Who is entitled to IPVA exemption? Is it better to pay in cash or in installments? See questions and answers

The tax is mandatory for anyone who owns a car, but there are some cases where owners are exempt

THE Motor Vehicle Ownership Tax (IPVA) It is a state tax that burdens the budgets of millions of Brazilians. The tax, charged annually, is mandatory for everyone who owns a car. In some cases, however, many homeowners who meet specific criteria are exempt from this tax.

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Although exemption is granted to certain categories, according to state laws, there are common rules about who is entitled to tax exemption. In general, the IPVA exemption considers factors such as the age of the vehicle, its use and the specific conditions of the owner. For example, anyone who owns a PwD (Persons with Disabilities) vehicle is exempt from paying IPVA.

Some states also provide exemptions for vehicles belonging to taxi drivers, philanthropic and religious organizations. In early December, the Legislative Assembly of the State of São Paulo (Alesp) approved the IPVA exemption until 2026 for owners of less polluting light-duty vehicles.

Except PernambucoMost states also adhere to the 15-year period for automobile manufacturing to exempt the owner from paying IPVA. The states of Saint Paul, Paraná, Mato Grosso do Sul AND Rio Grande do Sul determine that the car must have been manufactured at least 20 years ago.

Cars exempt from IPVA 2025 in the States

• Amapá and Rio Grande do Norte: cars produced more than 10 years ago, i.e. since 2015;
• Amazonas, Bahia, Ceará, Federal District, Espírito Santo, Goiás, Maranhão, Pará, Paraíba, Piauí, Rio de Janeiro, Rondônia, Sergipe: cars produced more than 15 years ago (2010);
• Mato Grosso: cars produced more than 18 years ago (2007);
• Acre, Sao Paulo, Paraná, Mato Grosso do Sul, Rio Grande do Sul: cars produced more than 20 years ago (2005);
• Alagoas: vehicles produced up to 31 December 2002 are exempt from IPVA;
• Santa Catarina and Tocantins: cars produced more than 30 years ago (1995).
• Minas Gerais: black band or of historical value (1995)
• Pernambuco: not exempt

The categories mentioned which are exempt from IPVA may change over time. It is therefore advisable to check the information with the state road traffic agencies, as well as consult the legislation in force in the State in which the vehicle is registered.

If you do not fall into the above categories, you will have to pay IPVA in 2025. The highest amounts are charged in the states of Minas Gerais, Rio de Janeiro and Sao Paulo, which have rates of 4%. While the lowest amounts are recorded in Acre, Espírito Santo, Santa Catarina and Tocantins, at 2%.

Is it better to pay in cash or in installments?

As a rule, those who pay in cash receive a discount. In Sao Paulo, for example, taxpayers can pay their taxes in advance in January, in a single payment, with a 3% discount. The IPVA discount in Rio de Janeiro is also 3% for one-time payment.

What happens if I delay paying the IPVA?

Taxpayers who fail to pay taxes are subject to fines and late payment interest based on the Selic rate. After 60 days the penalty percentage is set at 20% of the tax amount. If the IPVA remains in default, the debt will be recorded in the Active Debt, in addition to the inclusion of the owner’s name in the Cadin of the State, preventing him from taking advantage of any credit he may have due to the request for the Nota Fiscal Paulista.

Source: Terra

Rose

Rose James is a Gossipify movie and series reviewer known for her in-depth analysis and unique perspective on the latest releases. With a background in film studies, she provides engaging and informative reviews, and keeps readers up to date with industry trends and emerging talents.