Toxoplasmosis in sheep is a disease of great importance in veterinary medicine, which causes economic losses in livestock and has a great impact on human health, since consumption of infected meat facilitates transmission of zoonotic infections. Blood samples from sheep (n = 360) were collected from 13 farm properties in the municipality of Lages, Santa Catarina, to estimate the prevalence of toxoplasmosis and identify risk factors associated with Toxoplasma gondii infection. T. gondii, antibodies were investigated by means of the indirect immunofluorescence assay (IFA) and enzyme-linked immunosorbent assay (ELISA). Animals infected with T. gondii were found on 100% of the farms. IFA detected 56.9% (205/360) and ELISA 42.5% of the infected sheep. Breed was the only risk factor associated with the presence of T. gondii antibodies. ELISA showed sensitivity of 61%, specificity of 82% and kappa of 0.41, which was considered moderate. This allows use of ELISA as an alternative technique for diagnosing T. gondii in sheep.