With exemption up to R $ 5,000, Brazil will have only 16% of the population paying IRPF, one of the smallest percentages in the world; about 11 million people will no longer declare
It will no longer be paid for about 11 million people in 2026 compared to 2025. The Chamber on Wednesday (1st.out.2025) the exemption for those who receive up to R $ 5,000 per month. The Senate should endorse the proposal in the coming days. It was a campaign promise of the president (PT).
With the change, the base of income tax payers in Brazil should fall from 44 million in 2025 to close to 34 million in 2026. Poder360 made based on exempt from the government. It already considers the organic growth of the basis of statements (an average of 1.1 million in 2023 and 2024).
The updated number of declarants will return to 2020 in the pandemic. People benefited from the new proposal will no longer pay tax from January 1 of next year, but will only be required to send their statements in 2027.
66th Global position
In 2022, Brazil ranked 66th in a ranking of 139 countries by proportion of income tax pays x population. There are no more up -to -date comparative data than these.
The 2022 data is listed in one of (Organization for Economic Cooperation and Development) that uses information from. With the new IR exemption, the country tends to make a worse position.
In the infographic below, it is clear that, usually, the higher the proportion of the population paying taxes on income, the more developed the country is:
The highest percentage than average in some countries can be explained by the universalization of registration and retention at the source of income taxes. This happens in Nordic economies, for example. All who work and receive pension, tax benefit or interest enter the declaration systems, even if they receive money back or do not pay anything to the government.
As the Poder360the exemption of income tax up to R $ 5,000 tightly the South and Southeast regions, which have more formal workers and are historically richer.
They will stop paying IR from 10 million to 11 million people, according to the government. Another about 5 million to 6 million will have a discount for receiving in the range of $ 5,000 to $ 7,350 per month.
This exemption is a campaign promise from Lula. There was no calculation to reach this round value of $ 5,000. It was a political decision of the petista.
Campaign promise
One of Lula’s main promises, the IR exemption was mentioned by the petista at least 20 times during the campaign, after he was elected and already in office:
Read more:
