The impacts of the new Personal Income Tax (IRPF) 2026 table begin to be noticed this week, in the paychecks of employees who earn up to R$5,000 gross per month. They will be completely exempt from IR, and those with income of up to R$7,350 will have a gradual reduction in tax withheld at source.
The changes began to take effect for salaries paid from Januarywith effect starting with the February payment.
According to estimates from the Ministry of Finance, 16 million people should benefit from the measure.
[TEM FOTO] One of them is the bricklayer from the Federal District, Genival Gil, aged 49, who found out about the measure on the news. For three months, he has been registered (with a signed work card) with a salary of just over R$2,700.
Now, Genival is waiting for the paycheck to check the amount – which previously went to the Union’s coffers and which will now remain in the account. The remainder will be destined for the right purpose.
“It will help pay some extra household bills”, says the bricklayer who lives on rent in Paranoá, 20 kilometers from the center of Brasília.
With the new rule, they are now completely exempt from IRPF, as long as their total monthly income does not exceed R$5,000:
– workers with a formal contract;
– public servants;
– retirees and pensioners from INSS or their own schemes.
The rule also applies to the thirteenth salary.
Income above R$7,350 continues to follow the current progressive income tax discount table (up to 27.5%).
[TEM FOTO] The gardener at a shopping mall in Brasília, Arnaldo Manuel Nunes, 55 years old, also knows that from this month onwards, a considerable portion of his work that was withheld at source will now no longer be deducted from his salary. Earning the lowest salary for the category, R$2,574, Arnaldo considers the measure to be good for the household budget. “It’s barely enough for the guy to support himself. But I’m going to spend it on [as contas de] water and electricity, which are absurd.”
Ignorance
On the streets, the news report Brazil Agency also interviewed several formal workers who are unaware of the new income tax table and the main changes to exemption and reduction in tax collection.
[TEM FOTO] This is the case of the cashier at a national pharmacy chain, Renata Correa, who was surprised by the news that she will no longer have to pay income tax with her current salary of R$1,620. Her plans are to save the unexpected amount. “I’m going to make some extra lace and keep it in storage so I can get to the end of the year or use it on special dates. Even use it in an emergency.”
Upon arriving at the workplace, Renata promised to inform her colleagues about the good news so that they can stay alert. “Now, I’m going to watch the paycheck and run after it so I don’t have any problems and make sure everything is ok.” Renata lives in her own house in Santo Antônio do Descoberto (GO) with her three daughters.
The member of the Federal Accounting Council (CFC) Adriano Morocco reassures workers with a formal contract, as the exemption for those who earn up to R$5,000 and the gradual discounts, for those with an income of R$5,001 to R$7,350, will be automatic.
“Those who have a job don’t need to worry, as the calculations are automatic in the programs that generate payroll. What people should note is that there is a calculation combined with the additional reducer and the simplified discount.”
More effective communication
[TEM FOTO] The news filled the eyes of cook Elisabete Silva Ribeiro dos Santos, 48 years old. For a year and a half, she has worked in a restaurant located in a popular area, in the center of Brasília, and earns around R$1,700 per month. “If I have any money left, I want to save it to buy a car because I come by bus every day from Recanto das Emas.”
However, Elisabete felt the lack of communication from the employer to employees. Neither she nor the barbecue chef knew about the income tax exemption. Therefore, it still took a while to trust the veracity of the news.
“I think it’s excellent, but let’s see if it’s really worth it!”
To eliminate doubts, accountant Adriano Morocco suggests improving communication with workers.
“In relation to employees, the suggestion is to send a text explaining the changes and that it is not a salary increase, but a tax reduction.”
On Friday (30), President Luiz Inácio Lula da Silva published on his social networks the news that the exemption from IR begins to be noticed in the salary received this month.
“It’s worth it: those who earn up to R$5,000 now have ZERO Income Tax. And those who earn between R$5,000 and R$7,350 are paying less tax. It’s more money to take care of their family, organize their lives and live better. This is tax justice, and it is coming to millions of Brazilians,” said President Lula.
Where does the money come from?
The tax waiver bill — estimated at R$25.4 billion — will be paid by those at the top of the economic pyramid. To compensate for the loss of revenue, the Minimum Personal Income Tax (IRPFM) was created.
Salaries received are included in the calculation; profits and dividends; and income from taxable financial investments.
The government’s estimate is that around 141 thousand taxpayers will be affected. Since January 1st, the rule is valid for those who have:
– monthly income above R$50 thousand (R$600 thousand/year), progressive rate of up to 10%;
– income above R$1.2 million/year, the so-called super-rich: minimum effective rate of 10%.
With the new tax aimed at high income, accountant Adriano Morocco believes that the impact on federal tax collection should be minimal.
“There was already an exemption benefit for those who received up to two minimum wages (R$ 3,036). So, the waiver only has a margin of R$ 3,036.01 to R$ 5 thousand. On the other hand, the federal government sanctioned the collection of income tax on portions that were exempt, such as the distribution of profits.”
For clothing store manager Pedro Henrique Mendonça Marques, 23 years old, the federal measure provides tax justice in Brazil.
“It’s legal because, in these cases, it will tax those who receive more. They pay more, and those who receive less, pay less. That’s the logic.”
He receives around R$2,300 per month and intends to contribute more towards the expenses of the house he shares with his mother, in the city of São Sebastião. In this financial mathematics, he even thinks about the future. “I think I’m going to move out of my mother’s house, for example.”
When declaring income tax
According to the Ministry of Finance, the correction of the Personal Income Tax (IRPF) table will only be reflected in the 2027 declaration, which considers income from 2026.
Advisor Adriano Morocco explains that for the annual Personal Income Tax Declaration, to be delivered in May this year, nothing changes. “These workers will still have to submit it normally. The benefit only started in January 2026, that is, any impact of the IR reduction should only be noticed in May 2027.”
The Ministry of Finance explains that nothing changes in the main IR deductions at the time of declaration:
– dependents: R$ 189.59 per month;
– simplified monthly discount: up to R$607.20;
– education expenses: up to R$3,561.50 per person per year;
– annual declaration: simplified discount of up to R$17,640.
Morocco also clarifies that the exemption from submitting the declaration for those earning less than R$5,000 in 2026 is not based only on taxable income, but on exempt and non-taxable income, those taxable exclusively at source, in addition to assets.
Anyone who has more than one source of income will need to supplement the tax in their annual declaration, even if each isolated income is less than R$5,000.
For taxpayers who fear making mistakes in filling out their income tax declaration in 2026 and 2027, the tip is to observe what is detailed in the report made available by companies, mandatory in the first quarter of each year.
“The data generated by companies is sent to the Federal Revenue, through monthly and quarterly electronic declarations. Therefore, the occurrence of errors is low.”
In addition to the need for the taxpayer to declare in the same way as described in the Income Report, it is “important to check the data in the declaration pre-filled by the Federal Revenue Service before confirming the sending”, recalls the accountant.
Check out the new IRPF table published by the Federal Revenue Service with the changes following the exemption for those earning up to R$5,000 and which came into force on January 1st of this year.
