Guide · Buying

ITBI tax base: price, valor venal and reference value

On what amount the ITBI is charged in Brazil: the 2026 change to the National Tax Code, how cities use a reference value, and how to contest it.

Checked on against the official sources at the bottom of the page.

In short

The ITBI is charged on a tax base, and in Brazil that base is not always the price written in the deed. Since Complementary Law 227 of 13 January 2026 rewrote art. 38 of the National Tax Code, the base is the valor venal, defined as the amount for which the property “seria negociado à vista, em condições normais de mercado” (would be sold for cash in normal market conditions), estimated by the city by technical criteria and contestable by the taxpayer. Many cities already used a published valor de referência (reference value) as a floor. How the new text fits with earlier case law, including a Superior Court of Justice thesis on ITBI that Payotte could not read, is unsettled.

The 2026 rule in the National Tax Code

The text read on the Câmara dos Deputados consolidation of LC 227/2026 (art. 165, which amends the National Tax Code) gives the following in paragraphs 1 to 4 of art. 38:

  • § 1: the valor venal is the value at which the property or right “seria negociado à vista, em condições normais de mercado”.
  • § 2: that value “será estimado por meio de critérios técnicos”, considering at least one of four elements: an analysis of prices practised in the real estate market; information supplied by notaries, registries and financial agents; location, type, use, standard and area of land and building; or other technical parameters usually used in appraisal.
  • § 3: city and Federal District tax administrations “deverão divulgar os critérios utilizados” (must publish the criteria they use), and the value “poderá ser contestado pelo contribuinte mediante a apresentação de avaliação contraditória em procedimento específico, nos termos da legislação específica municipal” (may be contested by the taxpayer by filing a contrary valuation in a specific procedure under municipal law).
  • § 4: notaries and registries must share their property transactions with city tax administrations, under a penalty set by municipal law.

The law’s art. 182 says it takes effect on publication, with later dates only for provisions other than art. 165 (for example art. 169, from 1 January 2027). Payotte did not record the exact date of publication in the Diário Oficial da União. One further point: art. 35-A of the Code, in the text read, is marked “(VETADO)” (vetoed), so it has no content.

Two consequences follow from the wording. First, the federal rule is about a market value estimated by the city, not about the price you declare. Second, it gives you a defined way to disagree, a contrary valuation, but the procedure itself is set by each city.

What this does not settle

Before 2026, the base of the ITBI was disputed in the courts, and the Superior Court of Justice (STJ) dealt with it in a repetitive-appeal theme numbered Tema 1113. Payotte could not read that thesis: the STJ website returned an access error (HTTP 403) and the error was not bypassed. This guide therefore does not state what the thesis says. What can be said is limited to the two texts that were read: the 2026 federal text puts a city-estimated market value in the Tax Code; and none of the city laws read for this guide mention the STJ thesis. Whether the new article overrides, confirms or narrows earlier case law is a question for a lawyer, and courts may still have to decide.

How the cities read use the base

The wording in the city laws and pages varies, and some of it predates 2026. As read:

CityBase as read
São PauloThe greater of the transaction value and the reference market value (valor venal de referência); the statute (Lei 11.154/1991, art. 7) defines the valor venal as the cash value in normal market conditions.
FortalezaThe highest of the administration’s market value, the declared value and the IPTU value; never below the declared value (city page; law text not read).
ItajaíThe higher of the value agreed in the deal and the venal value assigned (art. 52); the text read is a consolidation whose latest amendment listed is from 2018, so it may be out of date.
MacapáThe higher of the deal value and the value in the city’s generic value plan (2023 consolidation).
Porto VelhoThe highest of market appraisal, cadastral value, declared value and price list; never below the venal value.
SalvadorCash value in normal market conditions; the declared value can be contested only after an administrative process.
Belo HorizonteThe declared value is presumed true until an administrative process sets it aside.
São José dos CamposThe value declared by the taxpayer as the cash price; the city may arbitrate if it differs. The city’s web page cites an older law and a “higher of” rule, which contradicts the 2025 law in force from 1 January 2026; to confirm.
JoinvilleThe declared value, arbitrated if it differs with a right of defence; for bank-financed purchases, the value in the loan contract.
RecifeThe cash value in normal market conditions, declared by the buyer; the city may appraise.

Where a city code lists a floor, it can be the value in the city’s property register used for the IPTU (Santos, Ribeirão Preto and Fortaleza say so in the texts read). See the IPTU guide for how that register is built.

What to do if the city’s value is higher than your price

  1. Ask for the criteria. Under § 3 the city must publish how it estimates the valor venal; ask the finance office which criteria and which value apply to your property.
  2. Compare with the deal. Put the city’s figure next to your contract price and the criteria the city gave you.
  3. Contest with a contrary valuation. The Tax Code names this route; the city law sets the form, the deadline and who can sign the report. Ask before paying, because several cities require payment before the deed (see the ITBI guide).

Do not understate the price on the deed to reduce the tax: under § 4 notaries and registries must share their transaction data with the city, so the city sees what is recorded.

What it costs

The tax equals the rate times the base. A difference between your price and the city’s value is multiplied by the rate; the rates read are in the ITBI guide. The notary and registry fees are also calculated on a value that can be the higher of the declared price and the tax value in several states; see notary and registry fees.

Which professional to consult

A property appraiser (see the appraiser page) produces the contrary valuation. A lawyer registered with the OAB files the contest.

Frequently asked questions

Is the ITBI charged on the price in my deed?

Not necessarily. Several cities read charge on the higher of the price and their own value; others start from the declared value and let the city arbitrate.

What does LC 227/2026 change?

It states in the National Tax Code that the base is the market cash value estimated by the city, that the city must publish its criteria, and that the taxpayer may contest with a contrary valuation.

Does the STJ thesis still apply?

Payotte could not read it, so it does not say. How the 2026 text fits with earlier case law is unsettled; ask a lawyer.

Can I contest the value?

Yes, by a contrary valuation in the procedure provided by municipal law (CTN art. 38, § 3). Each city sets the procedure.

More guides on buying

Sources

All guides · Payotte Brazil