Brazil Income Tax Calculator 2026 — IRPF Monthly + CLT vs MEI

Brazil's IRPF (Imposto de Renda Pessoa Física) uses a monthly calculation system with progressive brackets applied to monthly income. The 2026 brackets are: 0% up to R$2,259.20/month; 7.5% on R$2,259.21–R$2,826.65; 15% on R$2,826.66–R$3,751.05; 22.5% on R$3,751.06–R$4,664.68; and 27.5% above R$4,664.68. Brazil applies a "deduction formula" (parcela a deduzir) to simplify the calculation rather than taxing each bracket separately.

MEI is a simplified registration for self-employed individuals earning up to R$81,000/year (R$6,750/month). MEIs pay a fixed monthly DAS contribution: R$71.60 for most activities (INSS) + R$5 (ISS for services) or R$1 (ICMS for commerce/industry). There is NO income tax under MEI — it is a single fixed amount regardless of revenue within the limit. However, distributions above the MEI profit basis may be subject to IRPF.

There is no limit on the number of dependents you can claim. Each dependent reduces your monthly taxable income by R$189.59/month (R$2,275.08/year). Qualifying dependents include: spouse, children under 21 (or under 24 if in university), disabled children of any age, parents/grandparents with monthly income under R$2,259.20, and others who are financially dependent on you. Education expenses are also deductible per dependent (up to R$3,561.50/year per student for the annual return).

On the annual IRPF return (due April 30), you can deduct: medical/dental/health expenses — unlimited deduction for most medical costs including health plan premiums; education — limited to R$3,561.50 per person per year for taxpayer and dependents (daycare through graduate school). These are claimed on the annual declaration and result in a refund or additional tax due. The monthly withholding (carnê-leão or employer IRRF) uses only the simplified deductions.

On the annual IRPF return, Brazilians choose between: (1) Simplified deduction — 20% of gross income, capped at R$16,754.34/year, no documentation required; (2) Complete (itemized) — actual deductions for dependents, medical, education, INSS, etc. Choose whichever yields a lower tax bill. For most salaried employees with dependents and health plans, the complete deduction is better. The monthly IRRF withheld by employers already accounts for dependents declared on Form DCTF.