Overview

• Deputies voted 493–0 to approve the bill and forward it to the Senate, with the government seeking approval this year so the new rules apply in 2026.
• The measure grants full exemption to monthly incomes up to R$5,000 and a tapered discount for earnings through R$7,350.
• Revenue offsets include a minimum effective tax of up to 10% for annual incomes above R$600,000 and new withholding on certain dividends and foreign remittances.
• About 15–16 million people would benefit in 2026, while roughly 141,000 high‑income taxpayers would be subject to the minimum tax.
• Fiscal estimates cite a R$25.8 billion cost in 2026 versus R$34.1 billion in projected compensatory revenue, and the bill requires the Executive to propose within a year a policy to keep the IR table updated.