Chamber confirms IR exemption for up to 2 minimum wages this year

The Chamber of Deputies approved this Wednesday (25) the bill that changes the monthly Income Tax table to guarantee exemption to taxpayers with income of up to two minimum wages, currently equivalent to R$ 3,036. The change is retroactive to May 2025 and still needs to be approved by the Senate.

The change raises the tax-exempt threshold from R$2,259.20 to R$2,428.80. The adjustment follows the increase in the minimum wage, announced at the beginning of 2025, and, according to the federal government, will result in a tax break of R$3.29 billion this year. As the Federal Budget was only approved in April, the new amount will be in effect from May – although it is already June.

“The agreement reached was that this project would not have any changes to the provisional measure [1294/25, with the same content]. So that it would not harm the debate that we are going to have, which will be much broader when the project that exempts the R$5,000 with its possible compensations comes out,” said federal deputy Arthur Lira (PP-AL), who reported the proposal in the Chamber.

The proposal for income tax exemption for up to two minimum wages was unanimously approved. The exemption for those earning up to R$5,000, which is the government's main goal for this year, is still on hold.

According to Lira, the proposal approved this Wednesday (25) is part of a “combo” of government measures aimed at reformulating the Income Tax collection policy. Despite representing a specific advance, the measure does not correct the historical gap in the IR table.

The Income Tax table is progressive, that is, the higher the income, the higher the percentage of tax to be paid, reaching up to 27.5% for taxpayers with higher salaries.