On March 16, the Brazilian Federal Revenue Service disclosed the regulations for the 2026 Income Tax, which is based on the taxpayer's earnings in 2025. Among the key details shared are the deadlines for submitting tax returns, which will begin on March 23 and end on May 29. During this period, pre-filled tax returns will be available from the beginning of the legal deadline, giving taxpayers early access to their information for easier filing.

Taxpayers have the option to choose between two models for submitting their returns: the simplified or the complete declaration. The simplified declaration maintains the same rule as previous years, allowing individuals to receive a standard deduction of 20% on their taxable income. Importantly, this standard deduction acts as a replacement for all legal deductions available in the complete declaration, which include expenses related to education and health. The limit for this 20% deduction remains unchanged from last year, set at R$ 16,754.34.

For individuals who incurred substantial expenses in 2025 on dependents and healthcare, opting for the complete declaration may be more beneficial. This option allows for a more detailed breakdown of expenses, potentially leading to higher deductions for those who qualify. The new rules signal a continued emphasis on simplifying tax declaration processes while still providing options for more complex financial situations, thereby accommodating the varying needs of Brazilian taxpayers.