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Proposal Foresees ITBI Calculation Based on Market Value in 2025. Tax May Double in Capitals and Make Property Purchases More Expensive for Families and Businesses.
The Property Transfer Tax (ITBI) is a municipal tax paid by those who purchase a property. Currently, in most Brazilian cities, it is charged based on the appraised value — an estimate by the city hall that often falls below the actual market value.
In 2025, however, a project approved in the Legislative Chamber of the Federal District (PL 1593/2025) reignited national discussion: the proposal establishes that ITBI should be calculated based on the market value, that is, the actual transaction price. If this change is confirmed in other capitals, the tax paid by families could double in some cases, especially for high-end properties.
The Legislative Chamber of the Federal District approved, in June 2025, the Bill No. 1593/2025, which proposes using the market value of the property as the basis for calculating ITBI, replacing the traditional appraised value set by the city hall. The proposal amends Article 6 of Law No. 3.830/2006 and provides that the value declared by the taxpayer will have a presumption of accuracy, being contestable only through an administrative process.
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How ITBI Works Today
ITBI is a municipal tax, and each city hall defines its calculation base. In São Paulo, Rio de Janeiro, Belo Horizonte, Recife, and other capitals, the tax varies between 2% and 3% of the property’s appraised or reference value.
In practice, this appraised value is usually lower than the market value, which reduces the calculation base and, consequently, the tax paid. For example:
- A property appraised by the city hall at R$ 500 thousand, but negotiated in the market for R$ 700 thousand, pays ITBI on the amount of R$ 500 thousand.
- With the new rule, the calculation would be on R$ 700 thousand, raising the tax by up to 40% or more.
The Case of the Federal District as an Example
In the Federal District, the approval of the PL 1593/2025 determined that ITBI should be calculated based on the market value of properties, replacing the appraised value. The justification by the legislators is to correct distortions that reduced revenue and did not reflect the real prices of transactions.
Now, the proposal awaits the local Executive’s sanction. If confirmed, the measure should come into force in 2025, potentially serving as a model for other Brazilian capitals.
Direct Impact on the Buyer’s Wallet
The increase in ITBI directly impacts those purchasing properties, as the tax is paid upfront, at the time of the deed and registration at the notary office.
A practical example:
- Property worth R$ 1 million in São Paulo, with a rate of 3%.
- If calculated based on the appraised value of R$ 700 thousand, the tax is R$ 21 thousand.
- If calculated based on market value, the tax rises to R$ 30 thousand.
Thus, an immediate increase of R$ 9 thousand in the acquisition cost.
For more expensive properties, the difference can exceed tens of thousands of reais, forcing buyers to reconsider their financial planning or even withdraw from the purchase.
Impacts on the Real Estate Market
Real estate sector experts point out that the change may generate contradictory effects:
- Increase in municipal revenue: cities like São Paulo and Rio could collect billions more per year.
- Higher acquisition costs: buyers, especially from the middle class, may postpone the purchase of their own home due to the increase in tax.
- Impact on formalization: there is concern that some transactions may shift to informality, with underreporting of values to reduce the calculation base.
- Pressure on financing: since ITBI cannot be financed within real estate credit, the buyer needs to have more personal resources to pay the tax.
The Municipalities’ Side
City halls defend the change arguing that the current model generates revenue loss and does not keep up with the actual appreciation of properties. For municipal coffers, updating ITBI is seen as essential to balance the accounts and fund public policies.
In São Paulo, for example, ITBI collected more than R$ 2.5 billion in 2024. With the charge based on market value, the estimate is for an increase of over R$ 1 billion per year.
Legal Challenges and Possible Disputes
The proposal, however, is likely to face legal challenges. The Supreme Federal Court (STF) already decided in 2022 that ITBI should be calculated based on the transaction value — and not on reference values set by the city halls.
The discussion now is whether the adoption of the market value established by reports or tables respects this decision, or if it may open the door for new conflicts between taxpayers and municipal governments.
International Comparison
In the global scenario, the collection of taxes on property transfers usually reflects the real value of transactions. Countries like the United States and Portugal apply the tax based on the price declared in the deed, subject to audit.
By moving in this direction, Brazil is getting closer to these practices, but faces the challenge of dealing with a market where underreporting of values is still common.
What May Happen Starting in 2026
If the rule is sanctioned in Brasília and adopted by other capitals, experts believe that up to half of Brazilian municipalities may switch to calculation based on market value by 2026.
This would make ITBI one of the most relevant taxes in the buying and selling of properties, requiring even greater financial planning from families and real estate sector companies.
The change in the way ITBI is calculated marks a turning point in the taxation of the Brazilian real estate market.
By adopting market value as the basis, municipalities increase their revenue, but also raise the immediate cost for buyers.
For those planning to acquire properties in the coming years, the alert is clear: the cost of the tax may double, making purchases more expensive and requiring even more financial preparation.
Pq não votam na redução da alíquota do iptu
Olha fico indicado com estas propostas dos parlamentares que só é para lascar com o cidadão brasileiro eles fazem o que quer com nós os inposto e valor venal já são altíssimo imagina como vai ser o mercado imobiliário vai cair aí gera desemprego e queda do movimento econômico.
Ah os prefeitos,secretários, senadores,deputados ,vereadores etc, eles ganha mal salário deles só de ir até gabinete mais R$26.000 fora mordomia auxílio de todo tipo ,uma vergonha esse país qto trabalhador ganha as vezes salário mínimo e paga imposto para esses lixos viajar com família,ir trabalhar as vezes 2 hrs olha lá, ao invés estudar vamos criar nossos filhos ser políticos quem sabe temos privilégio ganhar bem sem fazer nd uma vergonha