tax on selling a property
The tax on the capital gain from selling a property is not a flat rate on the sale price, it is a multi-step calculation on the difference between what you sold it for and what you paid, with reductions that depend on when the property was bought and sold. This page opens the calculator ready to simulate your own numbers.
No article 18 reduction (bought after 1988), with FR1 and FR2 still shrinking the gain based on the years between the purchase and the sale.
Very old properties stack the article 18 reduction with FR1 and FR2, shrinking the taxable base considerably even without any exemption.
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.
15% is only the first bracket, applied to the portion of the taxable gain up to R$5 million. Above that, the following brackets (17.5%, 20% and 22.5%) apply progressively to the excess, the same way the personal income tax table works. Most residential property sales fall entirely within the 15% bracket, but the calculator applies the progressive brackets correctly for any amount.
Yes, two exemptions cover the most common cases: selling a single property worth up to R$440,000 with no other sale in the last 5 years, and reinvesting the sale proceeds into another residential property within 180 days (with a proportional exemption if the reinvestment is partial). The calculator simulates both.
| 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.