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IPTU, the municipal property tax in Brazil: who pays, the assessed value base and how São Paulo sets its rates

Last verified: 2026-10-27 · Status: Stable

IPTU is the annual municipal tax on ownership, useful domain or possession of urban property, charged on the assessed value (valor venal) that each municipality sets, with rates that may rise with value and vary by location and use. Owners of vacant or underused urban land in plan areas can face a rising IPTU for up to five years, up to 15 percent. In São Paulo the base rate is 1 percent for homes and 1.5 percent for other buildings and land, with discounts and surcharges by value band, so a R$1,000,000 home pays about R$10,900 a year before any exemptions.

USD figures use the Banco Central do Brasil PTAX selling rate of R$5.3346 per US dollar for 27 October 2026. Conversions are for orientation only.

Key facts

IPTU base rate for homes, city of São Paulo (before value band adjustments)	1.0 %Lei Municipal nº 6.989/1966 art. 7, as of 2026-10-27 · in force
IPTU base rate for non residential buildings, city of São Paulo (before value band adjustments)	1.5 %Lei Municipal nº 6.989/1966 art. 8, as of 2026-10-27 · in force
Territorial IPTU base rate for land, city of São Paulo	1.5 %Lei Municipal nº 6.989/1966 art. 27, as of 2026-10-27 · in force
Maximum progressive IPTU rate on idle urban land after a compulsory use notice	15 %Lei nº 10.257/2001 art. 7 § 1, as of 2026-10-27 · in force
IPTU base	Assessed value (valor venal) set by the municipality CTN art. 33, as of 2026-10-27 · in force

The rule

1. Municipalities levy a tax on urban land and buildings. The tax may be progressive by the value of the property, may have different rates by location and use, and its base may be updated by the municipal executive under criteria set in municipal law. Separately, it may be progressive over time as a sanction for unused urban land under art. 182 § 4 II.
Cost to do it: Annual, under each municipal law.Constituição Federal of 5 October 1988, art. 156 as amended by Emenda Constitucional nº 29 of 2000 and Emenda Constitucional nº 132 of 20 December 2023, Art. 156 I and § 1 I to III, 2023-12-20 official text · verified 2026-10-27 · changed: Emenda Constitucional nº 132 of 2023 added § 1 III, letting the municipal executive update the IPTU base under criteria in municipal law.

2. Taxable event, base and taxpayer. IPTU falls on ownership, useful domain or possession of property located in the urban zone defined by municipal law, which must have at least two public improvements among: curbs or paving with storm drainage, water supply, sewerage, street lighting, and a primary school or health post within 3 km. Urbanizable or expansion areas in approved subdivisions can also be treated as urban. The base is the assessed value of the property, excluding movable goods kept there, and the taxpayer is the owner, the holder of the useful domain or the possessor on any basis.
Cost to do it: Possessors are taxpayers too, so a buyer in possession under a purchase commitment can be charged before registration.Lei nº 5.172 of 25 October 1966 (Código Tributário Nacional), Arts. 32 §§ 1 and 2, 33 and 34, 1966-10-25 official text · verified 2026-10-27

3. São Paulo rates. Homes pay 1.0 percent of the assessed value and other built properties 1.5 percent, plus a discount or surcharge on the portion of value in each band: for homes, minus 0.3 percent up to R$150,000, minus 0.1 percent from R$150,000 to R$300,000, plus 0.1 percent from R$300,000 to R$600,000, plus 0.3 percent from R$600,000 to R$1,200,000 and plus 0.5 percent above R$1,200,000; for non residential buildings, minus 0.4, minus 0.2, zero, plus 0.2 and plus 0.4 percent over the same bands. Land (territorial tax) pays 1.5 percent with the same bands as non residential buildings.
Cost to do it: Effective São Paulo residential rate is about 1.1 percent at R$1,000,000 (R$10,900 a year) and rises toward 1.5 percent at high values.
Example: Home with assessed value R$1,000,000: 1.0 percent is R$10,000; band adjustments of minus R$450, minus R$150, plus R$300 and plus R$1,200 give about R$10,900 a year. / Home of about US$187,455, IPTU of about US$2,043 a year.Lei Municipal de São Paulo nº 6.989 of 29 December 1966, arts. 7 and 8 as worded by Lei nº 13.250 of 2001, arts. 7-A, 8-A and 28 as worded by Lei nº 13.475 of 2002 and Lei nº 15.889 of 2013, art. 27, Arts. 7, 7-A, 8, 8-A, 27 and 28, 1966-12-29 official text · verified 2026-10-27

4. Progressive IPTU on idle land. A municipal law for areas in the master plan may order compulsory subdivision, building or use of unbuilt, underused or unused urban land, with the notice recorded on the matrícula, at least one year to file a project and two years after approval to start works. If the owner does not comply, the municipality applies a progressive IPTU for five consecutive years, the rate each year being no more than twice the prior year, up to 15 percent; after five years the maximum rate continues until compliance, and no exemption or amnesty is allowed. Expropriation paid in public debt securities is the next step.
Cost to do it: Up to 15 percent of the assessed value per year for land that ignores a compulsory use notice.
Example: A plot assessed at R$2,000,000 at the 15 percent cap pays R$300,000 a year. / Plot of about US$374,911, up to about US$56,237 a year.Lei nº 10.257 of 10 July 2001 (Estatuto da Cidade); Constituição Federal art. 182 § 4, Lei nº 10.257 art. 5 §§ 2 and 4, arts. 7 and 8, 2001-07-10 official text · verified 2026-10-27

Portion of assessed value	Homes (base 1.0%)	Other buildings and land (base 1.5%)
Up to R$150,000	minus 0.3%	minus 0.4%
R$150,000 to R$300,000	minus 0.1%	minus 0.2%
R$300,000 to R$600,000	plus 0.1%	0.0%
R$600,000 to R$1,200,000	plus 0.3%	plus 0.2%
Above R$1,200,000	plus 0.5%	plus 0.4%

São Paulo IPTU band adjustments, added to the base rate on the portion of value in each band (Lei nº 6.989 arts. 7-A, 8-A and 28, as worded by Lei nº 15.889/2013).

Worked example

São Paulo home. Assessed value R$1,000,000 (about US$187,455): annual IPTU about R$10,900 (about US$2,043), before any exemption or discount for paying in a lump sum.
São Paulo office. Assessed value R$3,000,000 (about US$562,366): 1.5 percent is R$45,000; band adjustments of minus R$600, minus R$300, zero, plus R$1,200 and plus R$7,200 give about R$52,500 a year (about US$9,841).

Step by step

1. Find the property's municipal cadastral number (in the matrícula, Lei nº 6.015 art. 176) and the current assessed value on the IPTU bill.
2. At purchase, get a municipal tax clearance certificate for the property, since unpaid IPTU follows the property.
3. Check whether the property sits in an area with a compulsory use law (Lei nº 10.257 art. 5) and whether a notice is recorded on the matrícula.
4. In leases, allocate IPTU expressly: the landlord pays property taxes unless the contract says otherwise (Lei nº 8.245 art. 22 VIII).

Common traps

Buying idle land in a compulsory use area. The progressive IPTU can reach 15 percent a year with no amnesty (Lei nº 10.257 art. 7).
Assuming possession without title escapes IPTU. Possessors are taxpayers (CTN art. 34).
Comparing cities by headline rate. Each municipality sets its own rates, bands and assessed values, so the bill can differ widely for similar properties.

Sources

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