Brazil implements national IPVA tax exemption for vehicles 20+ years old

Brazil has implemented a new national standard for the Motor Vehicle Property Tax (IPVA) following the enactment of Constitutional Amendment 137 on December 9, 2025. The rule establishes a uniform criterion across the country, granting permanent tax exemption to vehicles that are 20 years or older.

Previously, tax exemption policies were fragmented, with individual states exercising autonomy to define the age threshold for relief. This standardization provides greater predictability for taxpayers. The measure has already impacted the automotive sector; data from Webmotors indicates an 18% increase in searches for vehicles within the exemption age bracket, particularly benefiting popular models from manufacturers such as Fiat and Volkswagen.