Those who earn up to R$ 5,000 no longer pay Income Tax since January 2026, and retirees over 65 years old are exempt up to R$ 6,903 in a change that benefits 16 million Brazilians.

Written by Douglas Avila

Published on 15/04/2026 at 23:37

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Those who earn up to R$ 5,000 per month will no longer pay Income Tax in 2026, retirees over 65 are exempt up to R$ 6,903, and the change benefits 16 million Brazilians

Since January 2026, workers earning up to R$ 5,000 per month are completely exempt from Income Tax. The change benefits more than 10 million people who previously paid the tax.

For retirees and pensioners over 65, the exemption is even greater. Those who receive up to R$ 6,903.98 are completely free from Income Tax thanks to the double exemption provided by law.

In total, 16 million Brazilians are benefited. Of these, more than 10 million are completely exempt, and another 5 million receive partial reduction.

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Between R$ 5,000 and R$ 7,350 the discount is progressive: the closer to R$ 5,000, the less tax

For those earning between R$ 5,000.01 and R$ 7,350, there is a partial discount. The tax decreases gradually the closer the salary is to R$ 5,000.

Computer screen with income tax declaration

The reduction formula is: R$ 978.62 minus 0.133145 times the monthly income. Above R$ 7,350, there is no reduction.

José Carlos da Fonseca, supervisor of the Income Tax at the Federal Revenue, explained: “The taxpayer who earns up to R$ 5,000 has a total reducer, and those who earn up to R$ 7,350 have a reducer that reduces the tax paid.”

Retirees over 65: the double exemption that frees up to R$ 6,903 per month

Elderly Brazilian couple smiling in a park

The legislation grants retirees and pensioners over 65 an additional exemption of R$ 1,903.98. Added to the new bracket of R$ 5,000, the total exempt amount reaches R$ 6,903.98.

This rule applies to beneficiaries of the INSS and complementary pensions. The discount occurs directly at the paying source.

Attention: exemption does not exempt declaration if you have assets over R$ 800,000

Facade of the Federal Revenue building in Brazil

Fonseca warned of a common confusion: “There is confusion regarding this receipt of up to R$ 5,000 in 2026. They are exempt from paying Income Tax, but not necessarily exempt from declaring.”

Those with assets over R$ 800,000, rural income exceeding R$ 177,920, or capital gains need to declare even if exempt from payment.

According to Agência Brasil, the 2026 declaration (base year 2025) uses the previous table, with exemption up to R$ 2,259.20. The new rules only apply to the 2027 declaration.

According to G1, the exemption represents the largest expansion of the bracket in the history of Brazilian Income Tax. Brazil is approaching the standards of countries like Portugal and Chile in tax progressivity. For 16 million Brazilians, the practical result is more money in their pockets every month.

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Those who earn up to R$ 5,000 no longer pay Income Tax since January 2026, and retirees over 65 years old are exempt up to R$ 6,903 in a change that benefits 16 million Brazilians.

Those who earn up to R$ 5,000 per month will no longer pay Income Tax in 2026, retirees over 65 are exempt up to R$ 6,903, and the change benefits 16 million Brazilians

Between R$ 5,000 and R$ 7,350 the discount is progressive: the closer to R$ 5,000, the less tax

Retirees over 65: the double exemption that frees up to R$ 6,903 per month

Attention: exemption does not exempt declaration if you have assets over R$ 800,000

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Those who earn up to R$ 5,000 no longer pay Income Tax since January 2026, and retirees over 65 years old are exempt up to R$ 6,903 in a change that benefits 16 million Brazilians.

Those who earn up to R$ 5,000 per month will no longer pay Income Tax in 2026, retirees over 65 are exempt up to R$ 6,903, and the change benefits 16 million Brazilians

Between R$ 5,000 and R$ 7,350 the discount is progressive: the closer to R$ 5,000, the less tax

Retirees over 65: the double exemption that frees up to R$ 6,903 per month

Attention: exemption does not exempt declaration if you have assets over R$ 800,000

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While the U.S. still faces limitations in deep space, China is developing unprecedented technology with strategic satellites that maintain communication with the far side of the Moon and aims for dominance by 2030.

In Botswana, a salt flat of up to 16,000 km² that was once an African megalake spends months as an absolute white desert, but during the rainy season it transforms into a shallow sea that reappears from nowhere and can be seen from space in the middle of southern Africa.

The Blood Falls of Antarctica hide a living ecosystem trapped under the ice for over 2 million years, where microbes survive without light, without oxygen, and without ever having seen the Sun.

Bavarian archaeologists unearthed a medieval skeleton that had an articulated iron hand in place of its left arm, and the discovery reveals that doctors were already creating sophisticated prosthetics over 500 years ago.

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