IR: See how the discount table behaves after increasing the exemption range

All workers will be affected by the change; see simulation

The provisional provision (MP) which extends the exemption range from art Income tax for natural persons (IRPF) entered into force this Monday (1). With the change, in practice, workers who receive up to R$ 2,640 are exempt, i.e. two minimum wages.

Still, all workers will be affected, even if they receive more than the new exemption band. This because the tax is not levied on all wages — applies only to amounts exceeding the tax-free or reduced tax bands (see the simulation table at the end of the article).

President Lula has promised throughout his electoral campaign that he will exempt the collection of income tax for those earning up to R$ 5,000, but ties the provision to the approval of the tax reform.

The change, however, does not apply to IRPF returns submitted this year.

What are the new income brackets?

The Irpef account depends on a table divided into four income brackets, with a progressive rate ranging from 7.5% to 27.5%.

• Track 1: Up to BRL 2,112.00: exempt

• Track 2: From BRL 2,112.01 to BRL 2,826.65: 7.5%

• Track 3: From BRL 2,826.66 to BRL 3,751.05: 15%

• Track 4: From BRL 3,751.06 to BRL 4,664.68: 22.5%

• Track 5: Over BRL 4,664.68: 27.5%

The installments to be deducted from personal income tax by salary range were as follows:

• Track 1: free

• Track 2: BRL 158.40

• Track 3: BRL 370.40

• Track 4: BRL 651.73

• Track 5: BRL 884.96

See the 2024 income tax calculation simulation:

Source: Terra

Rose

Rose James is a Gossipify movie and series reviewer known for her in-depth analysis and unique perspective on the latest releases. With a background in film studies, she provides engaging and informative reviews, and keeps readers up to date with industry trends and emerging talents.