Where do electric and hybrid cars not pay or have a discount on IPVA?

The IPVA charge has undergone changes and adaptations to encourage the sale of electric and hybrid cars. For this reason, in some states total or partial tax exemption is already a reality. The justification is also because vehicles in these categories emit fewer polluting gases.

In 2024, 9 Brazilian states and the Federal District joined the implementation of the tax exemption for this type of automobile or for models powered by natural gas and less polluting variations. Find out what they are and what the rules are.

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For owners of combustion vehicles, the federative unit charges a tax rate of 3.5% for private or passenger vehicles. However, according to Law 6,466/2019, the Federal District guarantees total tax exemption for both 100% electric vehicles and hybrid models.

IPVA for electric and hybrid cars in the states

Illustrative image for recharging electric cars

Alagoas – Electric and hybrid models do not need to pay tax in the first year, but in subsequent years, the rates are reduced. Electric vehicles will pay 0.5% from the second year onwards, a percentage that increases to 1% in the third year. Hybrids pay 0.75% the following year and, from the second year post-purchase, 1.5%. CNG-powered cars pay 1.5%.

Federal District – The Federal District covers 100% of the tax for electric and hybrid cars.

Minas Gerais – The exemption regulation on the value of IPVA has some peculiarities in relation to electric and hybrid vehicles. The law grants total tax exemption only in cases of electrified products produced in the state itself, something that, in practice, does not yet exist.

Paraná – Granted total exemption until 2023. In 2024, electric and hybrid models will be taxed at 3.5% of their market value, in the same way as vehicles with combustion engines. Models powered by natural gas have a tax reduction of 1%.

Pernambuco – grants exemption from IPVA only for fully electric cars. Hybrids are not covered by the concession. The benefit is granted automatically, as long as the vehicle owner does not have outstanding debts regarding any IPVA linked to his name.

Rio de Janeiro – Does not grant exemption, but reduces the rate from 4% to 0.5% in the case of an electric model. In the case of hybrids, the tax reduction is also smaller, at 1.5%. The percentage also extends to vehicles powered by natural gas. For vehicles with engines produced exclusively to run on alcohol, the rate is 2%.

Rio Grande do Sul – Electric cars are exempt from the tax, but hybrid models are excluded from this benefit, as well as engines powered by natural gas. Thus, for models that do not fit into the category, the rate remains at 3%, as well as for combustion cars.

São Paulo – Even with the highest number of electric and hybrid car registrations in the country, there is no IPVA discount incentive by the state government. Exclusively in the capital of São Paulo, a 50% tax refund is offered to owners of electric and hybrid vehicles, as well as exemption from municipal rotation for both categories.

Maranhão – Exempts electric cars from IPVA charges. However, they must have been purchased or billed at a dealership in Maranhão itself. Hybrids pay a tax rate of 2.5%.

  • Mato Grosso do Sul – They have a reduction in the calculation base. Alcohol models have a discount of up to 40%, a percentage that increases to 70% for electric vehicles and 100% for those powered by CNG.
  • Bahia – Recently, the Bahia State Finance Secretariat reported that, with a commitment to promoting sustainable practices, it is granting exemption from Motor Vehicle Ownership Tax (IPVA) for 100% electric vehicles with a market value of up to R$ 300,000.00.

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