US Citizens Working in Brazil
See what you actually take home after US and Brazil taxes — whether you're already working abroad or planning a move.
Here's what matters most for US citizens working in Brazil:
- •Brazil has progressive income tax rates up to 27.5%
- •FEIE can exclude up to ~$126,500 from US taxation if you meet the physical presence test
- •Cost of living varies significantly by city
- •US-Brazil tax treaty helps prevent double taxation
Who taxes you?
As a US citizen working in Brazil, you're subject to taxation by both countries. The US taxes citizens on worldwide income, but the Foreign Earned Income Exclusion (FEIE) can exclude up to approximately $126,500 of foreign earned income if you meet the 330-day physical presence test. Brazil taxes residents on Brazilian-sourced income with progressive rates up to 27.5%. Cost of living varies significantly by city, with major cities being more expensive. The US-Brazil tax treaty provides foreign tax credits to prevent double taxation.
Common pitfalls
- Not meeting the 330-day physical presence test disqualifies you from FEIE
- State tax obligations may persist if you maintain US state residency
- Currency fluctuations between USD and BRL can significantly impact your effective income
- Cost of living varies significantly by city
Frequently asked questions
Yes. US citizens must file US tax returns regardless of where they live. However, you may not owe US taxes if your income is below the FEIE threshold and you meet the physical presence test.
The FEIE allows you to exclude up to approximately $126,500 (indexed annually) of foreign earned income from US taxation if you meet either the bona fide residence test or the 330-day physical presence test.
Brazil has a progressive income tax system (IRPF) with rates from 0% to 27.5%. There's a personal allowance that reduces taxable income. You can claim foreign tax credits on your US return to offset taxes paid to Brazil.
Generally no. The US-Brazil tax treaty and foreign tax credits help prevent double taxation. You'll typically pay the higher of the two tax rates, not both.
Cost of living in Brazil varies significantly by city. Major cities are more expensive, while smaller cities offer lower costs. Currency fluctuations between USD and BRL can significantly impact your effective income and purchasing power.
Official resources
Primary sources:
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