Countries › Brazil › Guide › 11. Real estate and land › Tax on rental income in Brazil: monthly carnê-leão for resident landlords, company withholding and 15 percent for non residents

Tax on rental income in Brazil: monthly carnê-leão for resident landlords, company withholding and 15 percent for non residents

Argentina. For full detail on Argentina, go to The Argentine Thread.

Last verified: 2026-10-27 · Status: Changing

Rent received by a resident individual is taxed at the progressive income tax rates, monthly: if the tenant is an individual the landlord pays through the carnê-leão by the last business day of the following month, and if the tenant is a company it withholds the tax. Property taxes, condominium charges, collection costs and rent on a sublet property paid by the landlord can be deducted, and since January 2026 a monthly reduction zeroes the tax on income up to R$5,000. Non resident owners pay 15 percent on net rent, withheld by their attorney in Brazil; high income residents also enter the new minimum tax from calendar year 2026.

USD figures use the Banco Central do Brasil PTAX selling rate of R$5.3346 per US dollar for 27 October 2026. Conversions are for orientation only.

Key facts

Withholding tax on net rent paid to a non resident owner	15 %Lei nº 9.959/2000 art. 1; RIR/2018 arts. 744 III and 763, as of 2026-10-27 · in force
Top monthly income tax rate on rent received by a resident individual	27.5 %Lei nº 15.191/2025 monthly table, as of 2026-10-27 · in force
Monthly taxable income up to which the 2026 reduction zeroes income tax	5000 BRLLei nº 9.250 art. 3-A (Lei nº 15.270/2025), as of 2026-01-01 · in force
Payment deadline for tax on rent received from individuals	Last business day of the month after receipt Lei nº 8.383/1991 art. 6 II, as of 2026-10-27 · in force
Annual income above which the individual minimum income tax applies	600000 BRLLei nº 9.250 art. 16-A (Lei nº 15.270/2025), as of 2026-01-01 · in force

The rule

1. Resident landlord, tenant is an individual. An individual who receives income from another individual or from abroad that was not taxed at source must pay income tax monthly (carnê-leão), and the tax must be paid by the last business day of the month after receipt. The monthly progressive table applies.
Cost to do it: Monthly payment by DARF; no cost beyond the tax and the monthly calculation.Lei nº 7.713 of 22 December 1988 art. 8; Lei nº 8.383 of 30 December 1991 art. 6 II, Lei nº 7.713 art. 8 caput; Lei nº 8.383 art. 6 II, 1991-12-30 official text · verified 2026-10-27

2. Resident landlord, tenant is a company. A company paying rent to an individual withholds income tax under the monthly progressive table (revenue code 3208). In both cases the landlord may deduct, if borne exclusively by the landlord, taxes and fees on the property, rent paid for a sublet property, collection costs and condominium charges. Tax withheld is credited in the annual return.
Cost to do it: Real estate agent and administration fees paid by the landlord count as collection costs only if they are costs of receiving the rent; keep receipts.Receita Federal, Manual do Imposto sobre a Renda Retido na Fonte (Mafon 2024), code 3208, citing RIR/2018 (Decreto nº 9.580 of 22 November 2018) arts. 41, 688 and 689 and Lei nº 9.250 art. 4, Mafon 2024 code 3208, observation 1, 2018-11-22 official text · verified 2026-10-27

3. 2026 monthly table and reduction. From January 2026 the monthly table is: up to R$2,428.80 exempt; R$2,428.81 to R$2,826.65 at 7.5 percent less R$182.16; R$2,826.66 to R$3,751.05 at 15 percent less R$394.16; R$3,751.06 to R$4,664.68 at 22.5 percent less R$675.49; above R$4,664.68 at 27.5 percent less R$908.73. On top of this, a monthly reduction applies: up to R$312.89 for taxable monthly income up to R$5,000 (so that the tax is zero), and R$978.62 minus 0.133145 times the income between R$5,000.01 and R$7,350, with no reduction above R$7,350.
Cost to do it: 27.5 percent marginal rate above R$4,664.68 a month of net rent and other monthly income.
Example: Rent R$10,000 less condominium R$1,500 and IPTU R$500 = R$8,000 taxable; tax 27.5 percent x R$8,000 less R$908.73 = R$1,291.27; no reduction because income exceeds R$7,350. / Rent of about US$1,875, monthly tax of about US$242.Lei nº 15.191 of 11 August 2025 (monthly table) and Lei nº 15.270 of 26 November 2025, adding art. 3-A to Lei nº 9.250, as published by the Receita Federal, Lei nº 9.250 art. 3-A (added by Lei nº 15.270 art. 2); Receita Federal 2026 tables, 2025-11-26 official text · verified 2026-10-27 · changed: From 1 January 2026, Lei nº 15.270 added the monthly reduction that zeroes tax up to R$5,000 and phases out at R$7,350.

