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Attention to the Super-Rich: Congress Approved a Minimum Tax on Annual Income Starting at R$ 600 Thousand, Effective in 2026. The Rate Rises to 10% for Income Above R$ 1.2 Million and Includes Dividends, but Excludes Inheritances, Donations, and Capital Gains from the Calculation.
The super-rich are coming into the spotlight of a new minimum tax approved by Congress, set to take effect in 2026, targeting those earning over R$ 600 thousand per year. The rule establishes a progressive rate that ranges from 0% to 10%, reaching the cap for annual income above R$ 1.2 million, with the inclusion of dividends in the calculation.
The change was justified as necessary to offset the decline in revenue from the exemption on income tax for those earning up to R$ 5 thousand per month and the partial taxation of those earning up to R$ 7.2 thousand. At the same time, the law defines incomes that are excluded from the minimum tax base, such as inheritances, donations, and capital gains, along with a list of exempt income.
What Was Approved and When Collection Begins
The central point is the creation of a minimum tax that can reach 10% on the annual income of the super-rich, with collection starting in 2026.
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The basis establishes that the rule applies to those earning over R$ 600 thousand per year.
The model operates on a progressive basis: it is not a fixed rate for everyone above the threshold. The collection starts at 0% and increases as annual income rises, until reaching the cap.
The text makes it clear that the minimum tax targets annual income, and not individual transactions, and that the structure is designed to be applied in a tiered manner.
Why the Government Says the Tax Is “Necessary”
The justification presented is fiscal. The measure is described as necessary to compensate for the reduction in revenue linked to two changes:
- exemption of income tax for individuals earning up to R$ 5 thousand per month
- partial taxation of those earning up to R$ 7.2 thousand
In other words, the rule for super-rich acts as a counterbalance to revenue in a scenario where part of the taxpayers pays less tax or stops paying within lower income brackets.
How the Progressive Rate Works from 0% to 10%
The taxation of the super-rich follows a linear progression as annual income increases. The basis includes a table with brackets and percentages:
- 0% for annual income of R$ 600 thousand
- 2.5% for annual income of R$ 750 thousand
- 5% for annual income of R$ 900 thousand
- 7.5% for annual income of R$ 1.05 million
- 10% for annual income of R$ 1.2 million
The given example is straightforward: someone earning R$ 900 thousand annually will pay 5%, which amounts to R$ 45 thousand.
This example is important because it translates the rule into a final number, allowing the reader to understand the mechanism without having to calculate from scratch.
Which Incomes Are Included and the Role of Dividends
The basis states that the minimum tax for super-rich includes dividends in the composition of the incomes that are accounted for.
This is a sensitive point because dividends constitute a significant portion of the income of high-income individuals and are often the element that effectively differentiates the income of large investors and business owners from typical salary earnings.
By stating that the rule includes dividends, the text indicates that the model aims to capture a broader picture of annual earnings, not limited to salaries or pro-labore.
What Is Excluded from the Minimum Tax Calculation
The base text explicitly lists incomes that do not count towards this total. Among the items excluded from the calculation are:
- capital gains
- inheritances
- donations
- income received in a lump sum
- exempt investments
- savings
- retirement due to serious illness
- indemnities
- other exempt securities income
The base also reinforces that money from inheritances or from the sale of properties does not enter the base, and cites a specific rule:
Profits and dividends reported by companies in 2025 and distributed until 2028 are also excluded from taxation.
This temporal cut creates an important exception within the dividend theme and directly affects how part of the market may interpret the impact of the measure in the short term.
How Many People Will Be Affected and How It Compares to the Rest of the Country
According to the Ministry of Finance, the 10% rate will affect 0.13% of taxpayers, equivalent to about 140 thousand Brazilians. The text also provides a contrast with the current tax burden:
- this group currently pays, on average, 2.54% in Income Tax
- average workers pay, on average, 9% to 11% in Income Tax on their earnings
This segment is crucial to the narrative because it explains the “balance” argument: the proposal aims to increase the effective taxation of a group that, according to the government itself, pays a significantly lower average rate than regular workers.
Safeguards to Prevent Excessive Taxation and Possibility of Restitution
The law also establishes limits to prevent the total taxes paid by the company and the taxpayer from exceeding specified percentages for financial and non-financial companies.
If this total exceeds the defined percentages, the cited rule is that there will be restitution in the annual declaration.
This mechanism acts as an overlapping safeguard and is relevant for the reader because it indicates that the system is not just about “charging 10% and that’s it.”
It includes a control to prevent the total burden from exceeding parameters defined in the law.
The Portrait of Inequality: High Income Earns 1,451% More Than the Average
The base text adds data from Ipea to contextualize inequality:
High-income individuals in Brazil earn 1,451% more than the average Brazilian, who receives about R$ 3,222.00 per month.
This data provides a backdrop for the measure on super-rich, connecting the tax debate to a reality of wage differences and income concentration.
What Taxpayers Should Keep in Mind for 2026
Based on what has been presented, the practical summary is:
- the minimum tax for super-rich starts in 2026
- the threshold is annual income above R$ 600 thousand
- the rate increases progressively to 10% for annual income above R$ 1.2 million
- dividends are included, but there is an exception for profits and dividends reported in 2025 and distributed until 2028
- inheritances, donations, and capital gains are excluded from the calculation, as well as savings and other exempt incomes mentioned
In your opinion, should the super-rich really pay a higher minimum tax to compensate for the exemption for those earning up to R$ 5 thousand, or is this likely to create distortions and loopholes in the system?
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