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Spatial–temporal dynamics of aboveground biomass (AGB) and forest area affect the carbon cycle, climate and biodiversity in the Brazilian Amazon. Here we investigate interannual changes in AGB and forest area by analysing satellite-based annual AGB and forest area datasets. We found that the gross forest area loss was larger in 2019 than in 2015, possibly due to recent loosening of forest protection policies. However, the net AGB loss was three times smaller in 2019 than in 2015. During 2010–2019, the Brazilian Amazon had a cumulative gross loss of 4.45 Pg C against a gross gain of 3.78 Pg C, resulting in a net AGB loss of 0.67 Pg C. Forest degradation (73%) contributed three times more to the gross AGB loss than deforestation (27%), given that the areal extent of degradation exceeds that of deforestation. This indicates that forest degradation has become the largest process driving carbon loss and should become a higher policy priority.Carbon loss from forests occurs through deforestation or the degradation of existing forest. The loss of forest area in the Brazilian Amazon was higher in 2019 than following drought and an El Niño event in 2015, yet degradation drove three times more biomass loss than deforestation from 2010 to 2019.