New Income Tax Table: understand the changes 

The new income tax table has raised many questions among taxpayers.

This is because the main change is in the income brackets, which directly affects the discount rates.

So, what changes are there in the new rate? What happens to those who were in the first bracket of the old one? What precautions should be taken with the new rate?

These and other questions will be answered throughout the content below.

So, if you're looking for clarification on the subject, keep reading with us! 

What is the new income tax table?

If you were following the news during the election period, you certainly heard about the changes to income tax.

In general, the promises involved exemption from GO and changes in income brackets, which would remove the obligation to pay for some declarants.

And although the famous promise of total exemption for those earning up to R$5,000.00 did not come into effect, some changes did occur.

These changes are mainly in the alteration of income brackets, more specifically in the first bracket.

In the year 2022 the first income bracket that made payment mandatory and income tax return included those who earned amounts above R$ 1,903.98.

The main change occurred precisely in this range, so that it was expanded, so that a greater number of citizens could be exempt from paying income tax.

This increase was exactly R$ 208.00, so those who receive up to R$ 2,112.00 are exempt from income tax.

But, it is worth saying that the changes do not affect the other bands.

This is because the limit of the first band was not modified, remaining at 2,826.65.

Therefore, the rates for the other bands remain the same.

So that you understand better, let's see how it turned out new income tax table.

First Track: R$ 2,112.00 to R$ 2,826.65 - 7.5% - deduction of R$ 158.40.

Second Track: R$ 2,826.66 to R$ 3,751.05 - 15% - deduction of R$ 370.40.

Third Track: R$ 3751.06 to R$ 4,664.68 - 22.5% - deduction of R$ 651.73.

Fourth Track: above R$ 4,664.69 - 27.5% - deduction of R$ 884.96.

It is worth mentioning that this table will come into effect in 2024.

Wasn't the expansion of the new income tax table up to R$ 2,640.00?

By now you understand the main change in the new income tax table.

However, it is worth mentioning that this change is not definitive, as there are plans to increase this expansion of the first band for those who earn up to R$ 2,640.00.

In the table, the minimum exemption amount is currently R$ 2,112.00.

However, the Federal Revenue Service created a new deduction method, which allows reaching the announced value of R$2,640.00.

This mechanism basically consists of a simplified deduction, in the amount of R$ 528.00.

This means that those who opt for the simplified deduction will reduce their income tax discount by R$$ 528.00.

If we consider the value of 2,112.00 + 528 we will arrive at a total of R$ 2,640.00, so in practice the declarant will not have any IR discount.

Thus, the promise of exemption for this income bracket will actually become a reality.

It is worth mentioning that this deduction will only be used by those who truly benefit from it.

This is because, for those in income brackets 3 and 4, the deductions are higher, so it is not worth it.

But, in any case, for those who earn up to 2 minimum wages, this is certainly a very interesting measure, as it will bring income tax exemption!

Those who receive up to R$ 2,640.00 do not pay, but do they need to declare IR?

In the previous topic we saw that although the expansion of the first bracket of the new income tax table was up to R$ 2,112.00, in practice anyone who earns up to R$ 2,640.00 will not have to pay IR.

As we have seen, this occurs due to the simplified deduction, which will cover the discounted rate.

This way, in practice, the person will not have to deal with IR discounts, even though their income is in the first bracket of the table.

However, it is very common for doubts to arise regarding the declaration, after all, those who receive between R$ 2,112.00 and R$ 2,640.00 Do you need to declare income tax?

And, it is worth mentioning that the annual IR declaration is defined based on the table.

This means that yes, anyone who earns more than R$ 2,112.00 is obliged to complete the declaration.

It is important to highlight that in this case the declaration is not intended to collect IR discounts.

This is because, according to the calculated deductions, the system itself identifies that you owe absolutely nothing.

However, it is still important to fill it out, since technically your income bracket is in one of the mandatory brackets.

Once the new value for the first bracket is included in the table, you will no longer need to complete this declaration.

But, until this change occurs, file your declaration on time to avoid fines.

Can those in the 2nd, 3rd or 4th bracket use the simplified deduction?

Throughout this material we were able to better understand how the new income tax table works.

And, certainly, the main change observed is in the new values corresponding to the first income bracket.

Thus, it is clear that for those who were already in the 2nd, 3rd or 4th income bracket there was no change.

But, we also saw that the Federal Revenue Service is using a new mechanism for calculating deductions: the simplified deduction.

In this option, the declarant has the possibility of applying the deduction of R$ 528.00 to the tax due.

For those in the first bracket, this is very advantageous, as it would result in tax exemption.

But, what about those in other bands, is it allowed to use this mechanism? 

It is permitted, since all declarants may opt for this type of deduction.

However, it is important to consider whether it is worth using it.

This is because, for those in the 2nd bracket with a deduction of R$ 370.00, it may even be worth it, since the discount would be greater.

But, for those in the 3rd or 4th bracket, it is not worth it, since the deduction amounts in these brackets are higher.

Therefore, it is clear that yes, you can opt for the simplified deduction, but it is important to consider whether it is worth doing so based on your income bracket.

Finally, this was the information about the new income tax table.

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