Some grant full benefits, while others impose limitations, such as the type of energy source, place of manufacture, value, and age of the vehicle
The annual payment of the Motor Vehicle Property Tax (IPVA) is the responsibility of each state and the Federal District, which establish dates, rates, payment conditions and other factors. In the case of IPVA 2026, 16 federations and the Federal District decided to offer tax exemption for electric and hybrid cars.
Owners of electrified vehicles may be happy, but before actually celebrating the removal of this expense, it is necessary to understand the particular conditions that each state proposes and the parameters that need to be met.
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Some of these requirements concern the type of energy source, place of manufacture and technical specifications, in addition to the value and age of the vehicle. There are even some ‘gotchas’ that include price caps or that, in the end, benefit only one automaker.
Some states have full release, while others partially or only discounts. There are also those that do not offer any type of benefit.
In the State of Acre, electric and hybrid vehicles are totally exempt from the tax, unlike other combustion passenger cars, which pay about 2% of their market value.
The state of Alagoas is exempt from IPVA for both hybrid and electric vehicles. However, this only applies to the first year of tenure, in which there is no charge.
From the second year onwards, 100% electric vehicles pay 1% of the sale value based on the Fipe table. Meanwhile, hybrid vehicles have a rate of 0.75% in the second year, which doubles to 1.5% from the third year onwards.
Electric and hybrid cars are fully exempt from IPVA until December 31, 2026. Meanwhile, the rule for passenger cars with a combustion engine is 3%
In the state, there is no complete IPVA exemption and electrified models only get a discount compared to combustion vehicles. While these conventional cars pay a rate of 4%, electric and hybrid cars pay 1.5% of the market value.
In Bahia, electric cars are now totally exempt from IPVA, as long as the market value of the car is up to R$ 300 thousand. Hybrids are left out of this benefit and need to pay the common rate, which is 2.5%.
The Federal District is one of the few places where the exemption is valid for both types of vehicle, regardless of other factors such as the age of the car. This benefit is valid as long as they are purchased at dealerships located in the federative unit itself.
There is an exemption, but only for electric vehicles purchased in Maranhão. Cars purchased in other federative units, even registered in the state, are not eligible. Meanwhile, hybrids pay a 2.5% fee.
In Minas Gerais, the benefit is only offered to electrified vehicles produced in the state. Another rule is that the price of vehicles cannot exceed 36,000 Ufemgs (Fiscal Units of the State of Minas Gerais), equivalent to R$ 199,116.
Thus, in practice, only the Fiat Pulse and Fastback Hybrid mild hybrids have this privilege.
For the first year in history, the state in the North region grants total exemption from IPVA for electric cars, as long as their price is up to R$ 150 thousand. Hybrid vehicles, on the other hand, pay the standard rate of 2.5% for automobiles.
In the state of the Northeast, the exemption covers only electric vehicles. Meanwhile, hybrid vehicles are charged at 2.5% on the value of the car, the same rate for passenger cars.
There is a release of tax payment, but only for 100% electric vehicles. Hybrids pay the same rate (2.4%) as other passenger cars.
In the northeastern state, there is no exemption, a discount was established for electric cars who pay 1% of the market value. Meanwhile, hybrids are taxed in the same way as other cars, with a rate of 2.5% for cars with a value of up to R$ 150 thousand, or 3% with a value above R$ 150 thousand.
Drivers in Rio de Janeiro who own an electrified vehicle are not exempt, but are entitled to a discount. In the case of electric vehicles, the rate is reduced to 0.5% and hybrids get a rate of 1.5%.
Currently, the total exemption is valid only for electric vehicles. Hybrid cars pay a 3% tax rate, the state’s standard rate.
In the state, the release of the tax has been granted only for 100% electric vehicles since 1996. Hybrids, on the other hand, are not covered and pay a rate of 3%.
In the state, 100% electric models do not have any type of exemption or reduction in the value of the IPVA and pay a 4% rate. To be entitled to the exemption, the vehicle must:
Only Toyota’s Corolla and Corolla Cross models fit these parameters. The restrictive parameters leave out models that use mild hybrid systems such as Fiat, which use a motor-generator below 40 kW and the voltage is between 12V and 48V.
An initiative by the city of São Paulo allows electric vehicles registered in the capital to have a partial refund of the city hall quota (limited to about R$ 3,300).
Recently, the government of Tocantins sanctioned Law No. 219, of November 4, 2025, which expands the scope of the IPVA exemption for electric and hybrid vehicles.
The new legislation establishes that, until December 31, 2026, electrified cars that have more than one propulsion engine, at least one of which is powered by electricity, will be entitled to tax exemption. This benefit is granted as long as the car has been purchased through a dealership established in Tocantins.
These are the federative units that do not have any tax benefits for electrified vehicles:
