IT Strategy
IOF tax: how much a business loan really costs in Brazil today
Simplified-regime businesses pay up to 1.38% yearly IOF tax on loans up to R$30,000; general-regime businesses pay up to 3.38%. That tax, plus the bank's spread, changes the math before any rate negotiation.
March 09, 2026|5 min read
The tax that applies before the bank's interest rate
Every business loan in Brazil carries IOF (financial transactions tax) — and today's rule treats Simples Nacional (simplified-regime) businesses differently from general-regime ones. Simplified-regime businesses (microenterprises, small businesses, MEIs) pay up to 1.38% yearly IOF on credit operations up to R$30,000 (a 0.00274% daily rate plus a 0.38% add-on). General-regime businesses pay up to 3.38% yearly under the same logic (0.0082% daily plus the same 0.38% add-on).
This tax applies before any interest rate negotiation with the bank — it's a fixed cost set by law, not a line item you can haggle over.
Why this changes how you compare credit lines
When you compare two loan offers, the built-in IOF is part of the CET (Total Effective Cost) — the number that actually matters, not the advertised interest rate alone. Two lines with similar nominal interest can have very different total costs if IOF is applied differently, or if the loan term changes the total amount paid.
Simplified-regime businesses have a clear advantage here: the lower IOF rate reduces total cost compared to the general regime, for the same loan amount range.
What to check before closing on a loan
Three things help you avoid comparing the wrong offer: always ask for the full CET (Total Effective Cost), not just the isolated monthly or annual interest rate — that's where IOF is already added in. Then confirm which tax regime your business falls under, to know which IOF rate applies to your business. And simulate the total cost across different loan terms, since IOF accrues daily — a longer loan tends to accumulate proportionally more IOF.
Where Diglion comes in
Diglion helps small businesses compare loan offers by real total cost, including IOF, avoiding decisions based only on the advertised interest rate.
Sources consulted
- Ailos, IOF: entenda as novas regras e como elas impactam o crédito PJ, retrieved 2026-03-09.
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