Brazil Personal Tax Deductions 2026: What You Can Claim and Save

Last reviewed: November 2026 · Reviewed by Stéphane Gombauld, tax expert, technologist and digital nomad

You are a Brazilian tax resident with salary, freelance or pension income, and you want to keep more of it. This guide covers each deduction for tax year 2026, the figures that changed, and how to pick your return model.

Brazil personal tax deductions in 2026: the key figures

What changed for 2026

• Big new reduction. Law 15.270/2025 adds a tax reduction from January 2026. It wipes out the tax on monthly taxable income up to R$5,000 (R$60,000 a year). It then shrinks linearly to zero at R$7,350 a month (R$88,200 a year).
• Higher simplified cap. The annual simplified discount cap rises from R$16,754.34 (tax year 2025) to R$17,640 for tax year 2026.
• Dividends and high earners. From 1 January 2026, once one company pays you more than R$50,000 of dividends in a month, 10% is withheld on the whole amount. A minimum tax (IRPFM) applies to annual income above R$600,000, reaching 10% at R$1.2 million (PwC summary, secondary).
• Unchanged amounts. The dependant deduction (R$2,275.08) and the education cap (R$3,561.50) stay at their tax year 2025 values.

Is this guide for you?

Read on if you…

• are a Brazilian tax resident with salary, freelance or pension income;
• pay for private health insurance, school fees or a private pension plan;
• want to know whether the complete return beats the simplified one.

Probably not your case if you…

• are a non-resident: your Brazilian income is taxed by final withholding, without personal deductions;
• earn only investment income, which is taxed at flat rates that ignore these deductions.

How do deductions work in Brazil in 2026?

Brazil taxes residents' earned income on a progressive table from 0% to 27.5%. Deductions shrink the taxable base: the amount the table applies to. They do not cut the tax directly, except incentive donations.

Tax is collected during the year. Your employer withholds it, or you pay it yourself through the carnê-leão, the monthly self-assessment for foreign or self-employed income. The annual return, the DIRPF (Declaração de Ajuste Anual), then settles the year.

The 2026 annual table

The Receita Federal 2026 tables set the annual bands for the return you file in 2027:

The new reduction, and why it matters for deductions

Here's the catch. The Law 15.270/2025 reduction is measured on your gross taxable income, not on the base after deductions. Between R$60,000.01 and R$88,200, the reduction equals R$8,429.73 minus 0.095575 times your taxable income.

So at R$80,000 of taxable income, the reduction is R$783.73. Below R$60,000, your tax is zero whatever you deduct. Above R$88,200, deductions work exactly as before.

Complete or simplified return?

At the annual return you choose one model:

• Complete model (declaração completa). You itemise every allowed deduction, with receipts.
• Simplified model (desconto simplificado). You take 20% of taxable income, capped at R$17,640, and drop all itemised deductions.

The Receita Federal FAQ is clear: choose the simplified discount and you lose the legal deductions. Run both versions in the filing program before you submit. One trap for leavers: the simplified discount is not allowed on the departure return (PwC, secondary).

Which expenses can you deduct?

Health

This is Brazil's most generous deduction. Health costs for you and your declared dependants are deductible with no cap. Costs covered by insurance or reimbursed are excluded, and so are a companion's costs during a hospital stay.

Doctors, dentists, psychologists, hospitals and health plans paid to Brazil-based companies qualify. Nutritionists and nurses do not. One limit worth knowing: premiums paid to medical insurers located outside Brazil are not deductible (PwC, secondary).

Education

Education for you and your dependants is deductible. The cap is R$3,561.50 per person per year. Foreign-language courses and exam-prep courses (cursinhos) do not qualify. Nor do uniforms, school materials or school transport.

Dependants

Each dependant reduces your base by R$2,275.08 a year. Who counts:

• children and stepchildren up to 21;
• children and stepchildren up to 24 still in higher education or technical school;
• parents, grandparents and great-grandparents whose 2025 income, taxable or not, was up to R$28,467.20.

Every dependant needs a CPF, whatever their age. The trade-off: your dependant's income must join your return.

Pensions and social security

• Official social security (INSS) contributions you pay are deductible.
• PGBL private pension contributions are deductible up to 12% of taxable income. The plan provider must be located in Brazil (PwC, secondary).
• VGBL plans are not deductible. They make more sense for people who file the simplified model.

Self-employed costs and alimony

Self-employed professionals can deduct costs needed to earn their fees: office rent, staff with formal payroll, running costs. You record them in the livro-caixa, the professional cash book. Our guide to business expenses in Brazil goes deeper.

Alimony is deductible when it is set by a court decision, a court-approved agreement or a public deed. Amounts fixed by an arbitral award are not.

What benefits cut the tax directly?

