Law provides for fines, points on the CNH and seizure for vehicles that do not have an updated license, but do not punish when the case is of pending tax
The collections of the Motor Vehicle Property Tax (IPVA) for the 2026 fiscal year have already started in Brazilian states, where taxpayers can choose to pay in cash or in installments. However, this is an expense that weighs on the pocket of Brazilians, so many fail to pay it on time and this has consequences.
This pending issue has several possible impacts involving factors such as the car document, fines, CNH score, among others. However, the action of seizure of the vehicle for late IPVA may be illegal. In this article you can check what happens if the driver does not pay the tax, possible losses and when he may suffer the consequences of non-payment of the tax.
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First, while the tax is not paid, the owner is prevented from licensing and an eventual transfer of the car. That is, the owner will not be able to issue the vehicle document.
There is also a small fine, added for each day of delay, up to a limit of 20%, and monthly interest equivalent to the Selic rate or 1%, whichever is greater. As the collection of IPVA is a state responsibility, the rules may change in each of the Brazilian federative units.
In addition, the owner may have his name registered in the active debt of the State, a fact that prevents the provision of public tenders and hinders financing. Being late with the IPVA does not lead to imprisonment, although it generates a lot of headaches.
Contrary to what many people think, failing to pay the IPVA does not give a fine, nor does it generate the seizure of the vehicle directly. You can even drive with the tax in arrears, as long as the collection of the updated CRLV has not started.
However, this window does not last long and eventually the document will be required, so if you do not pay soon you will be fined. This is because, in order to issue the CRLV, a mandatory carrying document, it is necessary to pay the IPVA and if you do not make the payment, you will be prevented from renewing the licensing.
In summary: the vehicle can be seized, or towed, but not for non-payment of the IPVA, but for the absence of updated annual licensing. Towing a car for late IPVA is an illegal practice, because it is configured as a coercive charge. In addition, there is no article in the Brazilian Traffic Code (CTB) that determines this practice.
Without the license up to date, then the driver is committing a traffic violation and can be punished with a fine and seizure of the vehicle. This is provided for in the fifth item of article 230 of the CTB:
Art. 230 – Driving the vehicle:
V – that is not registered and duly licensed”;
Infraction – very serious (7 points);
Penalty – fine (R$ 293.47) and seizure of the vehicle;
Administrative measure – removal of the vehicle.
It is also worth remembering that if the vehicle is seized, the owner must regularize the situation of the asset. It is necessary to pay not only the amount of the tax, but the fines and fees to remove the car from the yard of the State Department of Traffic (Detran).
