Property regularization
2027 IPTU (property tax) in São Paulo: the 10% cap and why the area on record matters
The new Planta Genérica de Valores (the city's property value map) has applied since 2026, and the year-over-year increase in IPTU is capped at 10%. The cap does not hold back the difference that comes from a change in the property registry, such as built area that starts to appear in it.
- Since 2026, the IPTU has been calculated with the new Generic Property Value Schedule (Planta Genérica de Valores), under Law No. 18.330/2025.
- The increase from one year to the next is capped at 10%, for residential properties and for all others.
- When a property's registry data changes, the comparison is made as if the new data had already applied in the previous year.
By MTC Serviços editorial team2 min read
Since January 1, 2026, the IPTU in the city of São Paulo has been calculated using the new per-square-meter values for land and construction from the Generic Property Value Schedule, approved by Law No. 18.330 of November 11, 2025. These values also serve as the basis for the 2027 tax.
The 10% cap
The law kept a cap: the difference between one year's IPTU and the previous year's is limited to 10% for residential properties. For the others, such as stores and offices, the limit was 15% until 2025 and, from 2026, is also 10%. The rule is in art. 9 of Law No. 15.889/2013, amended by the 2025 law.
Cap on the IPTU increase from one year to the next
| Property | Until 2025 | Since 2026 |
|---|---|---|
| Residential | 10% | 10% |
| Others (shops, services, industry) | 15% | 10% |
Because the cap is applied year by year, on the previous year's tax, a property whose value calculated under the new schedule came out more than 10% higher can keep seeing increases in the following years, always up to that cap, including in 2027.
When the cap does not protect
There is an important exception. If the property's data changes in City Hall's records, for example because the built area increased, the previous year's tax used in the comparison is recalculated as if the change already existed. In practice, the part of the increase that comes from updating the records is not subject to the cap.
This is what happens when an expansion comes to appear in the records, for example after regularization: the IPTU starts to consider the real area. Regularization is what allows the construction to be recorded on the property record (matrícula), and the tax follows the property as it really is.
Exemptions and discounts
The 2025 law also changed the exemption brackets. Since 2026, built properties with an assessed value (valor venal) of up to R$ 150,000 are exempt from the Imposto Predial (building tax), as are simpler-standard residential properties (Standards A, B or C, Types 1 or 2) with an assessed value of up to R$ 260,000. Between R$ 260,000 and R$ 390,000, those residential properties get a discount. Exemptions and discounts apply to a single property per taxpayer.
What this changes for you
- Check, on the 2027 IPTU notice, the built area and the use that City Hall has on record for your property.
- If the property is being regularized, expect the IPTU to be calculated on the real area once it enters the records.
- Exemption and discount apply to only one property per taxpayer: whichever gives the greater benefit.
Want to know how this applies to your property or business? MTC reviews it before any proposal.
Chat on WhatsAppSources
- São Paulo City Council: Law No. 18.330/2025 (Generic Property Value Schedule)(opens in a new tab)
- São Paulo City Council: Law No. 15.889/2013, art. 9 (increase cap)(opens in a new tab)
- São Paulo City Council: approval of the Generic Property Value Schedule (October 29, 2025)(opens in a new tab)
Informational text, based on official acts and publications. The ads on this page are for MTC's own services. To find out how this applies to your property or business, talk to the MTC technical team.
