Brazil annual income tax calculator: 2027 return, 2026 tax year

The annual return in Brazil

Brazil's personal income tax, the IRPF, is withheld from salaries every month, then settled once a year in the declaração de ajuste anual (annual tax return). The return filed in 2027 covers the 2026 calendar year.

1. Taxable income

Add up salaries, vacation pay, rent and other taxable income received from January to December. Leave out the 13º salário (13th salary, the mandatory year-end bonus): it is taxed exclusively at source and is not part of the annual adjustment. Exempt income and other exclusively-taxed income, such as most investment returns, also stay out.

2. Simplified or itemised

The simplified discount is 20% of taxable income, capped at R$17,640.00. The itemised method (completo) uses the legal deductions:

• INSS (social security) paid in the year;
• R$2,275.08 per dependant;
• medical expenses, with no cap;
• education up to R$3,561.50 per person (you and each dependant); the calculator applies that cap to the total you enter, times the number of people;
• court-ordered alimony;
• PGBL private pension contributions up to 12% of taxable income. The law allows this only if you also contribute to the official social security system; the calculator does not check that.

Both methods are calculated and the one with lower tax due is highlighted.

3. Annual progressive table

Taxable base = income − deductions; tax = base × rate − deduction amount:

4. The Lei 15.270/2025 annual reduction

Lei 15.270/2025 added art. 11-A to Lei 9.250/1995. The reduction is based on gross taxable income, not on the taxable base. Up to R$60,000.00 a year it reaches R$2,694.15, which in practice brings the tax to zero. Between R$60,000.01 and R$88,200.00 it tapers linearly: 8,429.73 − 0.095575 × income. Above that there is none, and it never exceeds the tax itself.

5. Refund or tax due

balance = tax due − tax withheld. A positive figure is tax to pay; a negative one is a refund.

Not covered

• The high-income minimum tax (art. 16-A, above R$600,000.00 a year): only a warning is shown.
• Capital gains, separate carnê-leão payments, business expense books and dependants' own income.

Results are estimates; the Receita Federal (federal tax authority) filing program gives the official figure. For monthly withholding, see the net salary calculator; to compare employment with your own company, the CLT vs PJ calculator.

The example taxpayer had R$120,000.00 of taxable income, paid R$11,857.20 of INSS, had R$17,000.00 withheld, has 1 dependant, R$6,000.00 of medical costs and R$8,000.00 of education costs. Under the simplified method 20% would be R$24,000.00, but the cap is R$17,640.00: the base is R$102,360.00 and the tax R$17,244.34, leaving R$244.34 to pay. Itemising, education is capped at 2 people × R$3,561.50 = R$7,123.00, so deductions total R$27,255.28. The base drops to R$92,744.72 and the tax due to R$14,600.14. Income is above R$88,200.00, so there is no Lei 15.270 reduction. Itemising wins, with a refund of R$2,399.86 and an effective rate of about 12.17%.