Itemized or standard: which cuts your Brazilian income tax more?
This is about the ANNUAL Brazilian income-tax return — the one you file once a year, between March and May, choosing between the itemized (full) and standard (simplified) models. It's different from the monthly withholding already taken from your paycheck or your 13th salary, which JOBU's other calculators show. Add up dependents, health, education, PGBL and court-ordered alimony and see which model wins.
?
Everything you earned in the year that counts toward the income-tax base — salary, self-employed profit, rent received. It excludes exempt income and anything already taxed exclusively at source. This is the amount the standard return's 20% discount is applied to.
?
Anyone you claim as a dependent on your tax return — a child, a spouse with no income of their own, parents you support. Each dependent adds R$ 2,275.08 a year under the itemized return (12 times the monthly deduction).
?
Doctors, dentists, psychologists, physiotherapists, hospitals, lab exams and health insurance — yours and your dependents'. No cap: it's 100% deductible under the itemized return, as long as it's documented with a receipt or invoice.
?
Tuition, from basic education through graduate school — yours and your dependents'. Capped at R$ 3,561.50 per person, per year; spending above that doesn't count, even under the itemized return.
?
How many people generated that spending — count yourself, if you paid for your own studies, plus each dependent with tuition. The R$ 3,561.50 cap applies per person: with 2 people, the total cap doubles.
?
What you paid into a PGBL (or FAPI) private pension plan during the year. Only deductible up to 12% of your taxable income, and only if you also contribute to Social Security or a public pension plan.
?
Only alimony paid under a court decision, judicial agreement, or notarized deed counts — not an amount agreed informally between the parties. No cap: it's 100% deductible under the itemized return.
Annual return vs monthly withholding: why they're not the same thing
Every month, someone with a formal job or billing as self-employed already has income tax withheld — at source, on their salary, their 13th salary, or through the Carnê-Leão. That's different from the annual adjustment return, filed once a year (between March and May, over the previous year's income), where you settle up with Receita Federal and choose, between itemized and standard, which model to use. This calculator is about that annual choice — for the deduction already taken from your paycheck every month, use JOBU's other calculators.
How the itemized (full) return works
Under the itemized return, you add up each documented legal deduction: R$ 2,275.08 per dependent a year, health expenses with no cap, education up to R$ 3,561.50 per person, PGBL up to 12% of taxable income, and court-ordered alimony with no cap. The larger that sum, the lower the base your tax is calculated on — but it requires keeping every receipt.
How the standard (simplified) return works
Under the standard return, Receita Federal replaces every deduction with a single 20% discount on your taxable income, capped at R$ 17,640 a year starting in 2026 (Law No. 15,270/2025 — see the official source just below). No documentation needed: the discount is automatic.
Which one to choose
Compare the two totals in the result above. If your real deductions add up to more than the standard discount, the itemized return cuts your tax more — and it's worth keeping every receipt for the year. If you have few deductible expenses (few dependents, low health and education spending), the standard return usually wins, and saves you the work of gathering receipts too.
Official sources for this calculator
The numbers used here come straight from the law and the government's own tables — not our own estimate. Click through to check each one at the original source.
-
Medical expenses — no limit
Law No. 9,250/1995, art. 8, item II, letter "a": payments to doctors, dentists, psychologists, physiotherapists, hospitals and lab exams are 100% deductible under the full return, with no ceiling — as long as they're documented.
-
Education expenses — R$3,561.50 cap per person/year
Law No. 9,250/1995, art. 8, II, "b" (current value confirmed by Receita Federal): up to R$3,561.50 per year, per person (you or each dependent), for tuition from basic education through graduate school. Frozen since 2015 — spending above that doesn't count.
-
Private pension (PGBL) — up to 12% of taxable income
Law No. 9,532/1997, art. 11: PGBL (and FAPI) contributions are deductible up to 12% of your total taxable income on the return — and only count if you also contribute to Social Security or a public pension regime.
-
Court-ordered alimony — no limit
Law No. 9,250/1995, art. 4, item II: court-ordered or notarized alimony is 100% deductible, with no ceiling.
-
Annual simplified deduction — R$17,640 cap
Law No. 9,250/1995, art. 10, item X (value set by Law No. 15,270/2025): under the simplified return, the 20%-of-taxable-income discount got a new cap of R$17,640.00 starting in calendar year 2026 — it was R$16,754.34, frozen since 2015. This is the number to compare against your real itemized deductions (health + education + dependents + PGBL + alimony) to see which filing model saves more.
Frequently asked questions
Itemized or standard: which Brazilian tax return should I choose?
It depends on how much you have to deduct. If your real deductions — dependents, health, education, PGBL and court-ordered alimony — add up to more than the standard return's 20% discount (capped at R$ 17,640 a year), the itemized return cuts your income tax more. With few deductible expenses, the standard return usually wins.
Is this the same as the amount already withheld from my paycheck every month?
No. This is about the ANNUAL tax return, filed once a year (between March and May), where you choose between the itemized and standard models. The amount withheld from your salary or your 13th salary every month is a different, monthly calculation — that's what JOBU's other calculators show.
Is there a cap on deducting health expenses?
No. Payments to doctors, dentists, psychologists, hospitals and lab exams are 100% deductible under the itemized return, with no ceiling — as long as they're documented with a receipt or invoice.
Is there a limit on deducting education expenses?
Yes, R$ 3,561.50 per year, per person — you and each dependent who had school expenses. It's been frozen since 2015; spending above that for the same person can't be deducted, even under the itemized return.
Is it worth contributing to a PGBL pension just to lower my income tax?
Only up to 12% of your taxable income for the year, and only if you also contribute to Social Security or a public pension plan. Above that limit, the extra contribution can still make sense as an investment, but it stops generating an extra tax deduction.
This math, automatic, on top of Uber
The JOBU app is a floating bubble that sits on top of Uber, 99 or Waze. You tap, type the distance and the fare, and see the net profit instantly — without leaving the map or opening a browser. Want to be notified at launch?