Only two hybrid vehicles will be exempt from the criteria defined by the São Paulo government.
Ordinance SRE 94/2024 regulates the vehicle tax waiver with electric motors with a minimum power of 40 kW (around 54 horsepower) and powered by a minimum voltage system of 150 volts. The value of the vehicle also cannot be greater than R$250 thousand.
In practice, it will only benefit owners of Toyota Corolla Hybrid and Toyota Corolla Cross Hybrid, the only ones on the market that meet the requirements of the measure published by the Secretariat of Finance and Planning (Sefaz-SP).
The tax benefit is not permanent, being valid only until December 31, 2026. After two years, the IPVA rate will be gradually increased: 1% in 2027, 2% in 2028, 3% in 2029 and 4% (common rate ) from 2030.
The proposal does not include the benefit for 100% electric cars. Hydrogen-powered vehicles are not yet on sale in Brazil.
According to the Secretariat of Finance and Planning (Sefaz-SP), the state has 28 thousand vehicles eligible for the benefit, a tax waiver of R$ 163 million in 2025. The estimate is that this number will be increased by approximately 10 thousand vehicles next year and the waiver for R$206 million.
BYD “exempts” IPVA from customers
Days after the publication of the ordinance, BYD announced that it will offer free IPVA for the entire line of hybrid passenger vehicles. The Chinese brand’s models do not meet the São Paulo Government criteria.
According to the company, more than 76 thousand cars from the brand were sold.
