Higher IPTU: Faria Lima tops ranking of highest property tax values in São Paulo

Changes to legislation and the update of the General Property Value Map (PGV) help explain why CBD areas concentrate the highest property tax values per square meter.

IPTU values are set by the São Paulo city government | Ricardo Nunes, mayor of São Paulo

By: SiiLA News

01/08/2026

Some expenses are unavoidable, and one of them is the IPTU, Brazil’s municipal property tax (Urban Property and Land Tax). In São Paulo, tax bills are set to rise. The latest amendment established a maximum adjustment cap of 10% for properties, both commercial and residential.

Bill No. 1,130/2025, approved by the São Paulo City Council, changes the criteria used to calculate the IPTU. The proposal provides for an update of the General Property Value Map (Planta Genérica de Valores – PGV), combined with limits on annual tax increases and a revision of exemption and discount brackets.

Based on the type of building, property characteristics, owner profile, zoning rules and, above all, the General Property Value Map (PGV), the assessed value of a property is determined. This assessed value serves as the basis for calculating the IPTU.

The changes to the IPTU starting in 2026 aim to align taxation with the appreciation of real estate values in the city, while also introducing mechanisms to curb sharp year-over-year increases.

A new landscape

The creation of the Brazilian Real Estate Registry (Cadastro Imobiliário Brasileiro – CIB) also intersects with municipal taxation, particularly the IPTU. By bringing together, in a national system, information that is currently scattered across city governments, notary offices and other agencies, the registry is expected to improve the data base used by municipalities to levy the tax, reducing registration inconsistencies and strengthening oversight.

In practice, consolidating this information may allow for more accurate updates to the General Property Value Map (PGV) and help identify undervalued properties or those without proper registration, which could affect IPTU revenue. Although Brazil’s Federal Revenue Service states that the CIB does not create new taxes, data integration reinforces the registry’s role as an indirect tool supporting local tax policy.

Where is the IPTU most expensive?

Using data from SiiLA’s Market Analytics platform, based on Class A+, A and B office buildings in São Paulo, it is possible to rank the areas with the highest IPTU values per square meter.

The highest IPTU values in São Paulo are found in CBD areas. Faria Lima tops the ranking at R$19.88 per square meter, followed by JK at R$18.44 per square meter and Paulista at R$17.27 per square meter. For comparison purposes, the non-CBD area with the highest IPTU value is Moema, at R$13.73 per square meter. In the overall ranking, the area places eighth.

IPTU and market value

As a result, the areas with the highest IPTU values also tend to concentrate the highest market values for real estate. In Faria Lima, for example, in addition to having the most expensive IPTU, the region also posts the city’s highest price per square meter, at R$237.87.

However, the market value ranking does not exactly mirror the IPTU ranking. Berrini, for instance, has the third-highest IPTU in São Paulo, but ranks only tenth in terms of market value, at R$79.22 per square meter.

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