Law 15,270/2025 zeroes IRRF for anyone earning up to R$ 5,000 a month and reduces the tax up to R$ 7,350. How the reduction is calculated, worked examples and what employers need to adjust.
What the law did
Law 15,270, signed in November 2025 and in force since January 2026, did not touch the progressive IRRF table. It created a reduction applied after the tax is calculated: for taxable monthly income up to R$ 5,000 the reduction equals the tax itself, so the withholding becomes zero. For income between R$ 5,000.01 and R$ 7,350 the reduction is R$ 978.62 minus 0.133145 times the income, which makes it fall until it reaches zero at R$ 7,350.
The trigger is the gross taxable income of the month, before INSS, not the tax base. The 13th salary has its own assessment, with the same rule applied to its own amount. Vacation pay paid within the month adds to that month income for the purpose of the limit.
Three examples
A R$ 5,000.00 salary: 2026 INSS is R$ 501.51, the base R$ 4,498.49 and the table assesses R$ 336.67 of tax. The reduction equals that amount and the IRRF on the payslip is zero. Net: R$ 4,498.49.
A R$ 6,000.00 salary: INSS of R$ 641.51, base of R$ 5,358.49, tax under the table of R$ 564.85. Reduction: R$ 978.62 minus 0.133145 times 6,000, or R$ 179.75. Final IRRF: R$ 385.10.
A R$ 8,000.00 salary: INSS of R$ 921.51, base of R$ 7,078.49, tax of R$ 1,037.85. Since income exceeds R$ 7,350, there is no reduction and the full amount is withheld.
What changes for the company
The IRRF calculation gained a step, and systems that only apply the table now withhold tax they should not from anyone earning up to R$ 5,000. The excess belongs to the employee, so the error surfaces fast and forces a correction in the next payroll. DCTFWeb starts receiving lower IRRF amounts and eSocial has to reflect the reduction in the pay events.
Take-home pay for a large part of the workforce rises from the January payroll, at no cost to the company. It is worth telling employees before payday: the most common question was why the payslip changed without a raise.
For partners, pró-labore follows the same rule as salary. The law also created a minimum tax on high incomes and a 10% withholding on dividends above R$ 50 thousand a month paid to individuals, which changes the planning of anyone who drew a small pró-labore and large dividends.
How Avos handled it
The payroll engine applies the reduction automatically to the assessed tax, with the month taxable income as the trigger, and the public net salary calculator uses the same maths. To check a specific case, enter the gross salary and the dependents.