Countries › Brazil › Guide › 6. Taxes › ITCMD in Brazil: the state inheritance and gift tax, the 8 percent ceiling, mandatory progressive rates and the 2026 national rules

ITCMD in Brazil: the state inheritance and gift tax, the 8 percent ceiling, mandatory progressive rates and the 2026 national rules

Argentina. For full detail on Argentina, go to The Argentine Thread.

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

Brazil has no federal inheritance tax; each state and the Federal District charges ITCMD on transfers on death and on gifts of any assets or rights, under its own law. The Senate caps the rate at 8 percent, and since Constitutional Amendment 132/2023 rates must be progressive by the value received; real estate is taxed where it sits, and movables and shares where the deceased or donor lived. Complementary Law 227/2026 set national rules for cases with a donor, deceased or heir abroad, and for valuing unlisted shares at no less than adjusted equity at market value plus goodwill.

USD figures use the Banco Central do Brasil PTAX selling rate of R$5.5007 per US dollar for 26 October 2026, the latest rate published when this page was verified. Conversions are for orientation only; the rate on the day of each FX contract will differ.

Key facts

Maximum inheritance and gift tax rate (ITCMD) set by the Senate	8 %Senate Resolution 9/1992 art. 1, as of 2026-10-27 · in force
ITCMD rates must be progressive by value	Yes statusConstitution art. 155 § 1 item VI, as of 2026-10-27 · in force
Level of government that charges inheritance and gift tax	State and Federal District statusConstitution art. 155 item I, as of 2026-10-27 · in force

The rule

1. State tax: the states and the Federal District levy a tax on transfers on death and gifts of any assets or rights. Real estate is taxed by the state where it is located; movables, securities and credits by the state where the deceased or the donor was domiciled. A complementary law regulates cases where the donor lives abroad or the deceased had assets, residence or domicile abroad, or the estate was processed abroad.Constitution of the Federative Republic of Brazil, as amended by Constitutional Amendment 132 of 20 December 2023, Art. 155 item I and § 1 items I to III, 2023-12-20 official text · verified 2026-10-27 · changed: Constitutional Amendment 132/2023 moved the connecting factor for movables on death from the place of the probate to the deceased's domicile.

2. Maximum rate: the Senate sets the maximum rate, and Senate Resolution 9/1992 fixes it at 8 percent from 1 January 1992, allowing state rates to be progressive by the share each heir receives.
Cost to do it: At most 8 percent of the value transferred
Example: Inheritance of R$10,000,000: at most R$800,000 / Inheritance of US$1,817,950.44: at most US$145,436.04Senate Resolution 9 of 5 May 1992; Constitution art. 155 § 1 item IV, Arts. 1 and 2, 1992-05-05 official text · verified 2026-10-27

3. Progressive rates are mandatory, according to the value of the share, legacy or gift; transfers to non profit institutions of public and social relevance, including charities linked to religious bodies and scientific and technology institutes, are outside the tax under conditions set by complementary law.Constitution art. 155 § 1 items VI and VII, inserted by Constitutional Amendment 132/2023, Art. 155 § 1 items VI and VII, 2023-12-20 official text · verified 2026-10-27

4. Cross border competence: real estate in Brazil is taxed by its state even if the deceased or donor lived abroad. For movables, credits and securities on death, the deceased's state of domicile applies, or the heir's if the deceased lived abroad; for gifts, the donor's, or the donee's if the donor lived abroad; if both are abroad, the state where the assets are located in Brazil.Complementary Law 227 of 13 January 2026, Book II (ITCMD), Arts. 158 and 159, 2026-01-13 official text · verified 2026-10-27 · changed: Complementary Law 227/2026 supplied the national rules required by art. 155 § 1 item III for cases involving persons or assets abroad.

5. Tax base: market value of the assets, less proven debts of the deceased; financial investments at market value on the taxable date. Shares or quotas without active trading on an organized market in the prior 90 days are valued at no less than adjusted net equity at market value plus the market value of goodwill, using a technically suitable method; listed shares at the previous day's closing price.Complementary Law 227/2026, Book II (ITCMD), Arts. 152 and 154, 2026-01-13 official text · verified 2026-10-27

6. Rates in time: on death, the rate in force when the succession opens applies; on gifts, the rate in force on the gift date; successive gifts between the same parties are aggregated for the progressive scale.Complementary Law 227/2026, Book II (ITCMD), Arts. 155 and 156, 2026-01-13 official text · verified 2026-10-27

7. Outside the tax: benefits from open or closed private pension plans, insurance, pecúlio and similar contracts, even when paid to a named third party.Complementary Law 227/2026, Book II (ITCMD), Art. 150 item III, 2026-01-13 official text · verified 2026-10-27

Asset	Deceased or donor in Brazil	Deceased or donor abroad
Real estate in Brazil	State where located	State where located
Movables, shares, credits (death)	Deceased's state of domicile	Heir's state of domicile
Movables, shares, credits (gift)	Donor's state of domicile	Donee's state of domicile; if both abroad, state where the assets are

Which state taxes (Constitution art. 155 § 1; Complementary Law 227/2026 arts. 158 and 159)

Worked example

Quotas in a Brazilian Ltda. worth R$10,000,000 (US$1,817,950.44), valued at no less than adjusted equity at market value plus goodwill, pass on death to an heir. At the 8 percent ceiling the tax would be R$800,000 (US$145,436.04); the actual rate is the state's progressive rate for the heir's share.
A parent living abroad gives shares of a Brazilian company to a child living in São Paulo: the child's state of domicile is competent for the gift.

Step by step

1. Identify the competent state for each asset under the table above.
2. Value unlisted quotas or shares at least at adjusted equity at market value plus goodwill, with a supporting valuation.
3. Apply the competent state's progressive table in force on the date of death or gift, aggregating earlier gifts between the same parties.
4. Consider succession planning while the deceased or donor is alive, including pension and insurance structures outside the tax.
5. Check the competent state's law for how and when it adopts the national rules of Complementary Law 227/2026.

Common traps

Rates vary by state up to 8 percent; moving domicile changes which state taxes movables and shares.
Valuing a family company at book value is no longer enough for unlisted shares: goodwill at market value must be added.
Splitting gifts over time does not avoid higher brackets, because successive gifts between the same parties are aggregated.
Proposals to raise the 8 percent ceiling have been filed in the Senate; check the resolution in force before planning.

Sources

Related: Brazil country profile · live dashboard · central bank and release calendar · our posts on X · where Argentina is involved, see The Argentine Thread guide

← Capital gains tax for non residents selling Brazilian assets: progressive rates, 25 percent for favored jurisdictions, and buyer withholdingBrazil's consumption tax reform: IBS, CBS and IS timeline →