São Paulo Sends 2026 IPTU Bill With Caps Intact and Wider Exemptions

Overview

• The bill revises the city’s property value map for 2026 and keeps annual IPTU increases capped at 10% for residences and 15% for commercial properties.
• The automatic exemption threshold rises to R$150,000, single-home owners are exempt up to R$260,000, and properties valued from R$260,000 to R$390,000 receive reductions.
• Residents in ZEIS 1, 2 and 4 would be exempt from IPTU through 2030, covering about 285,000 properties, roughly 100,000 of which still pay today.
• The proposal eliminates the R$14,500-per-square-meter ceiling on valuations, which can lift venal values in wealthier areas, while vacant or underused lots are not protected by the annual cap.
• City officials say more properties will see tax cuts than increases, though the permitted adjustments can outpace inflation of 3.15% year to date in August, and the text awaits debate and possible amendments with no vote scheduled.