Income Tax Withholding 2025: Calculation and Table
Complete guide to income tax withholding in 2025: progressive table, calculation examples, exemptions, and how to reduce monthly IR legally.
Income Tax Withheld at Source (IRRF) is automatically deducted from your salary every month. In 2025, the rules remain the same as 2024, but it’s important to understand how the calculation works to verify if the deduction is correct.
This tax applies to salaries, retirement benefits, pensions, and other income. The amount deducted monthly is an advance payment of annual income tax, which will be adjusted in the 2026 tax return.
Income tax withholding 2025
Who pays monthly income tax
Income tax withholding is mandatory for those who receive:
- Salaries above R$ 2,259.21 monthly
- INSS (social security) retirement benefits and pensions
- Corporate income
- Rent and other taxable income
CLT (labor law) workers, public servants, and retirees have the deduction made automatically by the company or paying entity.
Exemption bracket
The following are exempt from monthly deduction:
- Income up to R$ 2,259.20 per month
- Individuals with serious illnesses (even with higher income)
- People over 65 with income up to R$ 3,807.96 monthly
Example: Salary of R$ 2,200 → exempt from monthly income tax. Salary of R$ 2,300 → pays income tax on the amount exceeding R$ 2,259.20.
2025 income tax table
Tax rates by bracket
The 2025 progressive income tax table maintains the same brackets as 2024:
| Salary Bracket (R$) | Rate | Amount to Deduct (R$) |
|---|---|---|
| Up to 2,259.20 | Exempt | - |
| From 2,259.21 to 2,826.65 | 7.5% | 169.44 |
| From 2,826.66 to 3,751.05 | 15% | 381.44 |
| From 3,751.06 to 4,664.68 | 22.5% | 662.77 |
| Above 4,664.68 | 27.5% | 896.00 |
Deduction amount
The deduction amount simplifies the progressive calculation. Instead of calculating bracket by bracket, you multiply the salary by your bracket’s rate and subtract the corresponding amount.
This table is valid for the entire year 2025, with no scheduled adjustments.
How to calculate the deduction
Progressive calculation
Income tax follows the progressive system: the higher the salary, the higher the rate on the excess of each bracket.
To calculate manually:
- Identify your salary bracket
- Multiply salary by the rate
- Subtract the deduction amount
- Deduct R$ 189.59 per dependent
Example: Salary R$ 4,000 → R$ 4,000 × 22.5% = R$ 900 → R$ 900 - R$ 662.77 = R$ 237.23 in income tax.
Dependents and deductions
Each dependent reduces income tax by R$ 189.59 per month. Dependents include:
- Children up to 21 years old (or 24 if students)
- Spouse without own income
- Parents without own income over 65 years old
- Person with disability under your care
Use our income tax calculator to simulate different scenarios with dependents.
Calculation examples
Different salary brackets
Salary of R$ 3,500 (no dependents):
- Bracket: 15% (R$ 2,826.66 to R$ 3,751.05)
- Calculation: R$ 3,500 × 15% = R$ 525
- Monthly income tax: R$ 525 - R$ 381.44 = R$ 143.56
Salary of R$ 5,000 (no dependents):
- Bracket: 27.5% (above R$ 4,664.68)
- Calculation: R$ 5,000 × 27.5% = R$ 1,375
- Monthly income tax: R$ 1,375 - R$ 896 = R$ 479.00
With and without dependents
Salary of R$ 4,500 - comparison:
| Situation | Base Calculation | Dependent Discount | Final Income Tax |
|---|---|---|---|
| No dependents | R$ 350.02 | - | R$ 350.02 |
| 1 dependent | R$ 350.02 | R$ 189.59 | R$ 160.43 |
| 2 dependents | R$ 350.02 | R$ 379.18 | R$ 0.00 |
Having dependents can eliminate or significantly reduce monthly income tax.
Income tax on 13th salary
The 13th salary has special taxation:
- Calculated separately from monthly salary
- Uses the same progressive table
- Allows dependent deductions
- Paid in two installments (1st exempt, 2nd with deduction)
Example: 13th salary of R$ 4,000 → same calculation as regular salary → Income tax of R$ 237.23 on the second installment.
The 13th salary deduction is also an advance payment that will be adjusted in the annual return.
Refund and annual adjustment
When to receive a refund
You may be entitled to a refund if:
- You paid monthly income tax but had high deductible expenses (health, education)
- You contributed to private pension (PGBL/VGBL)
- You had lower income at year-end
- You have dependents not declared in monthly deduction
Mandatory 2026 tax return
It’s mandatory to file 2026 income tax return (2025 calendar year) if you:
- Received more than R$ 30,639.90 during the year
- Had income tax withheld at source in any amount
- Obtained exempt income above R$ 200,000
- Made stock market transactions
The return will be filed between March and May 2026, adjusting what was paid monthly.
Frequently Asked Questions
Can I legally reduce monthly income tax?
Yes. Declare valid dependents to company HR, contribute to private pension, and keep deductible expenses organized for annual adjustment.
What happens if the calculated income tax is wrong?
If the company miscalculates, you can contest with HR. In the annual return, the tax authority will make the correct adjustment - refunding if you overpaid or charging if you underpaid.
Does monthly income tax count as final payment?
No. Monthly income tax is an advance payment. The final amount is only determined in the annual return, when all income and deductions for the year are considered.
Does someone with multiple jobs pay double income tax?
Each company deducts income tax separately. In the annual return, you add all income and adjust the total amount - possibly getting a refund or paying the difference.
How does income tax work for variable salary earners?
The deduction applies to the monthly total (fixed salary + variable). In months with high commissions, income tax will be higher. In the annual adjustment, the actual yearly average will be considered.
Do retirees pay the same income tax as workers?
Yes, the table is the same. However, retirees over 65 have an additional exemption of R$ 1,548.76 monthly on retirement income.
Can I request higher monthly income tax deduction?
Yes. You can request additional deduction from HR to avoid paying difference in the return. This is useful for those with many extra income sources or few deductible expenses.