New Income Tax Table Exempts Those Earning Up to 2 Minimum Wages


Brazil begins 2024 with a significant update to the Personal Income Tax (IRPF) table, announced by the government. From now on, individuals earning up to BRL 2,824.00 per month — an amount equivalent to two minimum wages — are exempt from paying Income Tax. This measure, regulated through a Provisional Measure (MP) published in the Official Gazette on February 7, is effective immediately, reflecting on salaries paid from this month onwards.

This reform in the IRPF taxation represents the second amendment made by the government’s administration, marking a continuation in fiscal adjustment policies aimed at reducing the tax burden on the population segment with lower incomes. Before this initiative, the last update to the IR table had occurred in 2015, remaining unchanged until May 2023, when the government also raised the exemption threshold to up to two minimum wages.

The novelty this time focuses exclusively on expanding the exemption range, without making adjustments to the other taxation ranges. Thus, the tax rates and income limits for the subsequent ranges remain unchanged. For example, monthly incomes above BRL 4,664.68 continue to be subject to the maximum rate of 27.5%. Additionally, the deduction values per dependent, with expenses in education, and the maximum deduction limit for the simplified declaration were maintained, respectively, at BRL 2,275.08, BRL 3,651.50, and BRL 16,754.34.

The exemption for those earning up to two minimum wages aims to improve the purchasing power and quality of life of this group of taxpayers, reinforcing the importance of fiscal policies that consider the needs of different population segments.


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