How Brazilian payroll deductions work
If you work in Brazil under a CLT contract (standard formal employment), two mandatory deductions come out of your gross salary: the INSS social security contribution and the IRRF income tax withholding. And since January 2026, under Law 15,270/2025, anyone earning up to R$ 5,000 a month effectively pays no income tax.
This calculator mirrors the exact order a Brazilian payroll system follows, using the 2026 figures, and shows every step in a row-by-row breakdown. Everything runs in your browser; nothing is stored or sent.
How to use it
- Enter your gross monthly salary in Brazilian reais (R$).
- Add the number of dependents you claim for income tax (children under 21, a spouse, and similar cases).
- Optionally add other payroll deductions (health plan, transport voucher): they lower take-home pay but not the tax base.
- Read the net-salary card and the step-by-step table below it.
The 2026 rules at a glance
Employee INSS
Brackets set by Interministerial Ordinance MPS/MF 13/2026, effective 1 January 2026. The contribution is progressive, like US federal tax brackets: each rate applies only to the slice of salary inside its own band.
| Salary band | Rate |
|---|---|
| Up to R$ 1,621.00 | 7.5% |
| R$ 1,621.01 to R$ 2,902.84 | 9% |
| R$ 2,902.85 to R$ 4,354.27 | 12% |
| R$ 4,354.28 to R$ 8,475.55 (ceiling) | 14% |
Salaries above the R$ 8,475.55 ceiling stop contributing there, so the maximum contribution is R$ 988.09.
Monthly IRRF table
In force since May 2025 (Law 15,191/2025) and unchanged for 2026. The tax base is gross pay minus INSS and R$ 189.59 per dependent — or gross pay minus the flat “simplified deduction” of R$ 607.20, whichever produces less tax. Employers apply the better option automatically; with no dependents, the simplified one usually wins up to about R$ 5,754 gross.
| Tax base | Rate | Amount to subtract |
|---|---|---|
| Up to R$ 2,428.80 | Exempt | R$ 0.00 |
| R$ 2,428.81 to R$ 2,826.65 | 7.5% | R$ 182.16 |
| R$ 2,826.66 to R$ 3,751.05 | 15% | R$ 394.16 |
| R$ 3,751.06 to R$ 4,664.68 | 22.5% | R$ 675.49 |
| Above R$ 4,664.68 | 27.5% | R$ 908.73 |
The Law 15,270/2025 reduction
After the table is applied, a reduction kicks in based on the month’s taxable income (the gross amount subject to the table — not the tax base, a common mix-up):
| Monthly taxable income | Reduction |
|---|---|
| Up to R$ 5,000.00 | Equal to the computed tax (tax drops to zero) |
| R$ 5,000.01 to R$ 7,350.00 | 978.62 minus 0.133145 times taxable income |
| Above R$ 7,350.00 | No reduction |
Worked example
Gross salary of R$ 5,000.00, no dependents:
- INSS: 1,621.00 at 7.5% = 121.58; 1,281.84 at 9% = 115.37; 1,451.43 at 12% = 174.17; 645.73 at 14% = 90.40. Total: R$ 501.51.
- IRRF base: with legal deductions, 5,000.00 minus 501.51 = 4,498.49; with the simplified deduction, 5,000.00 minus 607.20 = 4,392.80 (lower, so it wins).
- Tax from the table: 4,392.80 at 22.5% minus 675.49 = 312.89.
- Reduction: taxable income of R$ 5,000.00 is within the exemption limit, so the reduction equals the tax (312.89). Final IRRF: R$ 0.00.
- Net salary: R$ 4,498.49.
At R$ 10,000.00 gross: INSS is capped at R$ 988.09, the legal-deductions base (9,011.91) is the better one, IRRF is 9,011.91 at 27.5% minus 908.73 = R$ 1,569.55 (no reduction above R$ 7,350), and take-home pay is R$ 7,442.36.
Frequently asked questions
Is income up to R$ 5,000 really tax-free?
Effectively, yes. The tax is still computed with the regular table, but the Law 15,270/2025 reduction cancels it whenever the month’s taxable income stays at or below R$ 5,000.00. Between R$ 5,000.01 and R$ 7,350.00 it is only partial.
I am a foreigner working in Brazil — do these rules apply to me?
Yes. If you hold a CLT contract, your payroll is calculated exactly like any Brazilian employee’s: same INSS brackets, same IRRF table, same reduction, regardless of nationality.
Does this cover the 13th salary or vacation pay?
No. Brazil’s mandatory 13th salary is taxed separately under exclusive rules, and vacation pay has its own withholding treatment. This tool estimates the regular monthly paycheck only.
How long are these figures valid?
They are the 2026 values, per Ordinance MPS/MF 13/2026 and Laws 15,191/2025 and 15,270/2025, following guidance from the Receita Federal (Brazil’s tax authority). The INSS ceiling, tax table and reduction usually change every year, so review them annually.