IPTU

IPTU (Imposto Predial e Territorial Urbano) is a municipal tax levied in Brazil on the ownership of urban real estate. The tax applies to both residential and non‑residential properties, including land and built‑up areas situated within the limits of a city or town. Its legal basis is the Federal Constitution of 1988, which grants municipalities the autonomy to create and collect taxes related to urban property, and the law is regulated by the Urban Building and Land Tax Code (Lei nº 5.172/1966) and complementary state and municipal legislation.

The taxable base is determined by the “valor venal” of the property, an estimated market value established by the municipal tax authority. This value takes into account factors such as location, size, construction type, age, and prevailing market conditions. The municipality then applies a tax rate, expressed as a percentage of the taxable base, which may vary according to the property's use (residential, commercial, industrial) and its location within the urban area. In many cities, progressive rates are applied, with higher percentages for properties of greater value.

IPTU is usually collected annually, although some municipalities allow quarterly or monthly payments. The taxpayer receives a notice (carnê) indicating the due dates, amounts, and any applicable discounts for early payment or penalties for late settlement. The revenue generated by IPTU constitutes a significant portion of municipal budgets, financing services such as urban infrastructure, sanitation, education, and health.

Exemptions and reductions are provided by law for specific categories, including low‑income households, public buildings, religious institutions, and properties used for social housing, subject to strict eligibility criteria and documentation. The tax is subject to periodic reassessment, and property owners may contest the valuation or rate through administrative appeals or judicial proceedings.