There are new developments regarding the Single Circulation Tax (IUC) starting next year, prompting the Government to issue a clarification on Thursday. What exactly will change? This article outlines the essential details.
1 – Single Payment Date
This is the main alteration to be aware of: starting in 2026, the IUC will be paid on a single date in February – or in two installments, if you choose that option, which will be discussed shortly.
This means if you paid the IUC in October, November, or even December, you will need to pay this tax again in February 2026. Essentially, you will pay the vehicle tax twice – albeit for different years – in a short period.
2 – Option to Pay in Two Installments
However, you should know that, if the amount payable is over 100 euros, you can settle the payment in two installments: one in February and another in October – similar to what occurs with property tax (IMI).
If you paid the IUC in October, November, or even December, you will need to pay this tax again in February 2026. Essentially, you will pay the vehicle tax twice – albeit for different years – in a short period. We explain everything.
Beatriz Vasconcelos | 10:09 – 06/11/2025
“In 2026, the IUC will be payable until the end of February whenever its amount is up to 100 euros. For higher amounts, the payment can be made in two installments, one in February and another in October,” DECO PROteste clarified.
Until the end of 2025, the rule remains that, after the first year of registration, the IUC must be paid annually by the last day of the vehicle’s registration month.
“For example, if you have a car with a registration from January 2007, you must pay the IUC by the end of January each year. From 2026, it is expected that the IUC will be payable by the end of February for all covered vehicles, whenever the amount does not exceed 100 euros. For IUC above 100 euros, the payment can be made in two installments, one by the end of February and another by the end of October,” the consumer protection organization explains.
3 – Will IUC Increase? Government Assures It Will Not
The Government rejected on Thursday any increase in the IUC, both for cars manufactured before 2007 and those manufactured afterwards, clarifying that the proposed change only relates to the timing of the tax payment and the option for installment payments.
“In light of false information circulating, particularly on social media, it is important to clarify that the Government will not increase the IUC [Single Circulation Tax] for vehicles manufactured before or after 2007,” a statement from the Ministry of Finance emphasizes.
The upcoming changes, included in the Fiscal Simplification Agenda presented on January 16 of this year and set to be discussed in the Assembly of the Republic, “only pertain to the timing of the tax payment and the introduction of the possibility for installment payments for amounts over 100 euros,” it explains.
