Is rental income up to R$5,000 exempt from income tax in 2026?
In short: Since January 1, 2026, total monthly income up to R$5,000 is exempt from income tax (IR) under Law 15,270/2025. But note: the cap applies to the sum of all income sources — salary, rent, retirement — not just rental income alone. If total monthly income exceeds R$5,000, tax is calculated on the excess.
What changed with Law 15,270/2025
The law, enacted in November 2025, expanded the personal income tax (IRPF) exemption bracket and created a progressive discount mechanism:
- Up to R$5,000/month (total from all sources): exempt — no income tax due
- R$5,000.01 to R$7,350/month: progressive discount — you pay less, but not zero
- Above R$7,350/month: full progressive tax table (7.5% to 27.5%)
How to calculate whether you’re exempt
Add up all your monthly income sources:
- Salary or self-employment income (pró-labore)
- Rental income received
- Retirement or pension income
- Other taxable income
Practical examples
- Retiree, no salary, rent of R$2,800/month: total = R$2,800 → exempt
- Civil servant with salary of R$3,500 + rent of R$1,200: total = R$4,700 → exempt
- Professional with income of R$5,500 + rent of R$1,800: total = R$7,300 → progressive discount
- Business owner with income of R$8,000 + rent of R$2,000: total = R$10,000 → full progressive table
Even if exempt, do I still need to file a return?
The requirement to file an annual income tax return follows separate rules (annual gross income above a certain threshold, assets above R$800,000, etc.). Even if the rental income itself is tax-exempt, it must still be reported on your return if you’re required to file — either as exempt income or income subject to exclusive taxation, depending on the case.
Do deductions still apply?
Yes — even with the new exemption threshold, deductions (property tax/IPTU, condo fees, real estate agency fee) still apply when calculating the taxable base. They reduce taxable income, which can be decisive for anyone in the R$5,000–R$7,350 bracket (progressive discount).
Related questions
- How do I report rental income on my tax return?
- What is carnê-leão (monthly tax withholding) and when must the landlord pay it?
- What expenses can a landlord deduct from rental income tax?
- When and how do I receive my rent payout?
Have a question about your specific tax situation? Consult an accountant. Regente provides statements to support your tax filing.