Hello! ORGATEC brings you important news that will directly impact your wallet: the new monthly Income Tax table, which takes effect starting in May 2025. This change is due to Provisional Measure 1,294, published on April 11, 2025.
The Main Change: Expanded Exemption
The main change is the exemption from withholding income tax for those earning up to two minimum wages per month, which is equivalent to R$3,036, considering the minimum wage of R$1,518.00 in 2025.
Other Brackets Also Adjusted
The good news doesn’t stop there! The other income brackets also had slight adjustments in the deductions, which means that even those not in the exemption bracket will pay a bit less income tax starting in May.
Comparison of Tables (Monthly)
To help you visualize the changes, see the old and new tables:
- Old Table (in effect until April 2025):
- Up to R$2,259.20: 0% (Deduction: R$0)
- From R$2,259.21 to R$2,826.65: 7.5% (Deduction: R$169.44)
- From R$2,826.66 to R$3,751.05: 15% (Deduction: R$381.44)
- From R$3,751.06 to R$4,664.68: 22.5% (Deduction: R$662.77)
- Over R$4,664.68: 27.5% (Deduction: R$896.00)
- New Table (effective from May 2025):
- Up to R$2,428.80: 0% (Deduction: R$0)
- From R$2,428.81 to R$2,826.65: 7.5% (Deduction: R$182.16)
- From R$2,826.66 to R$3,751.05: 15% (Deduction: R$394.16)
- From R$3,751.06 to R$4,664.68: 22.5% (Deduction: R$675.49)
- Over R$4,664.68: 27.5% (Deduction: R$908.73)
Understanding the Exemption for Those Earning Up to R$3,036
You might be wondering: how can someone earning R$3,036 be exempt if the exemption bracket in the table is R$2,428.80? The answer lies in the taxable base, which is not the gross salary. The government offers a simplified deduction of R$607.20.
Practical Example: If you earn R$3,036 per month and use the simplified deduction of R$607.20, your taxable base will be reduced to R$2,428.80. This amount falls exactly within the new exemption bracket, resulting in zero withholding income tax.
Effectiveness and Income Tax Return
It is important to remember that this change takes effect in May 2025 and will impact your upcoming paychecks. If you are filing your income tax return now in 2025, referring to the 2024 tax year, nothing changes. The new table will only be used in the 2026 return, referring to the 2025 calendar year.
Attention: Provisional Measure
Finally, it is crucial to know that this is a provisional measure, meaning it is already in effect and being applied from May, but still needs approval from the National Congress to become permanent law.
Have any questions? Count on ORGATEC for further clarification.