Short answer: R$479 per month for those earning more than R$5,000. Because the current table is the one below. Then just take what the Income Tax eats today:
| Wage | IRPF rate | Tax |
| Up to R$2,259.20 | I was already exempt | R$ 0,00 |
| From R$2,259.20 to R$2,826.65 | 7,5% | + R$ 42,55 |
| From R$2,826.66 to R$3,751.05 | 15% | + R$ 138,65 |
| From R$3,751.06 to R$4,664.68 | 22,5% | + R$ 205,57 |
| From R$ 4,664.68 to R$ 5,000.00 | 27,5% | + R$ 92,21 |
Total exemption: R$478.98
It went from R$5,000, the rate is 27.5% (more on this later). Those who earn R$20,000, for example, start paying R$4,125 in income tax, compared to R$4,604 before – precisely the difference of R$479.
Now for the long answer. Today, there is an automatic exemption of R$564.80, designed to free those earning up to two minimum wages (R$2,824) from income tax – see better in the Revenue simulator.
In other words: for your tax base to stay within the ceiling of R$5,000, according to today’s rule, you can earn up to R$5,564.80.
But it would not be logical to maintain this automatic exemption. Otherwise, this would be equivalent to freeing anyone earning up to R$5,564.80 from income tax – and that was not what Haddad said in his speech this Wednesday (27).
So it’s worth considering the table above, in principle. Unless you take out more than R$50,000 – because then you will pay more IR (the Minister failed to say how much, and whether the measure will include PJs).
The other side of the coin
In a recent interview with EstadãoLuiz Sthulberger, manager of the Green Fund, estimated the impact on the public coffers of this IR exemption at between R$70 billion and R$80 billion. Bad news for a country whose public debt is 78.5% of GDP. 10 years ago, it was 56%. For 2029, the IMF predicts 93% – probably without the International Monetary Fund having included this income tax exemption in the account.
READ MORE: ‘Tax for millionaires’ would affect 15 thousand small businesses in Simples
The measure, which actually reduces income inequality, also has another negative point in the “macro view”: it is inflationary. Any increase in wages that is not accompanied by an equivalent gain in the production of goods and services generates an increase in prices – there is more money in circulation than there are things to buy with that money.
There is no such thing as a free raise.
