Rental Income Tax (Carnê-Leão)

DARF on rental income (individual landlord)

If you're an individual (PF) in Brazil collecting rent from a tenant who is also an individual, the income tax on that rent is paid monthly through the Carnê-Leão system, and each payment generates a DARF under revenue code 0190. You take the rent received, subtract whatever deductions are allowed, and run the result through the 2024 monthly progressive IRPF table: exempt up to R$ 2,259.20; 7.5% from R$ 2,259.21 to R$ 2,826.65; 15% to R$ 3,751.05; 22.5% to R$ 4,664.68; and 27.5% above R$ 4,664.68, with the matching deductible amount taken off the top. The allowed deductions are IPTU paid by the landlord, brokerage commission proportional to the month, and condominium fees the landlord covers. Take a quick example: R$ 3,000 of rent with no deductions puts your base of R$ 3,000 in the 15% bracket, so the tax works out to roughly R$ 3,000 × 0.15 − R$ 354.80, about R$ 95.20. Payment is due on the last business day of the month following the one in which you received the rent. If the tenant is a legal entity (PJ) instead, the tax is withheld at source under code 3208 and Carnê-Leão doesn't come into play.

Applications

This comes up when you file the annual IRPF declaration, since the Carnê-Leão amounts get imported straight into the IRPF software. It also helps with tax planning on real-estate investments, where you want to know the net yield once IRPF is taken out, and when you're working inside the Carnê-Leão Web platform on Receita Federal's e-CAC portal.

FAQ

Tenant is PJ — do I file Carnê-Leão? No. The PJ withholds at source under code 3208 and hands you a year-end income statement. All you do is report it on the annual IRPF return.

Which expenses are deductible? Only the IPTU, brokerage commission and condo fees the landlord pays. Repairs, paint and improvements can't be written off against the rent.

What happens if I miss the deadline? You'll owe a late-payment penalty of 0.33% per day, capped at 20%, on top of SELIC interest. When you file late through Carnê-Leão Web, the system works those charges out for you.

Do I sum multiple rentals? Yes. Add up all the rental income for the month, along with any other Carnê-Leão income such as autonomous work, before you apply the table.