Income Tax Guide 2024: Complete Guide for Brazil

The Individual Income Tax Declaration (IRPF - income tax) is an annual obligation that millions of Brazilians must fulfill with the Federal Revenue Service. If you’re preparing to file your IR in 2024, this complete guide will clarify all your doubts about documentation, deadlines, deductions, and how to correctly calculate the tax owed.

Each year, the rules may undergo minor changes, and it’s essential to stay updated to avoid problems with the Tax Authorities. In this article, you’ll find precise information about the IRPF 2024 declaration, including who must file, necessary documents, and how to use our IRPF calculator to simulate your tax.

What is the Income Tax Declaration

The Individual Income Tax Declaration is an official document where taxpayers inform the Federal Revenue Service of all their income, deductible expenses, assets, and rights obtained during the previous calendar year. For the IRPF 2024 declaration, you must report data from 2023.

The main objective is to allow the Federal Revenue Service to verify if the tax withheld at source during the year was sufficient to cover the amount owed, or if there’s a difference to pay or refund to the taxpayer.

Who must file in 2024

Taxpayers who fall into at least one of the following conditions are required to file the IRPF 2024 declaration:

Taxable income: Those who received taxable income exceeding R$ 28,559.70 in 2023. This includes salaries, pensions, rent, profit-sharing, and other income subject to taxation.

Exempt income: Those who received exempt, non-taxable, or exclusively source-taxed income exceeding R$ 40,000.00, such as FGTS (severance fund), unemployment insurance, or savings account income.

Capital gains: Those who obtained capital gains from the sale of assets or rights or conducted operations on stock exchanges, commodities, futures, and similar markets.

Rural activity: Those who had gross revenue from rural activity exceeding R$ 142,798.50 or wish to offset rural activity losses.

Assets and rights: Those who possessed assets or rights with a total value exceeding R$ 300,000.00 on December 31, 2023.

Brazilian residence: Those who became residents of Brazil in any month of 2023 and remained in that condition until December 31.

Filing deadline

The IRPF 2024 declaration must be filed by May 31, 2024. The deadline traditionally begins in March, but the exact opening date is announced by the Federal Revenue Service at the beginning of the year.

It’s important not to wait until the last minute, as late filing incurs a minimum fine of R$ 165.74 or 1% per month on the tax owed, limited to 20% of the tax.

Required documents

To file your declaration correctly, you need to organize various documents that prove your income, expenses, and assets.

Taxable income

Income statements: Request the document from all your employers, banks, brokerages, and institutions that paid income during 2023. The statement contains essential data such as total amount received, IRPF withheld at source, and social security contributions.

Rent received: Keep all receipts of rent received, including taxes paid on these amounts.

Alimony: If you receive alimony, maintain receipts of all amounts received.

Business activity: For those who own a business or work as freelancers, organize all issued invoices and taxes paid.

Allowed deductions

Medical expenses: Keep all invoices and receipts for consultations, exams, treatments, health insurance, medications, and hospital expenses for yourself and your dependents.

Education expenses: Preserve receipts for school tuition, technical courses, higher education, and graduate courses, limited to R$ 3,561.50 per person in 2023.

Private pension: Keep statements of contributions to PGBL and life insurance with survival coverage.

Donations: Maintain receipts of donations to funds controlled by federal, state, or municipal governments.

Assets and rights

For each asset or right you owned on December 31, 2023, you must provide:

• Detailed description
• Location
• Acquisition value
• Status on 12/31/2022 and 12/31/2023

This includes real estate, vehicles, financial investments, stocks, investment fund shares, checking accounts, savings accounts, and any other valuable asset.

Step-by-step filing guide

Program download

The Federal Revenue Service provides free software for preparing the declaration. You can download it from the Federal Revenue Service’s official website or use the online version. Mobile apps are also available for tablets and smartphones.

Make sure to download only from the official website to avoid security issues or outdated versions.

Filling out the forms

“Taxpayer identification” form: Fill in your personal data, profession, CPF, and contact information. Choose between complete or simplified declaration.

“Dependents” form: Include spouse, children, and other dependents who meet Federal Revenue Service criteria.

“Taxable income received from legal entities” form: Report all income shown on received statements.

“Exempt and non-taxable income” form: Declare amounts such as FGTS, unemployment insurance, indemnities, and other income not subject to tax.

“Payments made” form: Report deductible expenses such as health, education, private pension, and alimony paid.

“Assets and rights” form: List all your assets with detailed values and descriptions.

Checking for issues

Before transmitting your declaration, use the program’s “Check issues” function. It identifies possible errors or inconsistencies that may result in your declaration being held for detailed review.

After correcting all issues, transmit your declaration and keep the delivery receipt, which proves compliance with the obligation within the deadline.

Deductions that reduce tax

Deductions are expenses you can subtract from the tax calculation base, reducing the amount to pay or increasing the refund.

