2026 tax table for dollar earners (PJ and PF)

This guide explains the general rules for dollar income in 2026, shows the updated IRPF table, and helps you understand why many people working for foreign companies choose to operate as a business (PJ). The progressive monthly individual income tax (IRPF) table in force in 2026 is below. Beyond the progressive table, a reduction mechanism now benefits certain income ranges, lowering or eliminating the tax due for some taxpayers. It is the same table the carnê-leão uses for income an individual receives directly.

In general terms, when an individual resident in Brazil receives recurring income from abroad, they must calculate and pay the applicable taxes under Receita Federal rules. In practice that means:

• The income becomes part of your taxable base.
• Taxation follows the IRPF rules.
• The effective burden tends to rise as income grows.
• Recurring dollar income can quickly reach the upper brackets of the table.

For people paid monthly by foreign clients or employers, the difference between PF and PJ usually becomes relevant fast.

Imagine a professional receiving US$5,000 a month at a dollar of R$5.50, which is roughly R$27,500 a month. At that income level, the comparison between PF and PJ usually becomes one of the most important financial factors of the operation. The goal is not only to reduce tax, but also to organize the activity correctly.

A large share of Brazilians who provide services to foreign companies operate through a business. The reasons usually include:

• A lower effective tax burden.
• Issuing invoices (notas fiscais).
• Financial organization.
• Separating personal and professional assets.
• More predictable taxation.

The exact structure depends on the activity, annual revenue and tax framework.

Many service exporters operate under Simples Nacional. Depending on the activity and framework, headline rates can start at around 6% of gross revenue. The effective rate depends on factors such as:

• CNAE (activity code).
• The applicable annex.
• Accumulated revenue.
• Payroll.
• The Fator R.

That is why two professionals with the same dollar revenue can face quite different tax burdens.

An important feature for those serving clients abroad is that exporting services has its own tax treatment. Depending on the operation:

• The service may count as an export.
• Certain taxes may not apply.
• Correct documentation becomes essential.

This is one reason professionals with foreign clients usually seek specialized accounting guidance. We go deeper in tax on exported services.

There is no universal answer. As a general rule:
PF often makes sense when:

• The income is occasional.
• The amounts are relatively low.
• Operational simplicity is the priority.

PJ often makes sense when:

• The income is recurring.
• Revenue is higher.
• There are multiple clients.
• The professional activity is continuous.

The higher the dollar revenue, the bigger the likely advantage of analyzing a PJ structure. More in individual vs business.

Many people focus only on taxation. But dollar earners should also weigh:

• The exchange rate.
• The FX spread.
• Remittance costs.
• IOF.
• The timing of conversion.

Over a year, these costs can add up to thousands of reais. See how much IOF you pay for that side of the operation.

Ruvo does not do tax planning and does not replace an accountant. Its role is the financial infrastructure for receiving dollars. With Ruvo you can:

• Receive dollars for free.
• Hold a USD balance.
• Receive via ACH, RTP or wire in the US.
• Convert only when you need to.
• Send funds to Brazil via Pix.
• Avoid unnecessary intermediary costs.

That lets you separate the tax decision from the FX decision, with 0% IOF.

For dollar earners, the main tax decision is usually not the exchange rate, but the structure used to receive the funds. Occasional income can work well as PF; recurring, higher income often justifies analyzing a PJ structure. Either way, understanding taxes, FX, IOF and international transfer costs is key to maximizing what actually stays with you. This page is informational, not tax advice; confirm your situation with an accountant.