Income Tax on Salary: 2025 Table and How to Calculate
Learn how income tax is calculated on salary using the 2025 progressive table. Updated exemption threshold of R$2,824. Calculator and examples.
Income tax on salary is automatically deducted from payroll following the 2025 progressive table. For CLT (Brazilian labor law) workers, the calculation considers gross salary minus INSS (social security) contributions, applying rates according to income brackets.
The main change in 2025 is the adjustment of the exemption threshold to R$2,824.00, benefiting millions of Brazilian workers.
Income Tax on Salary
Who Must Pay
IR deduction on payroll is mandatory for all CLT workers who earn above the exemption limit. The employer automatically makes the deduction and forwards it to the Federal Revenue Service.
Subject to deduction:
- CLT workers with monthly gross salary above R$2,824.00
- Federal, state, and municipal civil servants
- INSS pensioners with benefits exceeding the limit
- Retirees who receive above the exemption bracket
Exemption Threshold
The exemption threshold in 2025 is R$2,824.00 monthly. This means those earning up to this amount don’t pay withholding income tax.
Example: Salary of R$2,800.00 → exempt from IR. Salary of R$3,000.00 → pays IR only on the excess amount.
Important: The calculation considers the tax base (gross salary minus INSS), not the total gross salary.
2025 IR Table
Updated Rates
The 2025 progressive table maintains the same rates, with adjustments only to bracket amounts:
| Tax Base (R$) | Rate | Deduction Amount (R$) |
|---|---|---|
| Up to 2,824.00 | Exempt | - |
| 2,824.01 to 3,751.05 | 7.5% | 212.08 |
| 3,751.06 to 4,664.68 | 15% | 493.58 |
| 4,664.69 to 5,817.43 | 22.5% | 843.32 |
| Above 5,817.43 | 27.5% | 1,134.25 |
Deduction Amount
The deduction amount simplifies tax calculation, avoiding complex bracket-by-bracket calculations. Apply the rate to the entire tax base and subtract the corresponding amount.
Simplified formula: IR = (Tax Base × Rate) - Deduction Amount
How to Calculate IR
Calculation Method
The calculation follows three main steps:
- Calculate the base: Gross salary - INSS - Alimony - Dependents
- Identify the bracket: Locate the rate in the 2025 table
- Apply the formula: (Base × Rate) - Deduction amount
Use our Income Tax calculator to get instant results.
Detailed Example
Scenario: CLT worker, salary R$4,500.00, no dependents.
Step 1 - INSS (11%):
- INSS: R$4,500.00 × 11% = R$495.00
- IR base: R$4,500.00 - R$495.00 = R$4,005.00
Step 2 - Identify bracket:
- Base R$4,005.00 → 15% bracket (R$3,751.06 to R$4,664.68)
Step 3 - Calculate IR:
- IR = (R$4,005.00 × 15%) - R$493.58
- IR = R$600.75 - R$493.58 = R$107.17
Result: Monthly deduction of R$107.17 from payroll.
Permitted Deductions
Dependents
Each dependent reduces the monthly tax base by R$189.59. The following are considered dependents:
- Children up to 21 years or up to 24 if university students
- Spouse or partner without own income
- Parents, grandparents, or great-grandparents over 65
- Children or stepchildren with disabilities (no age limit)
Financial impact: Each dependent saves between R$14.22 and R$52.14 monthly in IR, depending on the bracket.
Alimony
Alimony amounts determined by court order are 100% deductible from the tax base. The deduction is made before applying the table.
Required documentation:
- Court decision or approved agreement
- Monthly payment receipts
- Beneficiary’s CPF
Practical Simulation
Different Scenarios
Compare IR impact in different situations:
Scenario A - Single without dependents:
- Salary: R$5,000.00
- INSS: R$550.00
- IR base: R$4,450.00
- Monthly IR: R$162.67
Scenario B - Married with 1 child:
- Salary: R$5,000.00
- INSS: R$550.00
- Deductions: R$379.18 (2 dependents)
- IR base: R$4,070.82
- Monthly IR: R$127.89
Savings with dependents: R$34.78 monthly or R$417.36 annually.
Tax Optimization
Legal strategies to reduce IR:
- Maximize deductions with eligible dependents
- Declare alimony correctly
- Consider private pension (up to 12% of income)
- Keep receipts for deductible expenses
Use our Income Tax calculator to simulate different scenarios and plan your 2025 taxation.
Frequently Asked Questions
How do I know if I pay Income Tax?
Check if your gross salary minus INSS exceeds R$2,824.00. If yes, there’s IR deduction on payroll. Check your pay stub on the “IRRF” or “Imposto de Renda Retido na Fonte” line.
Can I include my parents as dependents?
Yes, as long as they’re over 65 years old or any age if unable to work due to disability. They cannot have their own income exceeding R$22,847.76 annually.
What happens if I have two jobs?
Each employer makes the deduction separately. In the annual tax return, you must add all income and may owe taxes or receive a refund, depending on the total amount taxed.
How does alimony work in IR?
Alimony paid is 100% deductible from the tax base. Alimony received is taxable at source if it exceeds R$2,824.00 monthly.
Do I need to file a return if I only have CLT salary?
Mandatory if: you received more than R$30,639.90 in the year, had IR withheld, own assets above R$800,000, or had capital gains. Most CLT workers with IR withheld must file.
When do I receive the IR refund?
Refunds for fiscal year 2025 (base year 2024) begin in May 2025. The timeline varies according to filing date and priority group (elderly, disabled, teachers).
How do I check my IR withheld for the year?
Access Meu Imposto de Renda on the Federal Revenue Service website with your CPF and password. There you’ll find all amounts withheld by employers during the base year.