Overview

• Deputies voted 493–0 to expand exemption to monthly incomes up to R$5,000 and send the measure to the Senate, with the government seeking approval by year‑end for rules to apply to 2026 income.
• Relator Arthur Lira kept the full exemption at R$5,000, extended partial relief up to R$7,350, and adjusted the discount calculation to broaden relief without breaching fiscal limits.
• The compensation pillar creates a minimum tax that rises to 10% for very high earners (above R$600,000 a year, reaching the ceiling from R$1.2 million) and adds a 10% withholding on monthly dividends above R$50,000, affecting about 141,000 taxpayers.
• The Finance Ministry estimates roughly 10 million people will stop paying income tax and about 15–16 million will benefit in total through full or partial relief if the bill is enacted.
• Fiscal impact estimates range from about R$25.8 billion to R$31.3 billion in 2026, with the text including mechanisms to compensate states, the Federal District, and municipalities for lost transfers.