Net Salary in Brazil 2026: How to Calculate INSS and Income Tax (with the New Exemption)

September 29, 2026

Net salary is what is left of the gross pay after the compulsory deductions – mainly social security (INSS) and income tax (IRRF) – and items such as the transport voucher or a health plan. In 2026 the maths changed: monthly pay up to R$ 5,000 no longer pays income tax. Here is how to work it out.

1. Deduct INSS (progressive table)

INSS is charged by bands: each rate applies only to the part of the salary inside its band.

Contribution salary (2026)	Rate
Up to R$ 1,621.00	7.5%
R$ 1,621.01 to R$ 2,902.84	9%
R$ 2,902.85 to R$ 4,354.27	12%
R$ 4,354.28 to R$ 8,475.55	14%

Above R$ 8,475.55 (the ceiling) the deduction stops growing. For a salary of R$ 3,000: 7.5% of R$ 1,621 (R$ 121.58) + 9% of R$ 1,281.84 (R$ 115.37) + 12% of R$ 97.16 (R$ 11.66) = R$ 248.60.

2. Work out the income-tax base

From the gross pay subtract the legal deductions – INSS, R$ 189.59 per dependant and court-ordered alimony – or the simplified deduction of R$ 607.20, whichever is larger. The result is the tax base.

3. Apply the IRRF table

Monthly tax base	Rate	Amount to deduct
Up to R$ 2,428.80	Exempt	–
R$ 2,428.81 to R$ 2,826.65	7.5%	R$ 182.16
R$ 2,826.66 to R$ 3,751.05	15%	R$ 394.16
R$ 3,751.06 to R$ 4,664.68	22.5%	R$ 675.49
Above R$ 4,664.68	27.5%	R$ 908.73

4. Apply the 2026 reduction

Law 15,270/2025 created a tax reduction: taxable income up to R$ 5,000 a month is exempt (the reduction cancels the table tax). Between R$ 5,000.01 and R$ 7,350 the reduction is R$ 978.62 − 0.133145 × income, shrinking to nothing. Above R$ 7,350 only the table applies.

Worked examples (no dependants)

Gross salary	INSS	Income tax	Net salary
R$ 1,621.00	R$ 121.58	R$ 0.00	R$ 1,499.42
R$ 3,000.00	R$ 248.60	R$ 0.00	R$ 2,751.40
R$ 5,000.00	R$ 501.51	R$ 0.00	R$ 4,498.49
R$ 7,000.00	R$ 781.51	R$ 754.74	R$ 5,463.75
R$ 10,000.00	R$ 988.09	R$ 1,569.55	R$ 7,442.36

Take R$ 7,000: the base is R$ 7,000 − R$ 781.51 = R$ 6,218.49; the table gives 27.5% − R$ 908.73 = R$ 801.35; the reduction is R$ 978.62 − 0.133145 × 7,000 = R$ 46.61; the tax is R$ 754.74.

Other common deductions

Transport voucher: up to 6% of the base salary (if you use it).
Health plan, meal voucher, authorised union dues: depending on the employer and the collective agreement.
Alimony: taken from the net pay and deductible from income tax.

FGTS is not deducted: it is 8% paid by the employer on top of the salary.

Work out yours

The net salary calculator does all of this with your figures – overtime, dependants, alimony, transport voucher and other deductions – and shows every INSS and tax band. For the 13th salary and vacation pay, which are taxed on their own, use the 13th salary calculator and the vacation pay calculator.

Figures from the official 2026 tables (Interministerial Ordinance MPS/MF no. 13/2026 and Receita Federal). Always check your payslip.

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