Free tools / Brazilian stock tax calculator
Brazil: income tax on stock sales (IR sobre ações)
Work out the monthly DARF on share sales, including the swing trade exemption for small monthly volumes and the higher day trade rate.
Shares only, and an estimate. Funds, ETFs and fixed income follow different rules. Not tax advice.
Brazilian investors settle tax on share sales monthly, by generating and paying a DARF themselves. The rate depends on the type of operation: ordinary sales are taxed at one rate, day trades at a higher one, and the two are accounted for separately.
The most valuable rule for smaller investors is the monthly exemption on ordinary sales: if total sales in the month stay below the threshold, the gain is not taxed at all. Day trades never qualify. This calculator applies both rules and shows what you would owe.
The monthly exemption is per month, not per trade
The exemption tests the total value sold across the month, not the profit and not a single order. Selling just above the threshold makes the entire gain taxable, not only the excess, so spreading disposals across two months can be worth more than it looks.
The exemption applies to ordinary share sales. Day trades, ETFs and funds follow their own rules, and mixing them in the same month does not extend the exemption to them.
Losses, carry-forward and the small withholding
Losses offset gains within the same modality: ordinary losses against ordinary gains, day trade against day trade. Whatever remains carries forward to later months with no expiry, provided you keep the records and report them.
A very small withholding is deducted at source on sales, known informally as the dedo-duro because its purpose is to flag the transaction to the tax authority. It can be offset against the tax you calculate, and it is not the tax itself.
Frequently asked questions
What is the monthly exemption threshold?
Ordinary share sales are exempt when the total sold in the calendar month stays under the statutory limit, historically R$20,000. The field is editable here so the calculator survives a change in the rule.
When do I have to pay the DARF?
By the last working day of the month following the sale. Paying late attracts interest and a fine, and unlike wage tax nobody does it for you, which is the single most common mistake among new investors.
Are dividends taxed?
Dividends from Brazilian companies have historically been exempt in the hands of the shareholder, while juros sobre capital próprio are taxed at source. This treatment has been the subject of repeated reform proposals, so confirm the current rule before planning around it.
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