On Wednesday night (28), the Federal Revenue denied the information that all owners who rent properties on a seasonal basis will start paying a new tax from 2026. According to the agency, the statement is false and generalizes tax reform rules that do not apply to the majority of individuals.
The change in rental taxation is foreseen in Complementary Law (LC) 214/2025which creates the new consumption tax system, the Tax on Goods and Services (IBS) and the Contribution on Goods and Services (CBS), in the dual Value Added Tax (VAT) model.
According to the Revenue, the LC 227/2026sanctioned two weeks ago and which concludes the regulation of the tax reform, does not deal with the immediate collection of taxes on rentals, as was announced.
According to the approved rules, seasonal rentals, with contracts of up to 90 days, can only be equated to hotels when the lessor is a regular IBS/CBS taxpayer. In the case of individuals, this only occurs if two criteria are met simultaneously: owning more than three rented properties and having annual rental income exceeding R$240,000, a value that will be adjusted annually by the Broad National Consumer Price Index (IPCA).
Those who do not meet these criteria will continue to be subject only to Personal Income Tax (IRPF), without the new taxes on consumption. The IRS states that the rule was designed precisely to avoid taxation of small landowners and reduce the risk of undue charges.
Transition
Another highlighted point is that the reform provides for a transition period. Although 2026 marks the beginning of the new systemthe effective and full collection of IBS and CBS will be staggered from 2027 to 2033. Therefore, the financial effects will not be immediate for all taxpayers.
In the case of traditional residential rentals, the IBS/CBS burden will be reduced by 70%, resulting in an effective rate estimated at 8%, in addition to IR. In seasonal rentals equivalent to accommodation, the benefit is smaller, but, according to the Revenue, it does not reach the high percentages that have been announced.
For large owners, those with many properties and high income, taxation will also be alleviated by mechanisms such as a reduced rate, charging only on values above R$600 per property, the possibility of deducting maintenance and renovation costs, in addition to cashback (tax refund) for low-income tenants.
Adjustments
The Revenue also highlights that subsequent adjustments to the original law brought more legal certainty, reducing the chances of being classified as a taxpayer and making the rules more favorable to individuals who rent properties on a seasonal basis.
LC 227/2026, clarified the Tax Authority, favored individuals who rent properties, reducing the chances in which they are classified as CBS and IBS taxpayers. The complementary law also made the application of the social reduction for low-income taxpayers clearer, specifying that the benefit will be applied monthly and will not reduce rights.
According to the Tax Authorities, the reform seeks to simplify the system, reduce distortions and reduce the burden on lower-value rentals. “The idea of a general increase in taxes or rents is not supported by the data or the approved legislation”, highlights the note.
