Is There a US-Brazil Tax Treaty? What Exists Instead, and How Double Tax Is Relieved

The short answer

There is no income tax treaty between the United States and Brazil. Brazil is absent from the IRS list of US income tax treaties (page last reviewed January 3, 2026, read November 3, 2026). The list runs from Armenia to Venezuela and includes Canada, Chile and Mexico, so it does cover Brazil's region.

What exists instead:

Instrument	What it does	Source
Brazil's reciprocity credit (Ato Declaratório SRF 28/2000)	Lets Brazilian residents offset US income tax against Brazilian tax, within limits	Receita Federal; Ministry of Finance Q&A
US foreign tax credit and foreign earned income exclusion	US unilateral relief for US citizens abroad	IRS
US-Brazil Social Security agreement	Ends dual social security coverage; in force since October 1, 2018	Federal Register
Tax information exchange agreement	Lets the two tax authorities exchange information	US Treasury
FATCA intergovernmental agreement	Model 1, in force since June 26, 2015	US Treasury

This page explains what "no treaty" means for an American living in Brazil. It is general information as of November 3, 2026, and it computes no one's tax. For when Brazil starts taxing you at all, read Brazil Tax Residency for Americans; for the whole move in order, the hub is Moving to Brazil from the US.

What "no treaty" means in practice

Without an income tax treaty between them:

• Each country applies its own law in full. The US taxes its citizens on worldwide income wherever they live (IRS). Brazil taxes its residents on worldwide income, and residency follows the Receita's own tests, such as the 184-day count on a temporary visa (Receita Federal).
• Nothing decides between the two residencies. An American who meets Brazil's residency test is taxable as a resident in Brazil and, as a citizen, in the US at the same time.
• There are no treaty-reduced rates. The IRS notes that when a treaty entitles you to a reduced foreign rate, only the reduced tax counts for the credit; with no treaty, that particular limit has nothing to bite on, but the credit's other limits remain.

The relief comes from each country's domestic rules instead.

Brazil's side: the reciprocity credit

Brazil's tax authority issued Ato Declaratório SRF nº 28 of April 26, 2000, on "the offsetting of tax paid in the United States against tax due in Brazil" (official index record).

It is still applied. The Ministry of Finance and Receita Q&A on Lei 14.754/2023 (version of December 26, 2024, question 22) says tax paid abroad can be offset where there is a treaty "or reciprocity of treatment ... such as there is with the United States of America, the United Kingdom and Germany", and that the law restates the credit in its article 4.

Its limits come from the act's text, which we could read only in a secondary reproduction: it recognizes reciprocity, allows the offset within the limits of the Receita's rules on the credit, and excludes state and local taxes. Most defensible reading: only US federal income tax can be credited, and only up to the Brazilian tax due on that same income. Treat the exact limits as medium confidence until the official text can be read.

How it plays out depends on the income. A US salary or pension received by a Brazilian resident is taxed monthly through the carnê-leão; income from financial investments abroad is taxed once a year at 15% under Lei 14.754/2023, per the Q&A. The details are in Brazil Tax Residency for Americans.

The US side: the credit and the exclusion

The foreign tax credit

The IRS (page updated July 9, 2026) says that if you paid or accrued foreign taxes and are subject to US tax on the same income, you may take either a credit or an itemized deduction for them. Generally only income, war profits and excess profits taxes qualify. As a credit they reduce your US tax; as a deduction they reduce your taxable income. Individuals claim the credit on Form 1116.

The foreign earned income exclusion

The IRS (page updated June 12, 2026) lets a qualifying US citizen exclude foreign earned income up to an amount adjusted each year for inflation. To qualify, your tax home must be in a foreign country and you must be either a bona fide resident of a foreign country for an uninterrupted period that includes a whole tax year, or physically present in foreign countries for at least 330 full days in 12 consecutive months. Three limits that matter for people moving to Brazil:

• Pensions, annuities and Social Security benefits are not foreign earned income. The exclusion does not cover them.
• Self-employment tax is not reduced by the exclusion, only regular income tax.
• You cannot take the foreign tax credit on income you excluded. If you claim the credit on excluded income, the exclusion election may be treated as revoked.

Choosing between them

Which tool fits depends on the type of income, the Brazilian tax actually paid on it, and the limits above. That is a calculation for your own return, and the point to take to a tax professional who knows both systems.

Social security: the one agreement that does exist

The US-Brazil Social Security agreement has been in force since October 1, 2018. It:

• eliminates dual social security coverage for the same work;
• lets workers qualify for partial benefits by combining (totalizing) work credits from both countries;
• keeps a worker sent by an employer to the other country for 5 years or less covered only by the sending country.

The IRS says that to claim an exemption from US Social Security and Medicare taxes under a totalization agreement, the worker must obtain a Certificate of Coverage from the social security agency of their home country and give it to the US employer. The agreement covers social security taxes and benefits; it is not an income tax treaty.

Information exchange: the agreements that let the two authorities talk

• The US Treasury publishes the text of an agreement for the exchange of information relating to taxes between the two governments (text, dated 2007). It lets the tax authorities exchange information; it does not set tax rates or give credits.
• The Treasury lists a FATCA intergovernmental agreement with Brazil, Model 1, in force since June 26, 2015 (Treasury FATCA page). FATCA agreements govern how financial institutions report accounts held by US persons. Your own FBAR filing for foreign accounts above US$10,000 is separate and still applies: see Opening a Bank Account in Brazil as a Foreigner.

Myths checked against the sources

• "The US and Brazil have a tax treaty." Not an income tax treaty. The agreements that exist cover social security, information exchange and FATCA.
• "No treaty means you are always taxed twice." Both countries have unilateral relief: Brazil's reciprocity credit and the US foreign tax credit and exclusion.
• "The Social Security agreement covers income tax." It covers social security coverage and benefits only.
• "The exclusion covers my US pension." The IRS says pensions and Social Security benefits are not foreign earned income.

Where to go from here

• When Brazilian tax residency starts and what it triggers: Brazil Tax Residency for Americans.
• Retiring on a US pension: Brazil Retirement Visa.
• Reporting a Brazilian account: Opening a Bank Account in Brazil as a Foreigner.
• To lay out your residency start date, the carnê-leão calendar, the FBAR and CBE thresholds and a list of questions for your tax professional, see the US-Brazil Tax Basics for Movers: Workbook. It computes no one's tax.