The tax is based on a calculation that involves the vehicle's market value and the state rate, in addition to having different forms of payment
The year 2026 is very close and with it come the collections of the Motor Vehicle Property Tax (IPVA). Despite being one of the main annual expenses of Brazilians who own a car, many people do not understand how the tax works and do not even know how to find out the value of the IPVA.
This tax can vary greatly depending on several factors, such as location, rates, exemptions , and the market value of the vehicle. In addition, at the time of payment, many questions arise about the best form of payment, how to get exemption, among many others. In this article you can check out the answers to all these questions.
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The Motor Vehicle Property Tax is a tax due annually by owners of passenger cars or utility vehicles, such as cars, trucks, motorcycles, buses, trucks, aircraft, and boats.
It was designed to replace the Single Road Tax (TRU), a tax created during the military dictatorship with the objective of helping to finance the expansion and maintenance of the road modal. The first state to implement the tax was São Paulo in 1986 and then the other states followed suit.
In this way, each federation unit began to stipulate the rates for each vehicle, payment terms and exemption, as well as discounts and different payment modalities. The tax is divided between 20% for the Fund for the Maintenance and Development of Basic Education (Fundeb) and the remaining 80% is divided between the State and the municipality of vehicle registration, which can allocate the money to other areas of public administration.
The tax calculation basis takes into account two factors: the market value of the vehicle and the state tax rate.
In short, the market value represents an assessment made by the government on the price of certain goods, including vehicles. This estimate is based on market studies and, in most cases, the quotation of the Economic Research Institute Foundation (Fipe) is taken into account.
Thus, in the case of a used car, for example, the average price practiced in the market at the end of the year prior to the charge is considered, which can be found in the Fipe Table. The zero car, in turn, has the value of the invoice as a reference.
Now, when it comes to an old car imported directly by the consumer, the price that appears in the customs clearance document is applied as the basis for calculation, plus other taxes and charges, even if not collected by the importer. The state rate, on the other hand, is a rate that is defined by each state and usually varies according to the type of vehicle.
Now that you know what each of these factors represents, you can learn the formula to know the value of the IPVA:
Example: consider the tax of someone who lives in São Paulo, where the current rate is 4% for passenger cars. Suppose that this driver has just bought a vehicle whose market value is R$ 50,000.00. To calculate the IPVA, he must do the following calculation:
Thus, the amount of the Motor Vehicle Property Tax for this owner is R$ 2,000.
Some states publish tables with the market values of vehicles and the respective values of the IPVAs, close to the payment dates for taxpayers’ knowledge. But, knowing this amount in advance is very useful, especially for those who are in doubt about the best form of payment or want to plan end/beginning of the year expenses.
The vast majority of Brazilian states already have the entire process of collecting and paying the IPVA digitized. You can pay taxes and ask questions through the websites of the State Treasury Secretariats (Sefaz) or the State Traffic Departments (Detrans). Payment methods vary between boletos, credit card or even Pix in some federative units.
It is important to be aware, since, in general, the responsible agencies do not send emails, messages or make calls with IPVA charges. If you receive something like this, do not pay and always check it on official channels, as it could be a scam.
When it comes to paying the tax, many questions arise, one of the main ones is: is it more worthwhile to pay the IPVA in installments or in cash?
Payment in installments is ideal for planning expenses, since the end of one year and the beginning of another are times of many expenses. Dividing it into several quotas ends up being the safest choice, especially when there is no discount for cash payment or when this reduction is small. The states offer different conditions, ranging from 3 to 10 installments.
In general, the choice depends on the financial situation of each taxpayer, but for those who already have money saved, paying the IPVA in cash is a good choice. This option is only valid when the expense does not compromise your emergency reserve.
This is because most states grant a discount for cash payment. These reductions in the final value can range from 2% to almost 30%, if the place has programs that provide a cumulative reduction in the tax, as is the case of Rio Grande do Sul with the Good Driver and the Good Citizen.
The rules for IPVA exemption vary by state, but generally include:
The time of manufacture of the cars can also be a factor in exempting the driver from paying the tax. This benefit is offered to those who have vehicles that are at least 10 to 20 years old, depending on the state.
In addition, in some states such as São Paulo de Minas Gerais, there is still an exemption from IPVA for electrified vehicles.
