The House of Representatives unanimously approved, on Wednesday night (1st), the bill that expands the Exemption of Exemption from Individual Income Tax (IRPF) to those who receive up to R $ 5,000 monthly. The text, reported by Deputy Arthur Lira (PP-AL), now goes to the Federal Senate.
The proposal, considered a priority by the government of Luiz Inácio Lula da Silva (PT), also provides partial discount for income up to R $ 7,350. According to estimates from the rapporteur, about 16 million Brazilians will no longer pay the tax from 2026.
To compensate for the tax waiver, calculated at R $ 25.8 billion in the first year and R $ 100.6 billion by 2028, the text creates a progressive minimum tax on high income, applicable to taxpayers with earnings over R $ 600 thousand annual.
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The rate will reach 10% for rent over R $ 1.2 million. In addition, dividends over $ 50,000 per month will be taxed.
Political dispute
The exemption is a Lula campaign promise and is seen within the Plateau as one of the main electoral assets of 2026. Almost unanimous approval in the House reflects the breadth of political support to the text, which received more than 90 amendments before being closed.
to preserve Prouni (University for All Program) and financial compensations for states and municipalities.
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Behind the scenes, the expectation is quickly processed in the Senate. Institutional Relations Minister Gleisi Hoffmann said she has observed “great receptivity” among senators.
President Lula also reinforced, in a publication on the X (former Twitter), his confidence in Swept approval: “I am sure that the proposal will also have ample support in the Senate.”
Concurrent text
At the same time, a similar bill is being processed, reported by Renan Calheiros (MDB-AL) and authored by Eduardo Braga (MDB-AM), which sets the exemption at R $ 4,990 and expands taxation of higher bands.
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Despite having advanced before, the tendency is to prevail the text approved in the House, for having the political weight of the government’s authorship and the direct articulation with the Ministry of Finance, under Fernando Haddad.
For the measure to take effect in 2026, the text needs to be approved in the Senate and sanctioned later this year. If confirmed, it will be the largest expansion of the IR exemption range since the creation of the Progressive Table in 1995.
