The monthly deduction from salary uses the current progressive table. This amount is an advance payment of tax owed for the year.
Withholding only considers:
- Monthly salary
- Dependents reported to the company
- Mandatory social security contribution
Annual adjustment
In the annual tax return (filed in 2026, base year 2025), you’ll settle accounts:
- If you paid more income tax during the year: receive refund
- If you paid less income tax during the year: pay difference
The return allows including more deductions:
- Medical expenses (no limit)
- Education (limit of R$ 3,561.50 per person)
- Donations (limit of 6% of tax owed)
- Private pension (up to 12% of annual gross income)
Main differences
| Aspect | Monthly Income Tax | Annual Return |
|---|---|---|
| Deductions | Limited | More comprehensive |
| Calculation base | Monthly | Annual |
| Result | Fixed discount | Refund or payment |
Carnê-leão 2025
When to collect
Carnê-leão is mandatory for income without withholding at source that exceeds R$ 2,259.20 monthly.
Situations requiring carnê-leão:
- Property rentals
- Services provided as freelancer
- Alimony received
- Foreign income
- Rural activities
How to calculate
Carnê-leão uses the same table as monthly income tax. The difference is you calculate and collect it yourself by the last business day of the following month.
Example: Received R$ 3,500 in rent in January
- Income tax owed: (R$ 3,500 × 15%) - R$ 381.44 = R$ 143.56
- Due date: Last business day of February
Payment code
Use code 0190 on the DARF form to collect carnê-leão. Late payment incurs a 0.33% daily fine, limited to 20%.
Practical simulation
Let’s calculate income tax for different scenarios using the 2025 table:
Example 1: R$ 5,000 salary
- Calculation base: R$ 5,000 - R$ 652.50 (INSS) = R$ 4,347.50
- Bracket: 4th (22.5%)
- Income tax owed: (R$ 4,347.50 × 22.5%) - R$ 662.77 = R$ 315.41
Example 2: R$ 8,000 salary with 2 dependents
- Dependents: 2 × R$ 189.59 = R$ 379.18
- Calculation base: R$ 8,000 - R$ 908.85 (INSS ceiling) - R$ 379.18 = R$ 6,711.97
- Bracket: 5th (27.5%)
- Income tax owed: (R$ 6,711.97 × 27.5%) - R$ 896.00 = R$ 949.79
Example 3: Freelancer R$ 4,500 monthly
- Carnê-leão: R$ 4,500 × 22.5% - R$ 662.77 = R$ 349.73
- Payment: By last business day of following month
Tips to reduce income tax
Maximize legal deductions
- Health insurance: Include dependents to increase medical deduction
- Education: Use the R$ 3,561.50 limit per family member
- Private pension: Contribute up to 12% of annual gross income
- Donations: Donate up to 6% of tax owed to approved funds
Organize receipts
Keep all receipts for:
- Medical consultations, exams, and treatments
- School tuition and professional courses
- Supplementary social security contributions
- Alimony paid
Use the calculator
Our Income Tax calculator simulates different scenarios and shows the real impact of deductions on your budget.
Plan your income
If possible, distribute extra income throughout the year to avoid jumping tax brackets. This is especially important for 13th salary and vacation pay.
Frequently Asked Questions
What is the income tax exemption bracket in 2025?
Workers with monthly income up to R$ 2,259.20 are exempt from Income Tax. Above this amount, the progressive table with rates from 7.5% to 27.5% applies.
How to calculate income tax with dependents?
For each dependent, deduct R$ 189.59 from the calculation base before applying the income tax table. Dependents include spouse, children up to 21 (or 24 if university students), and parents over 65 with no income.
What’s the difference between monthly income tax and carnê-leão?
Monthly income tax is automatically deducted from salary by the company. Carnê-leão is collected by the taxpayer for income without withholding at source, such as rent and freelance services.
When should I collect carnê-leão?
Carnê-leão must be paid by the last business day of the following month after receiving income. For example: January income must be collected by the last business day of February, using DARF code 0190.
What happens if I don’t pay carnê-leão?
Late payment incurs a 0.33% daily fine on the amount owed, limited to 20% of the tax. Additionally, Selic interest applies from the first day of delay.
Can I deduct health insurance from monthly income tax?
No. Medical expenses and health insurance can only be deducted in the annual return. In monthly deductions, only mandatory INSS, dependents, and court-ordered alimony are considered.
Is it worth contributing to private pension?
Contributing to private pension (PGBL/VGBL) allows deducting up to 12% of annual gross income in the income tax return, significantly reducing tax owed. It’s an efficient strategy for those in higher tax brackets.