Freelancer Tax in Brazil: MEI, ISS, NFS-e & IRPF (2026)

The MEI (Microempreendedor Individual) is Brazil's simplified single-fee regime for the smallest businesses:

Eligibility:

• Annual revenue ≤ R$81,000 (≈$16K USD, may increase to R$130K under proposed reform)
• Single owner, max 1 employee (paid minimum wage or category minimum)
• Activity must be in the Tabela CNAE permitida para MEI (most service activities qualify)
• Cannot be a partner in other companies

How it works:

• Single DAS (Documento de Arrecadação do Simples Nacional) monthly fee — R$70-80 covers all taxes:

• Issue NFS-e for B2B clients (optional for B2C in many cities)
• Annual report (Declaração Anual MEI - DASN-SIMEI) by May 31
• NO ISS calculations, NO IRPF Carnê-Leão (income covered by DAS)

Register at portaldoempreendedor.gov.br — free, online, takes minutes.

If you exceed MEI thresholds or your activity isn't allowed under MEI, you become a regular prestador de serviços autônomo (self-employed service provider):

Tax obligations:

• INSS (social security): 11-20% of declared income, paid monthly
• ISS (municipal service tax): 2-5% per invoice, varies by city
• IRPF (federal income tax): 0-27.5% progressive
• Possible PIS/COFINS if structured as MEI-EI (not common for solo freelancers)

Monthly Carnê-Leão obligation: Income received from individuals (not businesses) must be self-declared and pre-paid monthly via Carnê-Leão Web on the Receita Federal portal. Income from registered businesses has tax withheld at source.

Comparison:

• MEI: R$70-80/month flat, covers everything ✅
• Autônomo: 5-15% effective tax depending on income + ISS + variable INSS

For most starting freelancers, MEI is the dramatic winner.

ISS (Imposto Sobre Serviços) is levied by each city's prefeitura (municipality):

• Rate: 2% to 5% — set by each city, by activity type
• Charged ON your invoice (you collect from the client, remit to the city)
• Major cities (São Paulo, Rio de Janeiro, Belo Horizonte) typically charge 5%
• Smaller cities sometimes 2-3% to attract business

Registration: Open a CCM (Cadastro de Contribuintes Mobiliários) with your city's prefeitura — free, usually online via the city's e-services portal.

MEI freelancers pay ISS as part of the flat DAS — no additional ISS calculation needed.

Autônomos calculate ISS per invoice and remit monthly via a guia (city-specific payment form).

Cross-municipality: services rendered for clients in other cities — ISS typically goes to YOUR city (where you're registered), not the client's. Exceptions for specific activities (construction, broadcasting).

Brazil uses NFS-e (Nota Fiscal de Serviços Eletrônica) for service invoicing — a municipal-level electronic invoice system (similar to Italy's SDI but city-based):

• Issued through your city's NFS-e portal
• Each city has its own system (São Paulo's NFS-e, Rio's NFS-e, etc.)
• Generated in XML, delivered via PDF or DANFSe (printed form)
• Includes your CCM, client info, service description, ISS amount

MEI: issuing NFS-e is optional for B2C (Receita does not require it), mandatory for B2B (clients need it to deduct expenses). Some cities offer simplified "MEI-only" NFS-e flows.

Autônomos: NFS-e is generally required for B2B; B2C may use RPA (Recibo de Pagamento a Autônomo) in some scenarios.

Acceptance of foreign currency: invoice in BRL, but you can reference USD/EUR amounts. Conversion at BACEN rate on the day of issue.

IRPF (Imposto de Renda Pessoa Física) is Brazil's federal personal income tax:

Monthly brackets (2026, BRL):

• Up to R$2,259.20 — 0% (isento)
• R$2,259.21 to R$2,826.65 — 7.5%
• R$2,826.66 to R$3,751.05 — 15%
• R$3,751.06 to R$4,664.68 — 22.5%
• Above R$4,664.68 — 27.5%

Deductions reduce taxable income:

• Per dependent: R$189.59/month
• INSS contributions: fully deductible
• Education expenses (annual return): capped at R$3,561.50/dependent/year
• Health expenses: fully deductible (no cap)
• Private pension (PGBL): up to 12% of taxable income

Annual return (Declaração de Ajuste Anual):

• Filed via Programa IRPF (Receita Federal's software) or online
• Due last business day of April
• Reconciles monthly Carnê-Leão payments with actual annual tax owed
• Refunds paid in batches starting May

If you're an autônomo (not MEI) receiving income from individuals (Pessoa Física), you must self-calculate and pre-pay IRPF monthly via Carnê-Leão Web on the Receita Federal portal:

• Calculate IRPF on income from PF (Pessoa Física) clients
• Pay via DARF code 0190
• Due by the last business day of the following month
• Income from PJ (Pessoa Jurídica) clients usually has tax withheld at source (IRRF) — no Carnê-Leão needed

Use the Carnê-Leão Web tool on the Portal e-CAC — it calculates the brackets automatically.

MEI does NOT need Carnê-Leão — income is covered by the DAS flat fee.

MEI:

• DAS payment — monthly by 20th
• DASN-SIMEI (annual MEI declaration) — by May 31 of the following year
• Personal Declaração de Ajuste Anual (IRPF) if you also have other income exceeding the limits

Autônomos:

• Carnê-Leão DARF payment — last business day of following month (for income from individuals)
• INSS GPS payment — monthly
• ISS municipal payment — monthly per city schedule
• Declaração de Ajuste Anual (IRPF) — last business day of April

Late Carnê-Leão = 0.33% per day fine + interest (Selic rate). MEI late DAS = no fine if paid within the year, but loses MEI status if defaulted long-term.