Gross to net salary calculation

Hello FlorAlvarez,

Your income tax deducted at the source will be based on your annual income (in Brazilian Reais - BRL) as follows:

Income (BRL)    %
1-18,799    -
18,799-28,174    7.5
28,174-37,566    15
37,566-46,939    22.5
over 46,939    27.5

You will pay your portion of contributions to INSS (pension) based on your monthly salary at the following rates:

   R$ / mês                         %
até 1.247,70                      8,00
de 1.247,71 até 2.079,50    9,00
de 2.079,51 até 4.159,00    11,00

Hope this helps you do your calculations.

Cheers,
William James Woodward - Brazil Animator, Expat-blog Team

It does William thanks a lot!
I guess that I have to add up the two type of taxes right?
What if the monthly salary would be higher than 4.159?

Hi FlorAlvarez,

Eleven percent for INSS is the MAXIMUM you pay on your entire salary.

Cheers,
William James Woodward - Brazil Animator, Expat-blog Team

Greetings,

Could you please help with an example calculation of the income tax and INSS?
Let's assume the following:
Annual gross salary of $100000 USD
Currency exchange rate is 1 USD = 2.58 BRL

Annual gross salary in BRL is 258000.
258000 > 46939 so income tax is 27.5%


Monthly income is 21500 BRL.
21500 > 4159 so INSS tax is 11%

Total tax on the gross annual salary is 27.5+11=38.5%

258000 * (38.5/100) = 99330

This leaves the Disposable Personal Income to:
258000 - 99330 = 158700

Is my calculation correct or I'm not applying the INSS properly to the monthly income?
Thank you!

Looks correct to me

Thank you, James!
I also found a website (calcule.net/calculos.trabalhistas/calculo.sal.liq.php) that is helping to calculate the monthly "liquid salary" but the calculations there differ from my assumptions.
For an example, I tried to calculate the same monthly gross salary after currency conversion of 21000 BRL and calculate the net salary for the month of December 2014.
Here are the results.

Mês.......................................: Dezembro de 2014
Salário base...........................: R$ 21.000,00

Salário líquido..................: R$ 15.665,45

Detail breakdown of the calculation:

Memórida de cálculo:

INSS.........................................: 482,93
Dependentes...........(Qtd)..0.....: R$ 0,00 (O valor da dedução mensal é R$ 171,97 por dependente)
Imposto de renda (IRPF).............: R$ 4.851,62

Base para cálculo.(IRPF)..............: R$ 20.517,07


Faixa da Base de Cálculo     Alíquota     Valor do Imposto (IRPF)
1ª faixa 1.499,15     Isento     0,00
2ª faixa 853,13     7,5%     63,98
3ª faixa 854,68     15%     128,20
4ª faixa 853,00     22,5%     191,93
5ª faixa 16.245,48     27,5%     4.467,51
Total 20.517,07           4.851,62


Could you please help in deciphering the above calculations? I can't seem to understand the logic.
Thank you in advance!

From what I can understand from your result on the calculator it appears that they don't count your INSS contribution as part of your gross income, so they take that right off the top and then you are taxed on the remaining amount.

It appears that the percentages and salary values  shown in reply #3 above are actually "income bands" you don't get taxed on your overall income at the rate of the highest amount, bur it looks like you get taxed for only the amount which falls within each "band" at the rate shown, if you earn more, then only the income in the next "band" at that rate, and so on.