Normative Instruction No. 2,174/2024: Changes to the Brazilian Individual Income Tax Brackets

Normative Instruction No. 2,174, published on February 14, 2024 by the Brazilian Federal Revenue Service (Receita Federal do Brasil – RFB), amended the progressive tax tables set out in RFB Normative Instruction No. 1,500, which establishes the general rules governing Individual Income Tax (IR). The new regulation amends Annexes II to IV and VII of RFB Normative Instruction No. 1,500, which address, respectively, the monthly withholding tables, employee profit-sharing, the composition of the cumulative table, and the annual progressive tables.

The changes apply to taxable events occurring from February 2024 onwards.

Among the main changes introduced by the regulation, we highlight the increase in the income tax exemption threshold. Since May 2023, taxpayers earning up to BRL 2,112.00 have been exempt. From February 2024 onwards, the tax will only apply to monthly income exceeding BRL 2,259.20. As a result of these changes, the monthly withholding table is as follows: