Brazil Sets R$5,000 Monthly Salary Exemption, With Tax Still Due for Combined Income

Overview

• Effective January 1, 2026, the new IRPF rules stop withholding for single salaries below R$5,000 per month.
• Income from multiple sources, including wages, pensions and informal work, must be aggregated for annual assessment.
• Employees earning under R$5,000 at a formal job who add app-based or other side income can exceed the threshold and owe tax at filing.
• Using the 2026 minimum wage of R$1,621, two minimum-wage salaries plus two in retirement total R$6,484, which surpasses the exemption.
• Combined monthly income between R$5,000 and R$7,350 qualifies for relief applied in the 2027 return, while the 2026 filing still reflects 2025 rules; experts advise setting money aside during 2026.