Taxes

Motor Vehicle Ownership Tax or Imposto sobre a Propriedade de Veículos Automotores (IPVA) is a state tax levied annually on the ownership of motor vehicles, such as cars, motorcycles, trucks and buses. The IPVA was instituted in 1986 to replace the Single Road Tax or Taxa Rodoviária Única (TRU). The IPVA rate varies from state to state and is calculated based on the market value of the vehicle. Of the total collected, 50% goes to the state and 50% to the municipality where the registration was carried out.

According to Constitutional Amendment No. 132/2023, the IPVA may have different rates depending on the type, value, use and environmental impact (for example, credit for electric vehicles (EVs), including flex-fuel hybrid electric vehicles). This amendment also expanded the range of