Specialist explains why almost half of the air conditioner’s price is made up of taxes

Did you know that taxes can represent more than 50% of the air conditioner’s price? Specialist explains which taxes increase the product’s cost in Brazil.

When a Brazilian consumer buys an air conditioner, most of what they pay does not go to the manufacturer or the store — it goes to the government. According to tax lawyer Carlos Renato Cunha, a professor of Law at the Pontifical Catholic University of Paraná (PUCPR), in a conversation with CanalTech, the tax burden on this type of product can exceed 50% of the final price, depending on the state, model, and origin of the device. Despite being a determining factor in the charged value, this portion almost never appears detailed on the invoice — which means many consumers simply do not realize the weight of taxes at the time of purchase.

Which taxes increase the cost of the air conditioner?

According to the specialist, it is necessary to distinguish two types of taxation that affect the product. The first group consists of taxes that directly affect the sale of the device. The second includes taxes that fall on companies — such as Income Tax — and that, even without appearing on the invoice, end up being embedded in the final price passed on to the consumer.

In Professor Cunha’s words: “We must separate the taxes that directly affect the sale of air conditioners from those that indirectly affect it.”

The main direct taxes that increase the product’s cost are:

• ICMS — state tax, which varies according to the state. In Paraná, for example, the rate is 19.5%
• IPI — federal tax that can vary between 20% and 35%, depending on the type of device
• PIS/Cofins — federal taxes that, in the non-cumulative regime, add up to 9.65%
• Import Tax — applicable only to imported models, with a rate between 16% and 18%

By adding only ICMS, IPI, and PIS/Cofins on a national product, it is already possible to exceed half the value of the device. For imported products, the cost becomes even heavier.

How much do you pay in taxes for each model? See the estimate

Based on the average rates provided by the specialist — ICMS of 19.5%, IPI of 25%, and PIS/Cofins of 9.65% —, the CanalTech website estimated how much of the taxes are embedded in the price of some popular air conditioner models in the Brazilian market:

⚠️ The values are estimates based on average market rates and serve only as a reference. The actual calculation may vary according to the company’s tax regime and the commercial operation involved. (Source: CanalTech)

The numbers make it clear: in an entry-level air conditioner, such as the 9,000 BTU Philco model, more than R$ 840 of the total price corresponds to taxes. In higher power devices, this value can easily exceed R$ 2,300.

Why does the tax burden vary so much from one state to another?

An important point highlighted by Professor Cunha is that there is no single national rate for these products. Several factors determine the final percentage of taxation that applies to the air conditioner until it reaches the consumer’s hands:

• The state where the product is sold, as ICMS varies among the federation units
• The tax regime of the selling company (Simples Nacional, Presumed Profit or Real Profit)
• The origin of the product: imported appliances are subject to an additional Import Tax, which can vary from 16% to 18%
• The type of appliance, which directly influences the IPI rate charged

Therefore, the same model can have different prices in different states — not only due to logistics or the retailer’s margin, but also due to the variation in taxes applied in each region.

Does a more energy-efficient appliance pay less tax?

Many consumers believe that opting for an air conditioner with better energy efficiency — the so-called inverter models, for example — also means paying less tax. But, according to the specialist, this is not true currently.

“There is no generally lower taxation in retail today just because the appliance is more energy-efficient”, says Cunha. In other words, energy consumption savings are not accompanied by any direct tax benefit to the final consumer at the time of purchase.

Tax reform: what changes for air conditioner buyers from 2026?

Brazil is in full transition to a new consumption tax model. In 2026, two new taxes will be introduced experimentally:

• CBS — federal tax that will replace PIS and Cofins
• IBS — state and municipal tax that will replace ICMS

For now, as Professor Cunha explains, “this is a test year, with collection waived” — which means that the new taxes will not yet be effectively charged in 2026. The most significant change, however, is already foreseen: the way taxes appear to the consumer.

Unlike the current model — where taxes are embedded in the price without clear discrimination — the new system foresees that CBS and IBS will be charged separately from the sale price. In practice, this means that consumers will be able to see, more clearly, how much tax they are paying on each product purchased, including air conditioners.

According to Cunha, “IBS and CBS will be charged separately from the sale price, allowing greater transparency of the tax burden” — which represents an important step forward for those who want to truly understand the real cost of a product.

What becomes clear after all this?

Taxation on air conditioners in Brazil is high, complex, and, most of the time, invisible to the consumer. The sum of ICMS, IPI, and PIS/Cofins is already enough to exceed half the price of the product — and, in the case of imported appliances, the bill becomes even heavier with the addition of Import Tax.

Furthermore, choosing a more energy-efficient model does not reduce the tax burden. And the burden varies according to the state, the type of product, and the tax regime of the selling company — which makes price comparison even more complex for those researching before buying.

The ongoing tax reform promises to bring more clarity to this scenario, but its practical effects on the consumer’s pocket should still take some time to consolidate.

Source: CanalTech

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