Health expenses

There’s no limit for deducting medical and dental expenses for yourself and your dependents. Deductible items include:

• Medical and dental consultations
• Laboratory and imaging exams
• Medical treatments and physical therapy
• Orthopedic and dental prostheses
• Health insurance
• Prescription medications
• Hospital expenses

Important: Pharmacy medications are only deductible when prescribed and the taxpayer doesn’t have health insurance, or when not covered by the plan.

Education

The limit for education deduction in 2023 was R$ 3,561.50 per person (taxpayer and each dependent). Deductible items include:

• Early childhood education, elementary, high school, and higher education
• Technical and technological courses
• Graduate studies (specialization, master’s, doctorate)
• Language courses are not deductible

Dependents

For each dependent, you can deduct R$ 2,275.08 from the tax calculation base. Dependents must meet criteria established by the Federal Revenue Service, such as children up to 21 years old, spouse without income, or minors under legal guardianship.

Tax calculation

Income Tax uses a progressive table, where higher rates apply to higher income brackets.

2024 progressive table

For 2023 income, the IRPF table is:

• Up to R$ 2,112.00: exempt
• From R$ 2,112.01 to R$ 2,826.65: 7.5%
• From R$ 2,826.66 to R$ 3,751.05: 15%
• From R$ 3,751.06 to R$ 4,664.68: 22.5%
• Above R$ 4,664.68: 27.5%

Practical example: A person with monthly calculation base of R$ 5,000.00 will pay:

• R$ 2,112.00 × 0% = R$ 0.00
• R$ 714.65 × 7.5% = R$ 53.60
• R$ 924.40 × 15% = R$ 138.66
• R$ 913.63 × 22.5% = R$ 205.57
• R$ 335.32 × 27.5% = R$ 92.21

Monthly total: R$ 490.04

How to use our calculator

Our IRPF calculator allows you to simulate your tax calculation quickly and accurately. Simply enter:

• Monthly gross salary
• Number of dependents
• Deduction amounts (INSS - social security, alimony)
• Other allowed deductions

The calculator will show the tax withheld at source, net amount to receive, and allow you to compare different scenarios to optimize your tax planning.

Most common mistakes

1. Not declaring all income: Many taxpayers forget to include smaller income sources, such as occasional rent or freelance work. The Federal Revenue Service cross-references data from various sources and may identify these omissions.

2. Incorrectly reporting dependents: Including people who don’t qualify as dependents or not updating the status of dependents who lost that condition.

3. Asset value errors: Reporting asset values different from those declared in the previous year without adequate justification may raise questions.

4. Improper expense deductions: Attempting to deduct expenses that aren’t allowed or lack adequate documentation.

5. Dependent CPF: Not providing or incorrectly providing dependent CPF numbers when required.

6. Not keeping receipts: Discarding documents that prove deductible expenses or declared income.

7. Late filing: Missing the filing deadline results in fines and may compromise other benefits, such as financing.

To avoid these errors, stay organized throughout the year, keep documents updated, and always consult official sources to clarify doubts.

Frequently Asked Questions

Can I amend my declaration after filing?

Yes, you can file an amended declaration at any time after submitting the original declaration. Use the same Federal Revenue Service program and make necessary corrections. If the amendment results in tax owed, you must pay the difference with interest calculated from the original deadline.

What’s the difference between complete and simplified declarations?

In the simplified declaration, you receive a standard 20% discount on taxable income (limited to R$ 16,754.34 in 2023) instead of detailed deductions. In the complete declaration, you report all deductible expenses. The program automatically chooses the most advantageous option for you.

Can I include my spouse as a dependent?

Yes, provided the spouse doesn’t have taxable income exceeding R$ 28,559.70 for the year. If both have income above this amount, they must file separate declarations. In marriage, you can choose joint or separate filing, selecting the most advantageous option.

How do I know if I’ll receive a refund or owe tax?

Compare the tax calculated on your annual income with the amount withheld at source during the year. If the withheld amount is higher, you’ll receive a refund. If lower, you’ll owe tax. Our IRPF calculator can help with this simulation before filing the official declaration.

I’m a MEI (micro-entrepreneur), do I need to file Income Tax?

Being a MEI doesn’t exempt you from the obligation to file individual IR. You must add MEI income (taxable portion) with other income to verify if it exceeds the mandatory filing limits. MEI income has an exempt portion based on the activity performed.

What happens if I don’t file the declaration?

Besides the late fee (minimum R$ 165.74), you’ll be unable to regularize your CPF, can’t open bank accounts, can’t get loans from official banks, can’t participate in public competitions, and won’t receive refunds if entitled.

Can I deduct gym expenses and dental plans?

Gyms are not deductible as they’re considered wellness expenses, not medical treatment. Dental plans are fully deductible, as are dental treatments performed by qualified professionals. Always keep receipts and invoices for medical and dental expenses.