English 
Spanish 
2 min read
0 comments
The Lula government recently announced a new policy for the income tax exemption bracket, which now includes workers with incomes of up to R$5 per month.
The change fulfills a promise made during the 2022 presidential campaign and aims to bring more tax justice and ease the burden of taxes on the middle class and low-income groups. Understand how this affects your pocket and what the benefits of this new Income Tax exemption are.
Income Tax Exemption: more disposable income and stimulus to consumption
With the new Income Tax exemption bracket, the idea is that workers with lower salaries have a higher net income, that is, more money in hand at the end of the month. Laura Alvarenga, a finance specialist, explains that this relief on income tax brings direct benefits to the population.
The main benefits include increased purchasing power and the ability to direct these resources towards essential expenses such as food, health and education. In addition, the increase in consumption helps to boost the economy, boosting local commerce and benefiting small businesses.
- Did you know? The future of cars is being decided right now in Brazil
- Brazilian drivers are caught off guard by new radar! Unforgivable, it promises to put an end to a common practice among drivers! New technology is working in 24 states
- Essential rules for investing in cryptocurrencies safely in 2025
- Megaproject challenges the limits of construction: 40 BILLION tunnel that connects two continents through the ocean at MORE THAN 470 meters deep and already has a completion date
Another important point is the bureaucracy reduction: Millions of Brazilians who previously had to file their income tax return annually will now be exempt, making the process faster and less costly. The new bracket promotes a more balanced distribution of taxes, which is seen as an important step towards tax justice in the country.
Possible future changes and new rules for 2024
In addition to the R$5 bracket, President Lula expressed interest in further expanding the income tax exemption. Although no additional changes have been confirmed, the signal that the government is considering going further brings positive expectations for those who earn incomes close to this bracket.
For the year 2024, the Federal Revenue Service has implemented some important changes to the IR rules. Among the main new features are:
Exemption for those who receive up to R$2.640 per month;
Requires extra attention to documentation for medical and educational deductions;
Mandatory declaration of income in cryptocurrencies, with a focus on increasing transparency and security in operations.
These changes reinforce the government's commitment to simplifying the process and bringing real benefits to workers. With more features available and less bureaucracy, the expectation is that the new Income Tax exemption bracket will represent an improvement in financial conditions for many Brazilians, increasing their savings capacity, investment and quality of life.
