Did the city hall overcharge your ITBI? You can recover the difference.
Yes, you can. ITBI — the municipal tax you pay to transfer a property — is levied on the actual purchase price, not on a "reference value" the city hall sets through its own system. Anyone who paid the tax on an inflated base has the right to claim a refund of the difference, and the courts have been recognizing it. In August 2026, for instance, Rio de Janeiro's 1st Appellate Tax Panel upheld a ruling ordering the City of Rio to refund ITBI overcharged from an apartment buyer — the decision, according to Valor Econômico (08/17/2026), "honors STJ Theme 1,113", under which the tax must be levied on "the negotiated value", not on the "assessment made by the municipality's system".
If your ITBI slip came in higher than the price you actually paid for the property, this article explains why that is contestable and what to do about it.
What does the law say about the ITBI tax base?
The ITBI tax base is the transaction value — the price actually paid in the sale. That is what the Superior Court of Justice (STJ) established in February 2022, when it decided Theme 1,113 of the repetitive appeals (a ruling that lower courts are bound to follow). In short, "ITBI is levied on the value of the legal transaction actually carried out — that is, the price paid for the property", as the legal outlet JOTA summarized (05/09/2026).
Three points follow from that decision:
- The ITBI base is not the IPTU base. The assessed value used for IPTU (property tax) and the market value of the transaction are different things, with different criteria — the city cannot simply carry one over to the other.
- The value declared by the buyer is presumed true. Whoever declares the purchase price starts from a presumption of good faith; it is up to the tax authority to prove otherwise, not up to the taxpayer to prove they did not lie.
- The municipality cannot set the base unilaterally. To reject the declared value, the city must open a proper administrative proceeding in which the buyer is heard and can contest it. Charging on a "reference value" table set by decree, without that proceeding, contradicts the STJ ruling.
Keep in mind that ITBI is a condition for registration: the Real Estate Registry will not transfer the property into your name without the paid slip. That is the difference between the deed, ITBI and registration that we detail in Deed, registration and ITBI: what's the difference? — and it is why an arbitrated slip stalls the entire purchase.
Why do so many city halls charge on a "reference value"?
Because revenue depends on it — and a recent law gave the practice new momentum. Complementary Law 227/2026 amended article 38 of the National Tax Code to allow municipalities to set, by local law, a "reference value" as the ITBI base. According to JOTA (05/09/2026), the change "directly contradicts the consolidated understanding" of the STJ.
Two details matter for anyone buying right now:
- The rule only takes effect in 2027, and only in municipalities that enact a local law during 2026. In other words, nothing changed automatically in 2026: Theme 1,113 still governs.
- The Judiciary is pushing back. As early as March 2026, São Paulo's 16th Public Treasury Court ruled in the taxpayer's favor against the arbitrated charge. The courts read the new law as not giving cities "carte blanche" to ignore the transaction value without a proceeding in which the buyer is heard.
In practice, it is common for a buyer to plan their finances around the purchase price and then be surprised, when the slip is issued, by a higher value calculated by the city's system. That surprise is exactly what the STJ decision allows you to contest.
Transaction value vs. arbitrated value: which one counts?
| Transaction value | Reference value (arbitrated) | |
|---|---|---|
| What it is | The price actually paid in the purchase | An estimate from the city hall's system |
| Who sets it | The parties, in the contract/deed | The municipality, by decree or table |
| What the STJ says | It is the ITBI base (Theme 1,113) | Only set aside via a proper proceeding |
| Presumption | Good faith, in the buyer's favor | Must be justified by the tax authority |
| If overcharged | — | You can claim the difference back |
How to claim back the ITBI you overpaid?
The path depends on whether you have already paid the slip. In broad strokes:
- Gather proof of the real value. The sale contract, the deed and payment receipts show the price actually paid — the base the STJ requires.
- Compare it with the slip's base. If the ITBI slip was calculated on a value higher than the purchase price, there is a difference to dispute.
- Haven't paid yet? You can request an administrative review of the slip with the city hall before paying, presenting the transaction value.
- Already overpaid? You can file for a refund (administratively, with the municipality) or a judicial action to recover the difference — the general deadline to claim back a wrongly paid tax is five years. A tax lawyer can assess the specific case and the fastest route.
Because this is money that changes the math of the purchase, it is worth factoring in these costs from the start — a topic we cover in How much it costs to buy a property beyond the price.
What this means for developers and buyers
For the buyer, the message is direct: the ITBI slip is not beyond question. If it came in on a value you did not pay, there is a solid legal basis — a binding STJ decision — to contest it and recover the difference.
For the developer, this is a matter of cash flow and experience. At handover, an ITBI slip arbitrated above the unit's price delays payment, stalls registration and turns into a customer complaint after the sale. Settling the tax-base question early — before the slip blocks the transfer — is what keeps the journey moving all the way to the registry entry, the only act that actually makes the buyer the owner, as we explain in I bought a property and didn't register it. Is it mine?.
Where Conecta comes in
Conecta is the digital concierge and real estate expediter that orchestrates financing, deed, ITBI and registration end to end. In practice, that includes checking the ITBI slip's tax base before it becomes a problem: paying the tax on the right value, keeping an overcharge from delaying registration and, when needed, handling the review or refund request. And here Conecta is not on its own: the legal side of an overpaid tax is handled in partnership with Nejm Lara Resende, a law firm specialized in real estate law — from the administrative request with the city hall to the judicial recovery action, when the case calls for it.
"The ITBI slip is not the final word. Anyone who paid the tax on a value higher than what they actually paid for the property has the right, recognized by the STJ, to recover the difference, and they don't have to face it alone. At Conecta, in partnership with Nejm Lara Resende, we identify the improper charge and handle the refund request."
— Vitória Nejm, a real estate law specialist, founding partner of Nejm Lara Resende, and CEO of Conecta
For the developer, it is the handover that does not stall at the slip; for the buyer, it is the assurance of not paying tax on a value that never existed. Stuck with an ITBI slip above the purchase price? Talk to Conecta.
Frequently asked questions
On what value should ITBI be calculated?
On the transaction value — the price actually paid for the property. That is what the STJ established in Theme 1,113 (February 2022): the ITBI base is the value of the transaction carried out, not the IPTU assessed value nor a reference table set unilaterally by the city hall.
Can the city hall charge on its own reference value?
Only in specific situations and with due process. Complementary Law 227/2026 began to allow municipalities to set a "reference value" by local law, but that takes effect from 2027 and only where a municipal law exists. Even then, the STJ requires that the declared value be set aside only through a proper administrative proceeding in which the buyer is heard — and the courts have been blocking automatic arbitration.
I already overpaid the ITBI. Can I still recover it?
Yes. You can file for an administrative refund with the municipality or a judicial action to recover the wrongly paid amount. The general deadline to claim back a wrongly paid tax is five years. Keep the contract, the deed and the payment receipt to prove the real transaction value.
Do I need a lawyer to claim the refund?
For the administrative request with the city hall, not always. For the judicial recovery action, yes. A tax lawyer weighs the amount involved, the chances of success and which route — administrative or judicial — is faster in your municipality.
Does ITBI delay the property registration?
It can. The Real Estate Registry will not register the transfer without the paid ITBI slip, so an arbitrated, contested charge stalls the transfer until the matter is resolved. That is why it is worth checking the tax base before paying.