About taxes in Brazil

Brazil taxes employment income under the CLT regime using a progressive monthly IRPF (Imposto de Renda) table with rates from 0% up to 27.5%. From 2026, the government's simplified monthly deduction of R$607.20 (equivalent to raising the exempt band to two minimum wages) applies automatically and generally replaces the per-dependent deduction for most employees. Employees also pay INSS (social security) progressively per slice — 7.5%, 9%, 12% and 14% — up to a monthly ceiling (around R$8,157 in 2026). FGTS (8% of gross) is paid by the employer into a severance fund and does not reduce net pay. The 13th salary and one-third holiday bonus are separate items paid annually and are not included in this monthly estimate. IRPF is withheld at source (IRRF) and reconciled through the annual DIRPF declaration filed between March and May. This calculator uses standard CLT parameters and the simplified deduction; dependents, private pension (PGBL), health-insurance deductions and alimony can further reduce the taxable base in your real payslip.