How the calculation works
1. INSS: a progressive contribution by bands
Each INSS rate applies only to the slice of salary inside its band, like income tax brackets. In 2026, rates go from 7.5% to 14%, and the contribution stops at the R$ 8,475.55 ceiling: higher earners pay at most R$ 988.09 a month.
| Monthly salary | Rate |
|---|---|
| up to R$ 1,621.00 | 7.5% |
| R$ 1,621.01 to R$ 2,902.84 | 9% |
| R$ 2,902.85 to R$ 4,354.27 | 12% |
| R$ 4,354.28 to R$ 8,475.55 | 14% |
Each rate applies only to the part of the salary inside its band. The maximum contribution is R$ 988.09, reached at the R$ 8,475.55 ceiling.
2. Income tax: the progressive table
The tax base is gross pay minus legal deductions (INSS, R$ 189.59 per dependent and child support) or minus the R$ 607.20 simplified discount, whichever is better for you. The bracket rate is applied to the base, minus the bracket's fixed deduction.
| Monthly taxable base | Rate | Amount to deduct |
|---|---|---|
| up to R$ 2,428.80 | exempt | – |
| R$ 2,428.81 to R$ 2,826.65 | 7.5% | R$ 182.16 |
| R$ 2,826.66 to R$ 3,751.05 | 15% | R$ 394.16 |
| R$ 3,751.06 to R$ 4,664.68 | 22.5% | R$ 675.49 |
| above R$ 4,664.68 | 27.5% | R$ 908.73 |
Tax = base × rate − amount to deduct. Then the reduction created by Law 15,270/2025 applies.
3. New in 2026: exemption up to R$ 5,000.00
Law 15,270/2025 created a monthly tax reduction starting January 2026. With taxable income up to R$ 5,000.00, the reduction (up to R$ 312.89) brings the tax to zero. Between R$ 5,000.00 and R$ 7,350.00 it shrinks in a straight line: 978.62 − 0.133145 × income. Above R$ 7,350.00, nothing changes. The reduction uses gross income, not the base, and never exceeds the tax from the table.
| Monthly taxable income | Tax reduction |
|---|---|
| Up to R$ 5,000.00 | Up to R$ 312.89: the tax drops to zero |
| R$ 5,000.00 to R$ 7,350.00 | 978.62 − (0.133145 × income) |
| Above R$ 7,350.00 | No reduction |
4. Other deductions
Transport voucher (up to 6% of salary), child support, health plan and other deductions come out of net pay; only child support lowers the tax base. FGTS (8%) is paid by the employer and is not deducted from you.
In short: net = gross − INSS − income tax − other deductions.
Worked example
Gross salary of R$ 6,000.00, no dependents and no other deductions:
- INSS from the progressive table: R$ 641.51.
- Legal deductions (INSS, dependents and child support): R$ 641.51. They exceed the R$ 607.20 simplified discount, so they are used.
- Taxable base: R$ 6,000.00 − R$ 641.51 = R$ 5,358.49.
- Table: R$ 5,358.49 × 27.5% − R$ 908.73 = R$ 564.85.
- Reduction: 978.62 − (0.133145 × R$ 6,000.00) = R$ 179.75, capped at the tax. Tax due: R$ 385.10.
- Net: R$ 6,000.00 − R$ 641.51 − R$ 385.10 = R$ 4,973.39.
Frequently asked questions
Do people earning up to R$ 5,000 pay income tax in 2026?
Not through payroll withholding. Since January 2026, monthly taxable income up to R$ 5,000.00 has its withheld tax brought to zero by the Law 15,270/2025 reduction. INSS is still deducted. People with more than one source of income may still owe tax in the annual return.
How do I calculate net salary in Brazil?
Subtract INSS from gross pay (progressive table from 7.5% to 14%), then income tax (on gross minus INSS and other deductions, or minus the R$ 607.20 simplified discount) and finally other deductions such as transport voucher and health plan.
What is the maximum INSS deduction in 2026?
R$ 988.09 a month, for salaries at or above the R$ 8,475.55 ceiling. Above the ceiling, the deduction does not grow.
What is the simplified income tax discount?
A fixed R$ 607.20 monthly deduction that replaces all legal deductions (INSS, dependents and child support). The employer uses whichever is better for you: the simplified discount or the sum of deductions.
How much does each dependent lower the tax?
Each dependent lowers the monthly tax base by R$ 189.59. It only changes the tax when legal deductions exceed the R$ 607.20 simplified discount.
Is FGTS deducted from my salary?
No. FGTS (8% of gross pay) is deposited by the employer into an account in your name, on top of your salary, and is not a deduction on the payslip.
Legal basis and official sources
Every figure was checked against the sources below on 10/29/2026. Sources are in Portuguese.
- Portaria Interministerial MPS/MF nº 13, de 9/1/2026 (tabela do INSS) gov.br
- Receita Federal: tabelas do IRPF 2026 gov.br
- Receita Federal: exemplos de aplicação da Lei nº 15.270/2025 gov.br
- Lei nº 15.270, de 26/11/2025 planalto.gov.br
- Lei nº 15.191, de 11/8/2025 planalto.gov.br
- Lei nº 9.250/1995 planalto.gov.br
- Lei nº 7.418/1985 planalto.gov.br
Estimate based on the general rules of Brazil's labor code (CLT) and the official 2026 tables. Collective agreements, extra pay, absences and specific deductions change the final amount: check your payslip or termination statement.