How this estimate is calculated
Your employer deducts INSS, the social security contribution, from your salary. Each rate applies only to the part of pay inside its band, and contributions stop at the ceiling of R$8,475.55 a month.
Income tax (IRRF) is then withheld on your salary minus INSS and R$189.59 per dependent, or minus the simplified discount of R$607.20 if that gives less tax.
From 2026, a reduction removes income tax entirely for pay up to R$5,000 a month and lowers it gradually up to R$7,350.
INSS rates for 2026
| Salary per month | Rate |
|---|---|
| Up to R$1,621.00 | 7.5% |
| R$1,621.00 to R$2,902.84 | 9% |
| R$2,902.84 to R$4,354.27 | 12% |
| R$4,354.27 to R$8,475.55 | 14% |
Income tax rates for 2026
| Taxable income per month | Rate |
|---|---|
| Up to R$2,428.80 | 0% |
| R$2,428.80 to R$2,826.65 | 7.5% |
| R$2,826.65 to R$3,751.05 | 15% |
| R$3,751.05 to R$4,664.68 | 22.5% |
| Above R$4,664.68 | 27.5% |
The income tax table applies before the 2026 reduction. With the reduction, pay up to R$5,000 a month pays no income tax.
Contributions stop at the INSS ceiling of R$8,475.55 a month.
13th salary and vacation
Every CLT employee receives a 13th salary, usually paid in two parts by December. INSS and income tax are charged on it separately from your normal pay.
Paid vacation comes with a bonus of one third of your salary. The estimate adds it, after tax, to your yearly net pay.
Contractors (PJ) and self-employed
Many professionals in Brazil work through their own company (PJ). In Simples Nacional, a services company in Anexo III pays one monthly tax (DAS) on its revenue, starting at 6% for revenue up to R$180,000 a year.
A self-employed individual (autônomo) pays INSS of 20% of income up to the ceiling and income tax by the same monthly table as employees.
What this estimate leaves out
- Overtime, commissions, meal and transport vouchers and other benefits.
- Private pension (PGBL), alimony and other deductions on your tax return.
- Health plans and union contributions deducted from pay.
- For PJ: municipal service tax outside the DAS, the Fator R and Anexo V, accounting costs and tax on large dividends.
- Residents abroad, who pay a flat withholding tax instead of the table.
Brazil has no special tax regime for people moving there from abroad: once you are tax resident, the same tables apply.