According to an episode of the podcast SD Explica by Seu Dinheiro, the rules for Brazil's ITCMD—the state inheritance and gift tax—will change starting in 2027 with the mandatory adoption of progressive tax rates. In practice, heirs and gift recipients could pay more, depending on the state and the size of the transferred estate.
Will inheritances become more expensive starting in 2027?
They could, but not necessarily for everyone. Seu Dinheiro uses conditional phrasing: the amount paid "could increase." The publication conditions this increase on two factors: the state where the tax is collected and the value of the assets passing from one person to another.
That caution matters. Anyone who read the headline and concluded that "every inheritance will become more expensive" went further than the publication actually stated. The change is mandatory, but the financial impact varies on a case-by-case basis.
The episode also aims to explain which jurisdictions will need to change their rules. This indicates that the shift will not affect the entire country in the same way, and that some states will have to make larger adjustments than others. To understand why the source uses the word "depends," it helps to examine what a progressive tax rate actually means.
What changes when tax rates become progressive?
A progressive tax rate increases as the value subject to taxation rises. Under a flat-rate system, the same percentage applies to both a small estate and a large one. With a progressive system, the larger the transferred amount, the higher the applicable percentage.
That is why Seu Dinheiro ties the outcome to the size of the estate. Those transferring smaller amounts tend to feel the change less. Those transferring large sums are most exposed to the effect of progressivity. This is simply the logic behind how the tax is designed, rather than a calculation by the publication, which did not disclose specific tax brackets or percentages in the episode summary.
These are the three ingredients cited by Seu Dinheiro. What the summary leaves out are the specific numbers for each, which is why this article must remain transparent about the limits of current knowledge.
What Seu Dinheiro did not disclose—and why it changes the math
The episode summary does not provide the tax rates, estate brackets, the list of states that will need to change their rules, or any potential transition guidelines. Without this data, no one can calculate the future tax on a specific inheritance, and this article will not invent those figures.
What the source does confirm is the essential context: the change takes effect in 2027, progressivity becomes mandatory, the impact depends on the state and the estate size, and the episode covers who will need to alter their rules and whether advancing a gift makes financial sense. The publication notes that the specific tax rates are available in the episode's supplementary material, but the text provided to us does not include them.
If you have significant wealth to pass on, the next step is to obtain these figures directly from your state tax authority. In the meantime, you can address the question everyone is asking: does making an early gift solve the problem?
Is it worth making gifts before 2027?
Seu Dinheiro devotes part of the episode to this question, but the summary does not reveal the conclusion. What can be stated without speculation is the structure of the decision: the tax applies to both inheritances and gifts, so gifting assets beforehand does not eliminate the tax; it merely brings it forward. The real question is whether the ITCMD paid today on the gift will be lower than the ITCMD that would be paid later on the inheritance.
- Arguments for gifting early: If your state's current rules tax your estate less than the upcoming progressive rule will, gifting assets sooner could be cheaper.
- Arguments for gifting early: The change is mandatory and, according to Seu Dinheiro, tax bills could rise, meaning the window of opportunity before 2027 is time-limited.
- Arguments against gifting early: Gifts are also taxed, meaning the cash outflow happens now rather than later.
- Arguments against gifting early: If your state needs to make few or no changes, or if the estate is relatively small, the potential savings could be minimal or nonexistent.
Gifting also means transferring the ownership of assets during your lifetime. That involves legal and administrative costs that do not appear on any tax rate table, which weigh on the decision just as heavily as the tax itself.
What does this mean for investors in FIIs, stocks, and fixed income?
ITCMD does not apply to the fund or the company itself; it applies to the person receiving the assets. The dividends from your holdings do not change because of it. What changes is the cost of passing the portfolio down to heirs. Real estate investment fund (FII) units, stocks, and fixed-income securities are all included in the transferred estate, and a larger portfolio pushes the tax base upward, where progressivity weighs more heavily. Another practical consideration is liquidity: the tax must be paid in cash, and heirs lacking liquid funds may be forced to sell assets to settle the bill.
Because the source does not detail how each asset class is valued for this purpose, there is no way to state here which asset category would end up cheaper or more expensive. It is best to take this question to the accountant or attorney who tracks your state's regulations.
Find out your state's current rules — Check which ITCMD rate applies to inheritances and gifts where you live and where the assets are located.
Monitor whether your state will amend its laws — The SD Explica episode discusses which jurisdictions will need to make changes; state legislation remains the definitive source.
Run the numbers for both scenarios before deciding — Compare the tax cost of gifting now versus a future inheritance with the help of a professional before the new rules take effect.