Free Tool
ITCMD Calculator: Estimate Your Inheritance Tax in Brazil
Calculate your estimated ITCMD liability based on estate value, state, and relationship to the deceased. Updated for the LC 227/2026 progressive rate reform.
Calculate Your Estimated ITCMD
Estimated ITCMD
Estate Value
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Effective Rate
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Estimated ITCMD
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Disclaimer: This calculator provides estimates only. Actual ITCMD may vary based on state-specific exemptions, deductions, the date of death, and the type of assets being transferred. Rates shown reflect approximate 2026 brackets following LC 227. Consult a qualified attorney for precise calculations.
How This Calculator Works
This calculator applies the approximate ITCMD rates for each Brazilian state as of 2026, incorporating changes mandated by Complementary Law 227/2026 (Lei Complementar 227). The reform requires all states to adopt progressive rate structures, replacing the previous flat rates that many states used.
Each state has autonomy to set its own rates within the constitutional ceiling of 8%. Some states, such as Sao Paulo, currently maintain a flat 4% rate but are in the process of implementing progressive brackets. Others, like Rio de Janeiro and Bahia, have already adopted progressive rates ranging from 4% to 8% depending on the estate value.
The calculator uses a simplified model that applies a blended effective rate based on the estate value and state selection. For states with progressive brackets (RJ, SC, RS, BA, DF), higher estate values result in higher effective rates. The relationship field is included for informational purposes, as some states offer reduced rates or exemptions for direct-line heirs.
Key factors not captured by this calculator include: state-specific exemption thresholds (many states exempt small estates below a certain value), deductions for debts and funeral expenses, special treatment of rural property, and ongoing legislative changes as states implement LC 227.
Frequently Asked Questions
What is ITCMD and who pays it?
ITCMD (Imposto sobre Transmissao Causa Mortis e Doacao) is Brazil's inheritance and gift tax. It is paid by the heir or donee on assets transferred through inheritance or donation. Each Brazilian state sets its own rate within the constitutional maximum of 8%. The tax applies to real property located in the state, movable assets where the probate is processed, and — following recent reforms — assets located abroad when the deceased was a Brazilian resident.
How did LC 227/2026 change ITCMD rates?
Complementary Law 227/2026 mandated that all states adopt progressive ITCMD rates — meaning higher rates for larger estates — instead of flat rates. States have a transition period to implement the new brackets, with most adopting rates ranging from 2% to 8% depending on estate value. The law also authorized states to charge ITCMD on foreign assets, resolving a long-standing constitutional dispute decided by the STF (Supreme Federal Tribunal).
Does ITCMD apply to foreign assets owned by a Brazilian resident?
Yes. Following the STF ruling and LC 227/2026, Brazilian states can now charge ITCMD on assets located abroad when the deceased was a Brazilian resident or the probate is processed in Brazil. This is a significant change that affects cross-border estate planning, particularly for expats and binational families with assets in multiple countries. Careful planning is essential to avoid double taxation, as Brazil has limited tax treaty coverage for inheritance taxes.
Plan Ahead, Save on Taxes
With proper estate planning, it may be possible to reduce your ITCMD liability through legal structures, timing strategies, and cross-border optimization. Talk to our team.
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