Income Tax 2026: Deadline, Who Needs to Declare & Changes

Brazil’s annual individual income tax filing season is set to begin shortly, with the deadline for submitting 2025 tax returns set for May 29, 2026. The Receita Federal, Brazil’s federal revenue service, is finalizing details ahead of the launch, which is expected to occur in March.

The official start date for filing is anticipated to be announced next week. Taxpayers can expect to have approximately two and a half months to complete their filings. The pre-filled return option, which automatically populates forms with available data, will be available from the start of the filing period.

The regulations for the 2026 income tax adjustment declaration will be published in the “Diário Oficial da União” and released by the Receita Federal on Monday, March 16. This announcement will provide clarity for taxpayers preparing their returns.

Last year, 45.64 million individuals filed their income tax returns, representing 41% of Brazil’s economically active population, which stood at 110.7 million in February of last year, according to the Brazilian Institute of Geography and Statistics (IBGE).

Who is Required to File

For 2025, individuals who earned taxable income exceeding R$33,888.00 (approximately $6,777 USD) in 2024 were required to file an income tax return. According to estimates from Confirp Contabilidade’s tax director, Welinton Mota, the threshold for 2026 is projected to be R$35,584.00 (approximately $7,116 USD) for income earned in 2025, though this figure remains subject to confirmation by the Receita Federal.

Based on last year’s rules, which are not expected to change, the following individuals must similarly file a return for 2025:

• Those who received taxable income, such as salaries, pensions, or rental income, exceeding R$33,888;
• Individuals with tax-exempt, non-taxable, or exclusively source-taxed income exceeding R$200,000;
• Those with gross rural activity income exceeding R$169,440;
• Individuals who realized capital gains from the sale of assets or rights;
• Those who engaged in transactions on stock exchanges, commodity exchanges, or futures markets totaling more than R$40,000;
• Day traders with profits from same-day stock transactions;
• Those who sold stocks with profits in months with trading volumes exceeding R$20,000;
• Individuals who owned assets or rights valued at more than R$800,000 as of December 31;
• Those who became residents of Brazil during 2025;
• Individuals who declared assets or holdings in foreign entities;
• Beneficial owners of foreign trusts;
• Those who updated foreign assets to market value or received financial income from foreign entities;
• Those who opted for capital gains tax exemption on the sale of residential property, provided they reinvested the proceeds in another property within 180 days.

When Will Refunds Begin?

Following recent years’ patterns, the payment of refunds is expected to begin in late May. The first batch is tentatively scheduled for release on May 29, with the fifth and final batch anticipated on September 30.

Changes to Income Tax for Those Earning Up to R$5,000

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With the new income tax table, those earning up to R$5,000 per month will be fully exempt from the tax (Photo: Banco de imagens)

Law 15.270/2025 established the new rules aimed at relieving the burden on Brazil’s middle class (Photo: Banco de imagens)

Approximately 16 million taxpayers will no longer have income tax withheld from their paychecks each month (Photo: Banco de imagens)

For those earning R$4,500, the annual savings reach R$2,700 extra in the family budget (Photo: Banco de imagens)

For those with a formal employment contract (CLT) or INSS retirees, the change in the payslip is automatic since January (Photo: Banco de imagens)

The annual adjustment period begins on March 1, with encouragement to use the pre-filled return (Photo: Banco de imagens)

To offset the exemption, the government created a Minimum Tax on income above R$600,000 annually (Photo: Banco de imagens)

Economists predict that the “extra” money in workers’ pockets will help boost consumption and savings (Photo: Banco de imagens)