See the schedule for payment of IPTU in São Paulo in 2022

The City Hall of São Paulo released, on Tuesday (4), the calendar for the payment of the Urban Property and Land Tax (IPTU).

Property owners can choose to pay in up to 10 installments or pay the tax in cash. In this last option, the tax has a 3% discount.

According to the city, taxpayers will initially receive notification of tax assessment with the option to pay in cash or the first installment. For those who choose to pay in installments, a single form will be sent containing all payment slips for future installments, which can be paid monthly, according to the due date of each installment.

Residents will be able to consult the IPTU expiration dates in the notice. For all properties, the maturity of the first installment or the deadline for payment in cash of the tax occurs in February.

But payments can start to be made from January 15th, through the 2nd copy of the bank slip issued on the internet.

The City of São Paulo informs the expiration date will be:

• on the day chosen for taxpayers who made an option via registration update
• on the 9th or the 14th, for taxpayers who did not choose a due date
• on the 20th, for taxpayers who opted for notification by Property Administrators, with the first installment due in March.

It is noteworthy that maturities on days when there is no banking day will be extended to the first following business day, without any additional charge.

Pay in cash or in installments?

Take advantage of the cash discount or use the installment payment? Economists heard by CNN Brasil Business claim that the scenario is conducive to paying the tax in installments, even for those who have a financial reserve to pay in cash.

“The IPTU is using a rate of around 8.5% per year, which would be 0.68% per month. So, if the person has an investment that earns more than 0.68% per month, it is not worth paying upfront, but keeping the money invested and in installments”, said Josilmar Cordenonssi, professor of economics at Universidade Presbiteriana Mackenzie.

The professor cites Selic as an example as a basis for the application. The basic interest rate is currently at 9.25% and, therefore, it is a better option to let the money pay off while paying the IPTU.

“If you leave money in the Selic Treasury, it will yield more than the 8.5% interest rate on the IPTU. It’s better to split if you have money or not, in this case. After paying the installments, there will still be some money left over in the end”, said the professor.

Patrícia Palomo, a specialist in financial education and a partner at Sonata Gestão de Patrimônio, also says that the best option for the taxpayer is the payment in installments, unlike what happens with the IPVA.

“For those who have funds in their account or in conservative investments with daily liquidity, it is worth paying the IPVA in cash. But in the case of IPTU, there are investment options that offer more interesting remuneration in the period”, he said.