MEI — Individual Microentrepreneur (Microempreendedor Individual)
The MEI — individual microentrepreneur (MEI) — is a simplified tax regime for an individual carrying on an economic activity as a sole entrepreneur, with annual revenue of up to BRL 81,000 (in 2026). Taxes are paid through a single slip (DAS-MEI) at a fixed monthly amount, and the regime is exempt from IRPJ, CSLL, PIS, COFINS and IPI.
Limits and features
- Revenue cap: BRL 81,000/year (an average of BRL 6,750/month). There is a legislative proposal to raise it to BRL 130,000 or BRL 144,000.
- No employees, or a single employee paid up to the minimum wage plus the category floor.
- Permitted activities: an official CNAE list — it excludes regulated professions (lawyer, doctor, accountant, engineer), which require a specific company type.
- Payment via DAS-MEI: a fixed monthly amount comprising INSS (5% of the minimum wage) + BRL 1 (ICMS, the state goods tax, if engaged in trade) + BRL 5 (ISS, the municipal service tax, if engaged in services).
- Obligations: the MEI Annual Simples Nacional Return (DASN-SIMEI), due by May 31 of the following year.
When the MEI must exit the regime
The MEI is automatically removed from the regime when it exceeds 20% over the cap (BRL 97,200 in 2026) — it immediately moves to Simples Nacional as a microenterprise (ME). Earning above the cap without reporting it can trigger:
- A retroactive recalculation of all taxes under the Simples regime (with a penalty);
- Loss of the MEI benefits for the entire calendar year;
- A charge of interest and a penalty on the assessed difference.
A planned migration to a microenterprise (ME) or small business (EPP) is a central topic in the tax planning of small businesses — see also Simples Nacional.
Frequently asked questions about the MEI
How much does the MEI pay in taxes per month?
The DAS-MEI in 2026 runs around BRL 70-77/month (5% of the BRL 1,412 minimum wage + BRL 1 ICMS or BRL 5 ISS). The amount includes the social security contribution that secures an old-age pension and other INSS benefits — it does not include a length-of-contribution pension, unless an optional top-up is paid.
What happens if the MEI earns more than BRL 81,000 in a year?
If it exceeds the cap by up to 20% (up to BRL 97,200), the MEI remains in the regime for the current year but is removed for the following year (and must pay Simples Nacional as an ME). If it exceeds 20%, it is removed retroactively to January — all of the year's taxes are recalculated under Simples Nacional, with a penalty and interest. Formally electing to exit before involuntary removal avoids the penalty.
Does the MEI issue invoices?
Yes. The MEI issues an Electronic Service Invoice (NFS-e) to other legal entities (mandatory) and may issue one to individuals (optional). For sales of goods, it issues an NFC-e or NF-e as determined by the state. Issuance is free of charge through the municipal/state portals.
Can the MEI hire an employee?
Yes, but only a single employee, paid up to the category floor or the minimum wage, whichever is higher. More than one employee already triggers removal from the regime. The MEI pays 3% of the salary toward Social Security (FGTS + employer INSS) — a simplified regime.