A few items reduce the tax itself, not the base. They work only in the complete model.

1. Incentive donations. Gifts to funds for children and adolescents, and to elderly funds, reduce tax due. Cultural and sports projects also qualify. The combined limit is 6% of the tax due (PwC, secondary).
2. The 65+ pension slice. If you are 65 or older, R$1,903.98 a month of retirement or pension income is exempt, on top of the normal bands.
3. The Law 15.270/2025 reduction. It applies automatically, in both models.

Good news for newcomers: all of this applies from your first year as a resident. The residence tests are in our guide to tax residency in Brazil.

How do you claim deductions, step by step?

1. Get a CPF and a gov.br account. You need both to file. Our practical guide to obtaining your tax residency in Brazil covers the registrations.
2. Register dependants with a CPF. Every dependant needs one, whatever their age.
3. Collect receipts all year. Each should identify the provider by CPF or CNPJ.
4. Use the pre-filled return. It pulls in health and income data reported by third parties.
5. Compare both models. The program shows which gives the lower tax.
6. File on time. The 2026 return (tax year 2025) was due between 23 March and 29 May 2026. The window for tax year 2026 is set early in 2027.

You must file if, among other tests, your taxable income exceeded R$35,584 in 2025 or you had income from financial investments abroad.

Common mistakes (and what they cost)

• Deducting without proper receipts. Health items are a frequent reason returns fall into the malha fina, the Receita's automated review. Unproven items are cut and the extra tax is charged with interest and penalties.
• Paying into a PGBL while filing the simplified model. The deduction is simply lost, so the main reason for choosing a PGBL disappears.
• Leaving out a dependant's income. It must join your return. Omitting it leads to an assessment of the missing tax.
• Claiming language courses as education. They are excluded. The Receita cross-checks school data.
• Filing late. The fine is 1% of the tax per month, up to 20%, with a minimum of R$165.74.

Frequently asked questions

What can I deduct from my income tax in Brazil in 2026?

Residents can deduct health costs without a cap, education up to R$3,561.50 per person, R$2,275.08 per dependant, official social security contributions, PGBL contributions up to 12% of taxable income, qualifying alimony and, for the self-employed, cash-book business costs. All of these require the complete return model.

What is the simplified discount in Brazil for 2026?

It is a flat 20% deduction from taxable income, capped at R$17,640 for tax year 2026, up from R$16,754.34 for 2025. It replaces every itemised deduction and needs no receipts. Run both models in the filing program and keep the one with the lower tax.

Is income up to R$5,000 a month really tax-free in 2026?

Yes, in effect. Law 15.270/2025 grants a reduction that brings the tax to zero on monthly taxable income up to R$5,000, or R$60,000 a year. The reduction shrinks linearly and disappears at R$7,350 a month, or R$88,200 a year. Above that, the normal table applies, up to 27.5%.

Can I deduct health costs paid abroad?

Health costs are deductible without a cap when they are not reimbursed, and they need proper documentation. One clear exclusion: premiums paid to medical insurers located outside Brazil are not deductible. Keep detailed invoices and convert amounts to reais. For large foreign bills, check the Receita's annual Q&A before filing.

Can non-residents claim deductions in Brazil?

No. Non-residents are taxed only on Brazilian-source income, by final withholding. The 2026 tables set 25% on work and service income and 15% on most other income. Pensions follow the progressive table. No annual return is filed, so personal deductions apply only once you become resident.

Is a PGBL pension worth it in Brazil?

It can be, if you file the complete model and sit in the higher bands. Contributions up to 12% of taxable income are deducted now, at up to 27.5%, and taxed later on withdrawal. The plan must be with a Brazilian provider. If you use the simplified model, a VGBL is usually the better fit.

Related guides

• Tax residency in Brazil – when you start filing as a resident
• Business expenses in Brazil – what freelancers and companies can deduct
• Tax incentives for expats and digital nomads in Brazil – the real levers for newcomers
• Capital gains tax in Brazil – flat rates that ignore these deductions
• Tax landscape overview of Brazil – every Brazilian tax in one page
• Personal tax deductions and benefits of Paraguay – how the neighbour compares
• Personal tax deductions and benefits of Mexico – the other big Latin American base
• All country tax guides

Sources

• Tabelas de tributação de 2026 – Receita Federal
• Perguntas frequentes IRPF – Receita Federal
• Perguntas e Respostas IRPF 2026 – Receita Federal
• Novidades do Imposto de Renda 2026 – Receita Federal
• Brazil – Individual deductions – PwC Worldwide Tax Summaries (secondary)
• Brazil – Individual income determination – PwC Worldwide Tax Summaries (secondary)

This guide is general information, not personalised tax advice. See how we research and review.