South America
Brazil tax rates 2026
Residents are taxed on worldwide income. Dividends become taxable again in 2026, and a dual VAT, called CBS/IBS, begins a multi-year phase-in.
Worldwide (residence-based)
Last verified
The taxes
| Personal income (top) | 27.5%Progressive to 27.5%. From 2026, monthly income up to ~BRL 7,350 is exempt, and a new minimum tax (IRPFM) of up to 10% applies to very high incomes (>=BRL 1.2M/yr). |
|---|---|
| Corporate income | 34% |
| Capital gains | 15%–22.5%, progressive by size of gain. |
| VAT / IBS/CBS, replacing ICMS/ISS/PIS/COFINS. | ~26.5%, the IBS+CBS reference rate, phasing in 2026–2033. |
| Dividends (WHT) | 10%, starting in 2026. Previously exempt. |
| Interest (WHT) | 15% |
| Royalties (WHT) | 15% |
| Social security (employee) | 7.5%–14%, INSS, capped. |
| Social security (employer) | ~20% (INSS), plus other payroll charges. |
| Wealth tax | None |
| Inheritance / estate | ITCMD, a state tax of up to 8%. |
| Property tax | IPTU, an urban municipal tax, at roughly 0.3%–1.5% of assessed value. |
| Other | A consumption-tax reform is underway: CBS, a federal levy, and IBS, a subnational one, form a dual VAT phasing in from 2026. |
How the system works
- Tax system
- Worldwide (residence-based)
- Foreign income
- Taxed (worldwide)
- Taxes by citizenship
- No
- Exit tax
- No
- CFC rules
- Yes
- CRS
- Participating
A special regime for new arrivals
None favourable. Lei 14.754/2023 taxes offshore company profits annually at 15% whether or not distributed and treats foreign trusts as transparent to the settlor.
Rates checked July 2026: the top marginal income tax rate, the standard VAT rate and the main corporate rate.
Ways to relocate to Brazil
The residency and citizenship routes that lead here, weighed against the tax picture above.