Brazil's Supreme Court sets 12 August 2026 as start date for ban on larger IPTU rates based on property size

According to Portas (Notícias), the Supreme Federal Court (STF) has defined when its ban on municipal IPTU (urban property and land tax) rates based on a property's area takes effect: 12 August 2026, the date the minutes of the judgment that set the thesis were published. The decision was unanimous, made in a virtual session that ended on 9 October, while judging motions for clarification (embargos de declaração) in ARE 1,593,784. Charges and payments made before 12 August were preserved, as were administrative proceedings and court cases still pending. The underlying ruling came in a virtual session that ended on 5 August (Theme 1,455, with general repercussion, so it should guide similar cases nationwide). The court held that municipal laws issued after Constitutional Amendment 29/2000 cannot set IPTU rates based on a property's area. The case concerned a law in Chapecó (Santa Catarina) that charged 1% on properties with 400 m² or more of built area and 0.5% on smaller ones. The state court of Santa Catarina declared the rule unconstitutional, and the STF upheld that. The justices reaffirmed that progressive IPTU rates must consider the property's assessed (market-based) value, not just built area; the Constitution also allows different rates by location and use. The STF limited the temporal effect of the ruling because of the financial impact on municipalities. Chapecó estimated refunds at roughly R$ 14 million, and the association of capital-city finance departments, Abrasf, warned that refunds could affect health, education and security spending. The earlier understanding itself was not changed. Portas notes that the decision does not mean automatic refunds for every owner who paid IPTU calculated by area: the outcome depends on each charge and on whether administrative or court proceedings are still pending. Owners can check municipal legislation for the criteria used to calculate the tax.