Salary Income Tax: 2024 Guide with Tables & Examples
Complete guide on payroll income tax withholding in Brazil. Updated 2024 tables, deductions, practical examples, and calculation tips.
Payroll income tax withholding is a mandatory deduction that affects the compensation of millions of Brazilian workers. Understanding how this calculation works is essential for organizing your finances and avoiding surprises in your annual tax return.
This guide covers everything you need to know about salary income tax, including the updated 2024 table, allowed deductions, and practical examples for different salary ranges.
How salary income tax works
Who pays income tax
Every worker earning above R$ 2,259.20 per month is subject to income tax withholding at source. This includes:
- CLT (labor law) employees (formal workers)
- Public servants
- INSS (social security) pensioners
- Retirement beneficiaries
- Workers with temporary contracts
The deduction is automatically made by the company or paying entity, based on the current progressive table.
Income tax calculation base
The calculation base is not the total gross salary. First, some mandatory contributions are deducted:
- INSS (social security) contribution (up to R$ 908.85 in 2024)
- Private pension contribution (if applicable)
- Court-ordered alimony
- Amount per dependent (R$ 189.59 each)
Example: Gross salary R$ 5,000 → INSS deduction R$ 543.31 → tax base R$ 4,456.69
Income tax only applies to this net amount.
2024 progressive income tax table
Tax brackets
The 2024 income tax table remains unchanged since 2015, with four progressive tax brackets:
| Salary Range | Rate | Deduction Amount |
|---|---|---|
| Up to R$ 2,259.20 | Exempt | - |
| R$ 2,259.21 to R$ 2,826.65 | 7.5% | R$ 169.44 |
| R$ 2,826.66 to R$ 3,751.05 | 15% | R$ 381.44 |
| R$ 3,751.06 to R$ 4,664.68 | 22.5% | R$ 662.77 |
| Above R$ 4,664.68 | 27.5% | R$ 896.00 |
Tax rates and deduction amounts
The deduction amount simplifies the progressive calculation. It already considers that previous brackets were taxed at lower rates.
To calculate the income tax due:
- Identify the salary bracket
- Multiply the calculation base by the rate
- Subtract the corresponding deduction amount
Example: Base R$ 4,000 → 22.5% = R$ 900 → minus R$ 662.77 = R$ 237.23 income tax
Use our Income Tax Calculator for automatic calculations.
Allowed deductions
Dependents
Each dependent reduces the income tax base by R$ 189.59. Dependents include:
- Children up to 21 years old (or 24 if university students)
- Spouse with no income or low income
- Parents over 65 whom you support
- People with disabilities whom you maintain
Alimony
Court-ordered alimony is 100% deductible from the calculation base. It must be proven by court decision and paid directly to the beneficiary.
Voluntary alimony (without court order) cannot be deducted at source, only in the annual return.
Private pension
PGBL contributions can be deducted up to 12% of annual gross income. This deduction reduces monthly income tax withholding.
For VGBL, there is no tax deduction at the time of contribution.
Step-by-step calculation
Income tax calculation follows five mandatory steps:
- Calculate the base: Gross salary - INSS - private pension - alimony
- Deduct dependents: Base - (number of dependents × R$ 189.59)
- Identify the bracket: Compare with the progressive table
- Apply the rate: Base × bracket percentage
- Subtract the deduction: Result - deduction amount
Complete example: Salary R$ 6,000 → INSS R$ 713.08 → 2 dependents (R$ 379.18) Final base: R$ 4,907.74 Income tax: R$ 4,907.74 × 27.5% - R$ 896 = R$ 453.63
Practical examples
Different salary brackets
Salary R$ 3,000 (15% bracket):
- Base after INSS: R$ 2,775.66
- Income tax due: R$ 2,775.66 × 15% - R$ 381.44 = R$ 35.91
Salary R$ 8,000 (27.5% bracket):
- Base after INSS: R$ 7,091.15
- Income tax due: R$ 7,091.15 × 27.5% - R$ 896 = R$ 1,053.82
Salary R$ 2,200 (exempt):
- Base after INSS: R$ 1,958.20
- Income tax due: R$ 0.00 (below exemption threshold)
Impact of dependents
A salary of R$ 5,000 with different numbers of dependents:
| Dependents | Tax Base | Tax Withheld | Difference |
|---|---|---|---|
| 0 | R$ 4,456.69 | R$ 329.59 | - |
| 1 | R$ 4,267.10 | R$ 277.45 | -R$ 52.14 |
| 2 | R$ 4,077.51 | R$ 225.31 | -R$ 104.28 |
Each dependent saves approximately R$ 52 monthly in income tax.
Refund and additional payment
When there’s a refund
You’re entitled to a refund when the income tax withheld during the year was higher than what’s due in the annual return. This happens due to:
- Deductible medical and education expenses
- Private pension contributions not informed at source
- Changes in number of dependents
- Salary reduction during the year
When there’s additional payment
You must pay additional tax when the withheld amount was insufficient. Common situations:
- Income from other non-taxed sources
- Capital gains on investments
- Rental income without withholding at source
- Additional freelance work
Use annual simulation to estimate whether you’ll have a refund or additional payment.
Tips to reduce income tax
Legal reduction strategies
Maximize allowed deductions:
- Declare all eligible dependents
- Keep receipts for medical and educational expenses
- Contribute to private pension (PGBL)
- Donate to children’s rights funds (up to 6% of tax due)
Tax planning
Organize your investments considering taxation:
- LCI/LCA are exempt from income tax for individuals
- Long-term funds have regressive taxation
- Stocks are exempt up to R$ 20,000 in monthly sales
- Treasury Direct allows long-term planning
Negotiate non-taxable benefits with your employer:
- Meal and food vouchers
- Company health plan
- Transportation vouchers
- Professional development courses
These benefits reduce the income tax calculation base legally and efficiently.
Frequently Asked Questions
Who is required to pay income tax on salary?
Every worker earning above R$ 2,259.20 monthly is subject to income tax withholding at source. This includes CLT employees, public servants, retirees, and pensioners who exceed this amount.
How is the income tax base calculated?
The base is the gross salary minus mandatory deductions: INSS contribution, private pension, court-ordered alimony, and dependent amounts (R$ 189.59 each). Income tax applies to this net amount according to the progressive table.
How many dependents can I include on payroll?
There’s no legal limit, but you must prove dependency according to the Federal Revenue Service. Children up to 21, spouse without income, supported elderly parents, and people with disabilities are the main accepted cases.
Why did my income tax change even with the same salary?
Income tax can vary due to changes in the calculation base: INSS ceiling adjustments, inclusion/exclusion of dependents, start/end of pension contributions, or changes in alimony amounts. Check these factors on your pay stub.
How much does each dependent reduce income tax?
Each dependent reduces the monthly calculation base by R$ 189.59. In practice, this represents savings of approximately R$ 14 to R$ 52 in withheld tax, depending on your tax bracket (7.5% to 27.5%).
Do meal vouchers and health plans reduce income tax?
Yes, these benefits don’t compose the income tax calculation base when provided by the employer within legal limits. Meal vouchers, food vouchers, company health plans, and transportation vouchers are examples of non-taxable benefits.
How do I know if I’ll have a refund or additional payment?
Compare the income tax withheld during the year (sum of pay stubs) with the tax due in the annual return. If withheld > due = refund. If withheld < due = additional payment. Use our Income Tax Calculator to simulate different scenarios.