How do I report rental income on my tax return?
In short: Rent received from an individual is reported monthly via carnê-leão (the Federal Revenue Service’s self-assessment system) and consolidated in the annual tax return. Rent received through an agency (a company) follows source-withholding rules. In 2026, total monthly income up to R$ 5,000 is exempt under Law 15,270/2025.
Two scenarios: who pays the rent determines the path
Scenario 1 — Tenant pays the landlord directly (individual to individual)
The landlord is responsible for self-assessing income tax monthly via carnê-leão:
- Access e-CAC (the Federal Revenue Service’s portal) and open “Carnê-Leão Web”
- Enter the rent received in the month
- Apply allowed deductions (property tax, regular condo fee, agency fee, insurance)
- Calculate the tax using the progressive table
- Pay the DARF (code 0190) by the last business day of the month following receipt
Scenario 2 — Rent received through an agency (a company forwards it to the individual landlord)
The agency may withhold income tax at the source before the payout. Check with Regente whether withholding applies — if it does, you report the gross amount as company-sourced income with tax already withheld. If not, you report and pay via carnê-leão or settle it in the annual return.
2026 monthly progressive tax table
- Up to R$ 2,428.80 → exempt
- R$ 2,428.81 to R$ 2,826.65 → 7.5% (deduction: R$ 182.16)
- R$ 2,826.66 to R$ 3,751.05 → 15% (deduction: R$ 394.16)
- R$ 3,751.06 to R$ 4,664.68 → 22.5% (deduction: R$ 675.49)
- Above R$ 4,664.68 → 27.5% (deduction: R$ 908.73)
New in 2026 (Law 15,270/2025): total monthly income up to R$ 5,000 is exempt. Between R$ 5,000.01 and R$ 7,350 there’s a progressive discount. This threshold considers all income sources combined.
On the annual tax return (DIRPF)
- Taxable income received from an individual: report the annual total rent + the tax already paid via carnê-leão
- Taxable income received from a company: report the annual total + tax withheld at the source by the agency
- Assets: report the property at its acquisition value (not market value)
Deductions that reduce the tax
- Property tax paid by the landlord
- Regular condo fee (if paid by the landlord)
- Management/brokerage fee paid to the agency
- Mandatory property insurance
Calculation example
A landlord in Itacorubi receives R$ 2,800/month in rent from an individual tenant. They pay R$ 350/month in property tax plus Regente’s fee of R$ 280 (10%).
- Gross rent: R$ 2,800
- (-) Property tax: R$ 350
- (-) Regente fee: R$ 280
- Taxable base: R$ 2,170 → exempt (below R$ 2,428.80)
No tax owed via carnê-leão in this case.
Related questions
- What is carnê-leão and when does a landlord need to pay it?
- Is rental income up to R$ 5,000 exempt from income tax in 2026?
- What expenses can a landlord deduct from rental income tax?
- When and how do I receive my rent payout?
Have questions about income tax and rental income? Consult an accountant — Regente can advise on the documents available for your tax return. Contact us.