4. Non resident owner. Rent from property in Brazil paid to a resident or domiciled abroad is taxed at source at 15 percent of net rent, after deducting, with proof, taxes, fees and charges on the property, rent paid for a sublet property, collection costs and condominium charges (revenue code 9478). The withholding is made when the amount is paid, remitted, credited or delivered to the non resident.
Cost to do it: 15 percent of net rent, with no exempt band.
Example: Same R$8,000 net rent: R$1,200 withheld each month. / About US$225 a month.Lei nº 9.959 of 27 January 2000 art. 1; RIR/2018 arts. 744 III and 763, as applied in Receita Federal Mafon 2024 code 9478, Mafon 2024 code 9478 (fato gerador and alíquota), 2000-01-27 official text · verified 2026-10-27

5. Minimum tax on high incomes. From calendar year 2026 (return filed in 2027), a resident individual whose total income in the year exceeds R$600,000 is subject to a minimum income tax. The base counts income taxed exclusively at source, exempt and zero rated income, so rent counts, but excludes capital gains other than exchange traded gains, savings account income and income from listed real estate credit instruments such as LCI, CRI and LIG.
Cost to do it: Additional tax, if any, is settled in the annual return.Lei nº 15.270 of 26 November 2025, adding art. 16-A to Lei nº 9.250 of 1995, Lei nº 9.250 art. 16-A caput and § 1 I to V, 2025-11-26 official text · verified 2026-10-27 · changed: New from calendar year 2026 under Lei nº 15.270, in force from 1 January 2026 (art. 8).

Monthly base	Rate	Deduction
Up to R$2,428.80	0%	0
R$2,428.81 to R$2,826.65	7.5%	R$182.16
R$2,826.66 to R$3,751.05	15%	R$394.16
R$3,751.06 to R$4,664.68	22.5%	R$675.49
Above R$4,664.68	27.5%	R$908.73

2026 monthly income tax table for individuals (Receita Federal, Lei nº 15.191/2025), before the Lei nº 15.270 reduction.

Worked example

Resident versus non resident on the same flat. Net rent R$8,000 a month (about US$1,500). A resident individual landlord with no other income pays about R$1,291 (about US$242) a month via carnê-leão; a non resident owner bears R$1,200 (about US$225) withheld by the attorney in Brazil. The non resident's flat 15 percent is lower than the resident's top marginal rate.
Argentine owner, high level. Under the Brazil and Argentina income tax convention as originally promulgated (Decreto nº 87.976 of 1982), income from immovable property may be taxed where the property sits, so Brazil's 15 percent applies; relief, if any, is a matter for Argentina. See The Argentine Thread guide.

Step by step

1. Decide who receives the rent: the individual owner, a company or a non resident through an attorney.
2. Each month compute net rent after deductible charges and keep receipts.
3. Resident with individual tenants: pay the carnê-leão by the last business day of the following month; with company tenants, check the withholding statement.
4. Non resident: appoint an attorney in Brazil to withhold 15 percent and file, then remit the net (see FX pages).
5. Above R$240,000 of annual rent from more than 3 properties, check the IBS and CBS real estate regime.

Common traps

Not deducting condominium and IPTU. Only charges borne exclusively by the landlord are deductible, and only with proof (Mafon code 3208).
Forgetting the minimum tax. Total income above R$600,000 a year now triggers it, and rent counts (Lei nº 9.250 art. 16-A).
Non resident with no attorney. Someone in Brazil must withhold and pay; without that, the tenant faces the compliance burden.

Sources

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