Landlord income tax in Brazil: the carnê-leão in 2026

Who pays how

The Receita Federal’s 2026 Q&A (questions 207 and 266) sets three situations:

• Rent paid by an individual to a Brazilian-resident landlord: mandatory monthly payment (recolhimento mensal obrigatório, the carnê-leão), then adjustment in the annual return, where the tax paid counts as an advance.
• Rent paid by a company: the tenant withholds tax at source, and the landlord adjusts in the annual return.
• Rent received from abroad by a Brazilian resident (for example, from a property you own outside Brazil): also carnê-leão, with conversion of foreign currency, and a credit for tax paid abroad in the cases and limits the Receita describes.

The tax is due in the month the tenant pays the landlord’s agent, not the month the agent passes it on (question 210). Where a lease sets a price for more than one month or the rent is received in a lump sum, the whole amount counts in the month it is received. If several people co-own the property, each reports only their share (question 266).

What the landlord can subtract

Under Q&A 207, only the following may be subtracted from the rent in the base, and only when the landlord bore the cost: taxes, fees and registry charges on the property; rent paid on a sublet property; expenses of collecting the rent; and condominium fees, ordinary and extraordinary. Commissions paid by the landlord to digital platforms for short-stay rents are also deductible. The base includes late-payment interest and penalties, indemnities for early termination, and any improvements by the tenant that are not reimbursed. On top of that, the general monthly deductions apply (dependants, social security contributions, alimony ordered by a court and similar), or alternatively the simplified monthly discount of 25 percent of the top of the 0 percent band (question 267).

The monthly table in force

The table has applied since May 2025 (Lei 15.191/2025). Tax = base × rate − amount to deduct.

The 2026 reduction. Lei 15.270/2025, article 3-A of Lei 9.250, in force from 1 January 2026, gives a reduction “of the tax on the taxable income subject to monthly levy”:

• income up to R$ 5,000.00: a reduction of up to R$ 312.89, so the tax due is zero;
• from R$ 5,000.01 to R$ 7,350.00: reduction = R$ 978.62 − (0.133145 × monthly taxable income);
• above R$ 7,350.00: no reduction.

The reduction cannot exceed the tax calculated on the table. The Receita’s guide says that “from 1 January 2026” the reduction applies to taxpayers with taxable income up to R$ 7,350 “according to the table in Annex X of IN RFB 1.500”. Payotte did not read Annex X, so it does not know whether the Receita applies the reduction to the rent before or after deductions. Check it in the Receita’s official carnê-leão program.

Calculations, using only the official formulas (not advice): a monthly base of R$ 3,000 gives 3,000 × 15% − 394.16 = R$ 55.84 before any reduction, which falls to zero under the R$ 5,000 rule. A base of R$ 6,000 gives 6,000 × 27.5% − 908.73 = R$ 741.27, reduced by 978.62 − 0.133145 × 6,000 = R$ 179.75, to R$ 561.52, if the base for the reduction is the same figure.

The Receita’s Q&A also has an example for a 2025 rent (R$ 3,500 plus a 5 percent late charge, less a 10 percent management fee, leaving R$ 3,307.50) that yielded a payment of R$ 20.36 under the 2025 rules; it predates the 2026 reduction.

Owners living abroad

Question 208: rent on a Brazilian property received by a non-resident is taxed exclusively at source at 15 percent, unless a tax treaty says otherwise (25 percent if the owner lives in a jurisdiction on the Receita’s low-tax list). The attorney-in-fact in Brazil who receives the rent must pay the tax by DARF, revenue code 9478, in their own taxpayer number, on the date of the taxable event. See non-resident rental income tax and power of attorney from abroad. A non-resident cannot file the Brazilian annual return (question 175).

Other 2026 changes

From the 2026 income year, the “high income” minimum tax in Lei 15.270 (article 16-A) applies to people whose total income received in the year exceeds R$ 600,000, with rent included in its base (capital gains and gifts that are advances on an inheritance are deducted). The IBS/CBS consumption taxes can reach an individual who lets more than three properties and receives over R$ 240,000 a year; see tax reform. Rent must also be listed in the annual return; see declaring property in the income tax return.

Which professional to consult

An accountant registered with the regional accounting council can run the monthly calculation and the annual return; the Receita’s own carnê-leão program is free. A lawyer registered with the OAB can advise on treaties and withholding; see the property lawyer page.