How much would cars cost without taxes in Brazil?

RIO DE JANEIRO, BRAZIL – A survey conducted by BDO Consulting disclosed how much taxes consumers pay when buying a brand new car. The tax burden in Brazil can represent up to 43% of the vehicle’s value.

According to the data, a vehicle with up to 1 liter engine (1.0) may have 36.53% of its final price made up by taxes. For cars between 1.0 and 2.0 liters, this figure reaches 43.13%.

The BDO study was conducted in early 2021, therefore, even before the São Paulo state government established an increase of the ICMS (tax on goods and services) charged on the sale of cars in the state.

Below is how much some of the best-selling cars in Brazil would cost if the taxes were eliminated. Pickups and SUVs were left out of the list, because they have a different tax regime:

Chevrolet Onix

Current price of the basic model: R$61.090

Tax-free value: R$38.773

Hyundai HB20

Current price of the basic model: R$52,290

Tax-free value: R$33,188

Chevrolet Onix Plus

Current price of the basic model: R$ 66,520

Tax-free value: R$42,220

Jeep Renegade

Current price of the basic model: R$83,990

Tax-free value: R$47,765

Volkswagen Gol

Current price of the basic model: R$56,190

Tax-free value: R$35,663

Volkswagen T-Cross

Current price of the basic model: R$99,070

Tax-free value: R$62,879

Jeep Compass

Current price of the basic model: R$133,990

Tax-free value: R$75,858

Fiat Argo

Current price of the basic model: R$56,590

Tax-free value: R$35,917

Fiat Mobi

Current price of the basic model: R$40,990

Tax-free value: R$26,016

Chevrolet Tracker

Current price of the basic model: R$92,850

Tax-free value: R$58,931

Hyundai Creta

Current price of the basic model: R$78,990

Tax-free value: R$44,921

Renault Kwid

Current price of the basic model: R$39,390

Tax-free value: R$25,000

Volkswagen Nivus

Current price of the basic model: R$92,440

Tax-free value: R$58,671