Income tax exemption is a highly sought-after benefit, and not everyone knows all the rules for taking advantage of it. Learn about the requirements and the changes likely to be implemented soon!
General exemption range for workers
Until April 2025, the monthly income tax exemption range was up to R$2,259.20, with progressive rates applicable beyond that amount. However, after the minimum wage was adjusted to R$1,518 in 2025, the government fixed this range at least until May, maintaining the exemption for those earning up to R$3,036 per month, the equivalent of two minimum wages.
Proposal to increase the exemption: up to R$5,000
An important milestone is underway: the government has submitted a bill to Congress providing for full income tax exemption for those earning up to R$5,000 per month, with partial exemption for all those earning between R$5,000 and R$7,000. If approved, the measure will take effect in 2026, benefiting approximately 10 million Brazilians with full exemption, and others with reduced rates.
Benefits for retirees and pensioners over 65 years of age
In addition to this general exemption, retirees and pensioners aged 65 or older are entitled to an additional tax-exempt portion. Now in 2025, this additional amount is R$1,903.98 per month, resulting in up to R$22,847.76 per year tax-free. In specific cases involving the INSS (National Institute of Social Security), the double exemption already totals approximately R$49,810.96 per year.
Exemption due to serious illnesses
Retired taxpayers or even pensioners diagnosed with serious illnesses (such as cancer, AIDS, severe heart disease, multiple sclerosis, or Parkinson's) are exempt from income tax on retirement, pension, or retirement income. Obtaining this status requires the presentation of an official medical report and formalization with the paying agency.
Released from the obligation to declare
Even without a tax exemption on the discount, some people are exempt from submitting an IRPF declaration:
- Anyone who had taxable income below R$33,888 in the year (equivalent to approximately R$2,824 per month)
- Anyone who had exempt income or income taxed exclusively at source that totaled up to R$200,000 in the year.
- Anyone who had assets (such as real estate or investments) valued at up to R$800,000 on December 31, 2024
- Rural producers with annual gross revenue of up to R$169,440
- People with serious illnesses, retirees and other groups already mentioned may also be exempt, depending on the situation.
Other information about the exemption
In addition to income brackets and retirees, other groups can benefit from income tax exemptions. People with serious illnesses, such as cancer, AIDS, severe heart disease, multiple sclerosis, and Parkinson's disease, are entitled to exemptions on their retirement income, pensions, or retirement benefits, provided they present an official medical report proving their condition. Rural producers with annual gross revenue below a specific threshold may also be exempt from filing or paying tax. Furthermore, taxpayers who receive income exclusively from financial investments taxed at source may not need to file a tax return, depending on the total amount. The exemption also applies to those with limited assets or income below the annual ceiling. These rules seek to protect the most vulnerable taxpayers, ensuring that people with lower economic resources or in special situations are not burdened by the tax, promoting tax justice and social inclusion.
Highlights
- Current exemption range: up to R$2,259.20 (with expected correction up to R$3,036)
- Proposal under debate: exemption up to R$5,000, partial up to R$7,000 from 2026
- Special groups: elderly people (over 65 years old) and people with serious illnesses have
- Exempted from declaring: those who earn little, have few assets, or meet specific criteria
