What is predial
Predial is Mexico's annual municipal property tax (impuesto predial). Every property owner — Mexican or foreign — pays it annually to the municipality where the property is located. The tax is calculated as a percentage of the cadastral value (valor catastral, not market value) and rates vary by entity and municipality.
Key facts
- Range: 0.05% to 2.5% of cadastral value annually
- Paid: annually in January (for early-payment discount) or up to March without surcharge
- Calculated on: cadastral value, which is typically 30-50% of market value
- Effective rate on market value: usually 0.03%-1.0% of market value (very low globally)
- Early-payment discount: 8-20% if paid in January depending on municipality
Predial rates by state (key markets for foreign buyers, 2026)
| State | Rate range | Annual on $1.5M MXN cadastral value |
|---|---|---|
| Mexico City | 0.05% – 0.40% | $1,500 – $2,200 MXN ($90-$130 USD) |
| Quintana Roo (Cancún/Tulum) | 0.30% – 0.45% | $4,500 – $6,750 MXN ($265-$397 USD) |
| Baja California Sur (Cabo) | 0.20% – 0.45% | $3,000 – $6,750 MXN ($176-$397 USD) |
| Jalisco (PV, Guadalajara) | 0.18% – 0.32% | $2,700 – $4,800 MXN ($159-$282 USD) |
| Yucatán (Mérida) | 0.15% – 0.30% | $2,250 – $4,500 MXN ($132-$265 USD) |
| Nayarit (Sayulita, Punta Mita) | 0.20% – 0.40% | $3,000 – $6,000 MXN ($176-$353 USD) |
| Guerrero (Acapulco) | 0.20% – 0.35% | $3,000 – $5,250 MXN ($176-$308 USD) |
Why Mexican property tax is so low compared to US/Canada
Three structural reasons:
- Cadastral vs market value: Mexico taxes on a value typically 30-50% of market price.
- Lower rates: Most Mexican municipal rates are 0.1-0.4%; US averages 0.9-2.3% on assessed value.
- Federal transfers: Mexican municipalities receive most operating funds from federal transfers.
Practical result: a comparable home that pays $8,000-$12,000 USD annually in US property tax pays $200-$800 USD annually in Mexican predial.
How to pay predial as a foreign owner
Online (preferred)
Each municipality has a portal. You need your cuenta predial (account number, 8-12 digits, on your deed). Major portals: finanzas.cdmx.gob.mx, tulum.gob.mx/predial, cancun.gob.mx/tesoreria, solidaridad.gob.mx/tesoreria, loscabos.gob.mx/predial, puertovallarta.gob.mx/tesoreria/predial.
Most portals accept international credit cards (Visa/Mastercard) and bank transfers.
Bank counter
Print your predial slip from the portal and pay at any major Mexican bank counter. Small bank commission applies.
Through property manager
If you have a property manager, predial is typically included in their services.
Discounts available to foreign owners
- Early-payment (January): 8-20% depending on municipality
- Seniors (65+): 30-50% in many municipalities
- Persons with disability: 30-50% with medical certification
- Widows/widowers: 25-50% in some municipalities
These are NOT applied automatically. Visit the local tesorería with documentation to claim them.
Why current predial matters when buying
- The notario requires "constancia de no adeudo de predial" at closing
- If the property has unpaid predial from prior years, that debt transfers to you
- You cannot sell or transfer the property until predial is current
- Late predial accrues surcharges of 1.5-2.5% monthly plus inflation adjustment