Brazil’s federal government collected R$ 266.8 billion in taxes and other federal revenue in May 2026, the highest May figure since the Federal Revenue Service’s historical series began in 1995, according to figures reported by Agência Brasil and regional outlets.
The result was 10.69% higher in real terms than in May 2025, after inflation. From January through May, federal revenue reached R$ 1.32 trillion, also a record for the period, with real growth of 6.42% from the first five months of last year.
Oil Boosts Revenue
The strongest boost came from oil and natural gas. Revenue linked to oil and gas extraction totaled R$ 50.6 billion in the first five months of 2026, compared with R$ 13.2 billion in the same period of 2025.
Brazil’s Federal Revenue Service attributed part of the increase to higher international oil prices, which the reports linked to tensions in the Middle East. The higher commodity price lifted receipts from royalties, exploration-related payments and taxes on exports.
In May alone, the export tax on oil raised R$ 1.05 billion. Non-administered revenues, a category that includes royalties and financial compensation for the exploitation of natural resources, increased by R$ 4.1 billion.
Corporate Taxes and IOF
Other taxes also contributed to the record. The Revenue Service cited higher collections from payroll-related social security contributions, PIS and Cofins social contributions, the Tax on Financial Operations (IOF), Corporate Income Tax (IRPJ) and the Social Contribution on Net Profit (CSLL).
IRPJ and CSLL together brought in R$ 36.7 billion in May, a real increase of 33.11% from the same month in 2025. According to the tax authority, about R$ 7 billion of that amount came from collections considered atypical and linked to legislative changes.
The IOF, a tax charged on financial transactions such as credit, foreign exchange and insurance operations, also rose sharply. It collected R$ 8.1 billion in May, up 31.11% in real terms from May 2025. For the year to date, IOF revenue reached R$ 41.8 billion, a real increase of 38.77% from the first five months of last year.
Tax Changes and Fiscal Target
The revenue figures also reflect tax measures adopted in recent years. The reports cite changes affecting exclusive investment funds, offshore investment structures, state tax incentives, fuels, international parcels, payroll taxation, online betting and interest on equity, a corporate payout mechanism used in Brazil.
Even so, the Federal Revenue Service said the main driver was the expansion of economic activity and the performance of productive sectors. That distinction matters because higher recurring revenue from activity is fiscally different from one-off gains produced by legal changes or unusual payments.
The increase comes as the federal government works to meet its 2026 fiscal target. The target is a primary surplus of about R$ 34.3 billion, equivalent to 0.25% of gross domestic product, before interest payments on public debt.
Under Brazil’s fiscal framework, the government can still be considered compliant if the result falls within a tolerance band ranging from zero to a surplus of about R$ 68.6 billion. The law also allows some expenses to be excluded from the official calculation, including payments of precatórios, which are court-ordered government debts.