How we calculate
IPVA equals the assessed value times the rate. A cash discount, if entered, applies to that amount. Installments split the full amount evenly.
Formula used
IPVA = vehicle assessed value × state rate (%).
IPVA = valor venal do veículo × alíquota do estado
Practical example
A vehicle worth R$ 50,000 at a 4% rate generates R$ 2,000 in IPVA. With a 3% cash discount, the cash price would be R$ 1,940; split into 3 installments, each would be R$ 666.67.
How to interpret the result
Compare the cash discount against what you'd earn investing the money over the installment period.
Limitations
The rate and cash discount vary by state and vehicle type — confirm the exact figures with your state's tax authority before paying.