How it works
Brazilian payroll takes two statutory amounts out of your gross pay before you ever see it: INSS, the employee social security contribution, and IRRF (Imposto de Renda Retido na Fonte), the income tax withheld by your employer. This page uses the 2026 rules: the INSS table of Portaria Interministerial MPS/MF 13/2026 and the IRRF table plus the new reduction created by Law 15.270/2025, both published by the Receita Federal and the INSS.
INSS: progressive rates up to a ceiling
Since the 2020 reform each slice of your salary is charged at its own rate, like a tax bracket: 7.5% up to R$1,621.00, 9% up to R$2,902.84, 12% up to R$4,354.27 and 14% up to R$8,475.55. Anything above R$8,475.55 (the teto) is not charged, so the maximum monthly INSS in 2026 is R$988.09.
IRRF: exemption up to R$5,000 and gradual reduction up to R$7,350
Income tax is first computed with the progressive monthly table (7.5%, 15%, 22.5% and 27.5%, with deduction amounts, starting above R$2,428.80). The base is the gross salary minus INSS minus R$189.59 per dependent, or minus the simplified deduction of R$607.20 when that is better for you. From 2026 a reduction is then subtracted from the tax: up to R$5,000 of monthly taxable pay the reduction cancels the tax completely; between R$5,000.01 and R$7,350.00 it equals R$978.62 minus 0.133145 times the monthly taxable pay; above R$7,350.00 there is no reduction.
IRRF = tax from table − reduction
- reduction = up to R$312.89 when pay ≤ R$5,000
- reduction = 978.62 − 0.133145 × pay when R$5,000 < pay ≤ R$7,350
- reduction = 0 above R$7,350
Worked example
With a gross salary of R$6,000.00 a month and no dependents: INSS is R$641.51, the tax base is R$5,358.49, the table gives R$564.85 of tax, the reduction is R$179.75 (978.62 − 0.133145 × 6,000) and the IRRF is R$385.10. Net salary: R$4,973.39 a month. At R$5,000 a month INSS is R$501.51, IRRF is zero and net pay is R$4,498.49; at R$8,000 INSS is R$921.51, IRRF is R$1,037.85 and net pay is R$6,040.64.
FGTS, vale-transporte and what this calculator leaves out
FGTS (8%) is paid by the employer on top of your salary and is not deducted, so it is shown only as a note. The optional vale-transporte discount is 6% of the base salary. Not modelled: 13th salary, vacation pay, overtime, pensão alimentícia, health plan and other payroll discounts, and the annual declaration adjustment. The yearly numbers are the monthly values multiplied by 12.