:strip_icc()/i.s3.glbimg.com/v1/AUTH_63b422c2caee4269b8b34177e8876b93/internal_photos/bs/2023/4/T/Ab3RV6QpmddZMoQ6iVjA/233914878.jpg "See the new updated IRRF table for 2024, with new deduction ranges | Brazil")
The government updated last Tuesday (6) the new table of Withholding income tax (IRRF) of 2024by Provisional Measure No. 1,206/2024. Now, anyone earning up to two minimum wages, equivalent to R$2,824, will be exempt from paying the tax in 2024.
According to the Ministry of Finance, 15.8 million Brazilians will not need to pay Income Tax in 2024. The ministry also informed that the measure is valid “for employees, self-employed people, retirees, pensioners and other individuals who receive up to R$2,824”.
After publication, the MP is forwarded to the National Congress for analysis, which must take place within a period of up to 120 days.
With the increase in the exemption value for Income Tax, the federal government will forego revenue of R$3.03 billion in 2024. The value increases to R$3.53 billion in 2025 and to R$3.77 billion in 2026.
After all, why did the government update the IRRF table in 2024?
The ceiling for exemption from Personal Income Tax (IRPF) was R$2,640. The amount referred to two minimum wages in 2023. After the correction of the minimum wage, which went from R$1,320 to R$1,412 in 2023, workers who received less than two wages would have to pay the tax to the Federal Revenue Service.
The government, therefore, changed the first range of the IRPF monthly progressive table with the MP, increasing the application limit of the zero rate by 6.97%. Therefore, the current value goes from R$2,112.00 to R$2,259.20.
Taxpayers with income of up to R$2,824.00 per month will benefit from the exemption because, from this income, the simplified discount of R$564.80 is subtracted, resulting in a monthly calculation base of R$2,259.20, or that is, exactly the maximum limit of the zero rate range of the new table.
It is worth mentioning that the discount of R$ 564.80 is optional, that is, those who are entitled to greater discounts under current legislation (social security, dependents, food) will not be harmed in their deductions (complete declaration).
See the IRRF table in 2024, updated with new deduction ranges:
Withholding Income Tax Table (IRRF) in 2024
Calculation Base (R$) Rate (%) Portion to be Deducted from IR (R$) Up to 2,259.20 0 0 From 2,259.21 to 2,826.65 7.5 169.44 From 2,826.66 to 3,751.05 15 381 .44 From 3,751.06 to 4,664.68 22.5 662.77 Above 4,664.68 27.5 896