How net salary is calculated in Brazil
- INSS is deducted using a progressive table (7.5% to 14%).
- The income tax base is gross salary minus INSS, R$ 189.59 per dependent and alimony, or the simplified deduction of R$ 607.20 if higher.
- The monthly income tax table is applied.
- The Law 15,270/2025 reduction brings the tax to zero for taxable income up to R$ 5,000 and reduces it up to R$ 7,350.
2026 tables
| INSS band | Rate |
|---|---|
| Up to R$ 1,621.00 | 7.5% |
| R$ 1,621.01 – 2,902.84 | 9% |
| R$ 2,902.85 – 4,354.27 | 12% |
| R$ 4,354.28 – 8,475.55 | 14% |
Example: a gross salary of R$ 5,000 pays R$ 501.51 of INSS and no income tax, for a net salary of R$ 4,498.49.
Frequently asked questions
Who is exempt from income tax in Brazil in 2026?
Workers with taxable monthly income up to R$ 5,000 have their withholding tax reduced to zero by Law 15,270/2025. INSS is still deducted.
What is the simplified deduction?
A flat R$ 607.20 deduction used instead of itemized deductions (INSS, dependents, alimony) when it is more favorable. The calculator picks the best option.