The Buenos Aires City Government Revenue Administration (AGIP) has suspended the current issuance of Motor Vehicle Tax patents and will completely recalculate installments 1, 2, 3, and the annual installment for 2026. This is to apply a cap equivalent to the accumulated inflation of 2025 (IPCBA 31.8%). This measure means the current issuance on the web and in home banking is deactivated, and no direct debits will be made. Therefore, taxpayers should disregard previous bills and wait for the new issuance, according to Argentine News Agency. The City Government, led by Jorge Macri, presented the bill to the Legislature today to ratify the established cap. This decision effectively reverses the collection of the Motor Vehicle Tax bills for 2026, which featured significant real increases due to the revaluation of some models compared to 2025, which inevitably affected the tax base of at least 16% of the registry. In the budget sent to the Buenos Aires Province Legislature, Axel Kicillof reduced real rates. Thus, 9 out of every 10 cars registered in the Autonomous City of Buenos Aires (CABA) are taxed between 1.6% and 3.5% of the vehicle's value, while in the Province, rates range from 1% to 4.5%. Revalued Assessment The Motor Vehicle Tax collected by the City of Buenos Aires (CABA) is based on a progressive rate on the fiscal value of the vehicle, with values ranging from 1.6% to 5% (or more, depending on the case). Vehicles are grouped into value scales, where higher fiscal values pay a higher percentage, divided into 6 bimonthly installments. Hybrid vehicles will be exempt for a two-year period, and after this initial period, they will receive gradual reductions in the vehicle tax. Bills on the Web The new, recalculated CABA bills will be available on the AGIP website on February 18 and in home banking on February 20. The issuance will be exclusively digital to provide a faster response. Those who need assistance to consult or download the bills can contact through: https://autogestion.agip.gob.ar/cuit/infoagip. The first installment and the annual payment can be made by February 27 without losing the benefit for on-time payment or the good taxpayer discount. The same date applies to all terminations and modalities. Assessment Updates The recalculation will limit the increases in the tax due to assessment updates, ensuring that no increase exceeds the 2025 accumulated inflation measured by the IPCBA (31.8%). The entire bill for the first issuance (installments 1, 2, 3, and the advance annual installment) will be recalculated, and new amounts to be paid will be issued. Those who have already paid should ignore the new recalculated bill and not need to take any further action. If the recalculation determines that the amount paid in the installment exceeds the established cap, the excess will be registered as a credit and will be automatically applied to the next installment. If the annual installment was paid, the resulting favorable difference will be available for the taxpayer to request a refund or to be applied to future due dates.
Buenos Aires City Government Recalculates Vehicle Tax with Inflation Cap
The Buenos Aires City Government has suspended the issuance of vehicle tax bills and will recalculate 2026 payments. Taxpayers should disregard previous notices. New amounts will be capped at the 2025 inflation rate.