property sale tax exemption
Two situations fully or partially exempt the gain from a property sale from income tax: selling the only property you own for up to R$440,000, or reinvesting the proceeds into another residential property within 180 days. This page opens the calculator in exemption-simulation mode.
Below the R$440,000 limit and with no other recent property sale, the entire gain is exempt.
The reinvested proportion (50% of the sale value) sets the proportion of the gain that is exempt, the rest follows the normal progressive rates.
Because one of the two reduction factors, FR2, does not depend only on when you bought the property: it keeps growing every month between December 2005 (or the acquisition date, if later) and the month the sale actually happens. Two people who bought in the same month but sold in different years end up with different FR2 values. It is a detail most competing calculators ignore or treat as fixed.
No, each sale can use at most one of the two exemptions. The calculator lets you simulate either one separately to compare the result.
It applies to the property's sale value, not to the gain. A property sold for R$430,000 with a gain of only R$50,000 still needs to respect the R$440,000 limit on the total sale value, not on the gain.
Exemption not applied: the sale value is above the R$440,000 limit
| Bracket | Rate | Tax |
|---|---|---|
| from R$0.00 to R$5,000,000.00 | 15% | R$20,662.62 |
| Adjusted acquisition cost | R$280,000.00 |
| Net sale value | R$500,000.00 |
| Gross gain | R$220,000.00 |
| Article 18 reduction (Law 7,713/1988) | 0% |
| Gain after the article 18 reduction | R$220,000.00 |
| FR1 reduction factor | 1.0000 |
| FR2 reduction factor | 0.6261 |
| Taxable gain before exemption | R$137,750.82 |
| Exempt portion | R$0.00 |
| Taxable portion | R$137,750.82 |
Revenue code 4600 is the one most cited by specialized tax accounting sources for this kind of gain, but it was not confirmed in an official table from Brazil's federal tax authority in this review. Confirm it with an accountant before issuing the payment slip.
The entire calculation runs in your browser. The values you type in (sale, acquisition, dates, expenses) are never sent to any server.