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With the return of SPVAT and other tax adjustments, maintaining your car in 2025 will be more expensive. Understand the taxes you will have to pay and how to plan for these extra costs.
Owning a car in Brazil has always been a huge challenge, and nothing will change in 2025. With the return of mandatory insurance, now called SPVAT (Personal Injury Insurance for Land Motor Vehicles), the list of expenses for vehicle owners will become even longer. In addition, there is IPVA and licensing.
Learn about the main costs and taxes you will face when owning a car next year.
IPVA: An Indispensable Tax
IPVA (Tax on Motor Vehicle Ownership) is one of the main costs for those who own a car in Brazil. The value is calculated based on the market value of the vehicle, according to the Fipe Table, and its rate varies from state to state.
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For example, in São Paulo, the rate can reach 4% of the vehicle's market value.
This means that a car valued at R$50 will have an IPVA of R$2.
Furthermore, 20% of the revenue is allocated to Fundeb, supporting basic education, while the remainder is divided equally between the state and the municipality.
To facilitate payment, states offer installments and discounts for those who pay in full.
However, failure to pay prevents the vehicle from being licensed and may result in fines of 0,3% per day for late payment. If the vehicle is stopped at a checkpoint, it may be seized.
Licensing: Guarantee of Circulating Legally
Licensing is another mandatory fee, but unlike IPVA, it has a fixed value. In 2025, the average cost of licensing in São Paulo will be approximately R$150, but the value may vary between states.
This payment is essential to regularize the vehicle's right to circulate, proving that it meets safety and pollutant emission requirements.
Those who do not pay may face very serious fines of R$293,47, loss of seven points on their driver's license and even seizure of their vehicle.
SPVAT: Mandatory Insurance is back
After three years of suspension, mandatory insurance will return in 2025 under the name SPVAT. Managed by Caixa Econômica Federal, it aims to compensate victims of traffic accidents, covering medical expenses, disability and death.
The annual fee will be R$50 to R$60, depending on the state, and may be charged together with the IPVA or separately.
Non-payment makes it impossible to licensing of the vehicle. Coverage includes compensation of up to R$13.500 for death or disability and up to R$2.700 for medical expenses.
Optional Insurance
Although it is not mandatory, private vehicle insurance is still a common choice. It offers broader coverage, including damage to the vehicle and third parties.
Its cost depends on the driver's profile, car model and region.
Is it worth having a car in 2025?
With so many costs involved, it is important to assess whether owning a car is still financially viable. In addition to taxes, maintenance, fuel and parking also come into play.
For many, alternatives such as public transport or mobility apps may be more economical.
Whether you decide to keep or buy a vehicle, financial planning is essential. Stay on top of changes and make sure all fees are up to date to avoid problems in the future.
