Property Taxes in Mexico: Predial Guide 2026

What property taxes does a buyer pay in Mexico?

Property taxes in Mexico apply to all real estate owners, whether Mexican nationals or foreign buyers. The three main property-related taxes are the annual municipal property tax (impuesto predial or predial), the one-time acquisition tax (ISAI) paid at purchase, and capital gains tax when selling.

The predial is based on Article 31, fraction IV, of the Mexican Constitution, which establishes the obligation of all persons to contribute to public expenses proportionally and equitably, and Article 115, which grants municipalities the authority to propose rates and tariffs for property taxes. The predial is a mandatory municipal charge that applies to all owners of real estate in Mexico.

Article 115 of the Mexican Constitution establishes that municipalities have the authority to administer their finances freely and collect the predial, and each municipality sets its own rates, cadastral values, and deadlines.

How much is the annual property tax (predial) in Mexico?

The predial is calculated based on the cadastral value (valor catastral) of the property, which is an estimate made by the municipal government and does not necessarily match market value. The cadastral value is typically 30 to 60 percent of market value in most Mexican municipalities.

Predial rates vary by municipality. In Quintana Roo, the rates for the major coastal municipalities in November 2026 are:

The formula is: cadastral value × municipal rate = annual predial. For example, a property with a cadastral value of MXN 2,000,000 in Solidaridad would pay MXN 3,800 per year (2,000,000 × 0.0019 = 3,800).

When is the predial due and what discounts are available?

The predial is paid during the first months of the year. Most municipalities offer early-payment discounts. In Benito Juárez (Cancún) for 2026, the approved discounts are 15 percent from January 7 to 21, 10 percent from January 22 to February 15, and 5 percent from February 16 to March 15.

Seniors, retirees, people with disabilities, and INAPAM cardholders receive a 50 percent discount year-round upon meeting specific requirements.

What is the acquisition tax (ISAI) and how much is it?

The Property Acquisition Tax (ISAI) is a required tax for homebuyers in Mexico, and ISAI rates vary by state and are calculated based on the property's assessed value, which is usually lower than the listing price.

ISAI rates in Quintana Roo municipalities as of November 2026:

The ISAI is paid once at closing through the notario público who handles the transaction. The notario collects the tax and remits it to the municipality on behalf of the buyer.

How are rental income and capital gains taxed in Mexico?

Rental income tax for non-resident owners

Non-resident foreign owners who earn rental income from Mexican property are subject to a 25 percent withholding tax on gross rental income under Article 158 of the Income Tax Law. If the owner is a non-resident, the ISR (Impuesto Sobre la Renta) on rental income is 25 percent of gross rent collected, and tenants or intermediaries are legally obligated under Articles 153 and 154 of Mexico's Income Tax Law to withhold 25 percent before paying the owner.

The non-resident owner may instead elect to pay 35 percent on net rental income (income minus allowable deductions) rather than 25 percent on gross. This election requires appointing a Mexican legal representative and filing with SAT.

Resident owners file monthly and may deduct property management fees, maintenance, insurance, property tax, mortgage interest, and depreciation. IVA (value-added tax) of 16 percent applies to furnished rentals and vacation rentals.

Capital gains tax when selling property

Non-resident sellers pay capital gains tax (ISR) on real estate sales in Mexico. The default rule is a 25 percent withholding on the gross sales price with no deductions. Alternatively, the seller may elect to pay 35 percent on net gain (gross sales price minus purchase cost, improvements, and allowable expenses).

Resident owners who sell their primary residence may exclude capital gains on sales up to approximately MXN 5.8 to 6.2 million (700,000 UDIS indexed for inflation) as of 2026. The notario público calculates the tax, withholds the amount, and remits it directly to SAT at closing.

How does the cadastral value differ from market value?

Many municipalities in Mexico use a property's assessed (cadastral) value as the basis for taxes, and the official assessment can be much lower than the property's market value — in some cases, as low as 30 percent or 40 percent of the actual sales price. The municipality determines cadastral value based on location, land area, construction area, property type, and age of improvements.

The cadastral value appears on the cédula catastral (cadastral certificate) issued by the municipal catastro (cadastral office). Municipalities update cadastral values periodically, and owners may challenge a valuation through an administrative process.

What happens if the predial is not paid?

Failure to pay the predial results in late fees (recargos) and penalties (multas). The municipal tax law sets monthly interest rates on unpaid balances. In many Quintana Roo municipalities, over five years of unpaid predial debt may be subject to prescription (statute of limitations), allowing the owner to pay only the most recent five years.

The municipal treasurer may refuse to issue a no-debt certificate (certificado de no adeudo), which is required for most property sales and transfers. Failure to pay property tax on time leads to financial penalties and surcharges, and persistent non-payment can negatively affect the property's legal standing.

Are property taxes in Mexico lower than in the United States and Canada?

Mexico's property taxes are usually lower than those charged in the US, depending on the state or municipality; in the US, tax rates can reach as much as 2 percent of a property's assessed market value, while in Mexico an owner may pay as little as 0.05 percent of the property's cadastral value.

For a USD 500,000 property in Quintana Roo, the annual predial typically ranges from USD 200 to USD 1,500, depending on the municipality and the ratio of cadastral value to market value. The same property in California or New York might generate USD 5,000 to USD 10,000 in annual property tax.

How is the predial paid?

Property owners pay the predial at municipal treasury offices (tesorería municipal), through online portals, or at authorized payment centers and banks. Most municipalities accept payment by cash, debit card, or credit card.

To pay online, the owner needs the clave catastral (cadastral key) or número de padrón (registry number) printed on the previous year's receipt or available from the catastro office. Online portals allow the owner to view the current balance, print a payment receipt, and confirm that prior years are paid.

Where to pay predial in Quintana Roo municipalities

• Benito Juárez (Cancún): cancun-digital.mx (online) or municipal treasury offices and authorized kiosks throughout the city.
• Solidaridad (Playa del Carmen): playadelcarmen.gob.mx (predial section) or the Palacio Municipal.
• Tulum: Municipal treasury at Tulum city offices.
• Cozumel: Municipal treasury or online through the municipal website.

Does a foreign buyer pay the same predial rate as a Mexican national?

Yes. The predial applies equally to all property owners regardless of nationality. Foreign buyers in the restricted zone (within 100 kilometers of an international border or 50 kilometers of the coast) hold property through a bank trust (fideicomiso), but the predial obligation and rate are identical. The no-debt certificate issued by the municipal treasury is the official proof.

Review current listings and compare predial obligations across municipalities on Riviera Maya condos, Riviera Maya houses, and Riviera Maya land. For rental-investment properties, see Airbnb investment Riviera Maya for yield projections and tax obligations.

Owners planning to rent their property should consult Short-term rentals in Mexico for registration and lodging-tax requirements. Foreign buyers unfamiliar with the fideicomiso structure should read Property law and taxes in Mexico.