How much will I pay in real estate or property tax in Mexico?
Oscar Hererra - SimplePay
Property taxes in Mexico are nothing compared to the amount you pay in the States. The low amount of property taxes in Mexico is one of the biggest advantages of purchasing in Mexico. If I am not incorrect, I think the cost for property tax in California is about 1.5% of the value of the property, so for the average home in California, which could be maybe $600,000 to $700,000 (an average home that is nothing too small and nothing too big), you would pay...
Property taxes in Mexico are nothing compared to the amount you pay in the States. The low amount of property taxes in Mexico is one of the biggest advantages of purchasing in Mexico. If I am not incorrect, I think the cost for property tax in California is about 1.5% of the value of the property, so for the average home in California, which could be maybe $600,000 to $700,000 (an average home that is nothing too small and nothing too big), you would pay about $10,000 a year on property taxes. That same property in Mexico (a $700,000 house in San Diego is around $300,000 in Mexico) is around $500 to $1,000 on property taxes. I remember paying property taxes to the government office around 2 years ago and my parents didn’t pay more than $1,000 for a $700,000 house.
(Arial view of Playa del Carmen, Mexico, pictured.)
Posted November 15, 2015
Ivan Castillo - Secure Title Riviera Maya
How much you pay in property taxes in Mexico varies on a case-by-case basis depending on the location of the property, and the most important thing is that the property taxes are paid based on the assessed value of the property.The assessed value of the property is the value that the government designates to a particular property. Usually, the assessed values in Mexico are very low. I always tell customers that it is an advantage to buy in Mexico because, for example, if...
How much you pay in property taxes in Mexico varies on a case-by-case basis depending on the location of the property, and the most important thing is that the property taxes are paid based on the assessed value of the property.The assessed value of the property is the value that the government designates to a particular property. Usually, the assessed values in Mexico are very low. I always tell customers that it is an advantage to buy in Mexico because, for example, if you buy property in certain states of the US the property taxes can be up to 2% of the commercial value of the property, while in Mexico, what you pay is quite small. For example, just to give you an idea, for a property that is worth $250,000 in Mexico, the property taxes that you might be paying on an annual basis might be less than $500 a year.
(Riviera Maya, Mexico, pictured.)
Posted January 25, 2016
David Schwendeman - Mexlend
Real estate taxes in Mexico are surprisingly low. Rates fluctuate a bit from location to location and just like the US and many other places your costs are based on the Tax Value or "Catastral Value" of the property. As a general rule, owners pay about $100.00 US per $100K in Tax Value. In other words a property valued at $100K will have a yearly tax of approximately $100.00 US - $500K will mean $500.00 US, etc.
Real estate taxes in Mexico are surprisingly low. Rates fluctuate a bit from location to location and just like the US and many other places your costs are based on the Tax Value or "Catastral Value" of the property. As a general rule, owners pay about $100.00 US per $100K in Tax Value. In other words a property valued at $100K will have a yearly tax of approximately $100.00 US - $500K will mean $500.00 US, etc.
Posted February 3, 2016
Mark O'Neill
My property tax for my half-acre property that had a purchase price of US $230,000 came to $420 for the year. If I were to have purchased the same property in the US, my property taxes would have been multiple thousands of dollars. My property tax was not on a special deal, but rather is the norm in Mexico. One of the huge elements that attracted me to the property I purchased was to be able to have a property while I had a limited retired income...
My property tax for my half-acre property that had a purchase price of US $230,000 came to $420 for the year. If I were to have purchased the same property in the US, my property taxes would have been multiple thousands of dollars. My property tax was not on a special deal, but rather is the norm in Mexico. One of the huge elements that attracted me to the property I purchased was to be able to have a property while I had a limited retired income upon which I would not be paying exorbitant taxes as you would in the US, that I could more easily enjoy as I’m approaching “adulthood.”
(The malecon, the boardwalk on Lake Chapala, Mexico, pictured.)
Posted June 27, 2016
Chris Gruenwald - Biencom Real Estate
Property tax here in Mexico is on a municipal level. Here in Chapala you would pay about US $200 a year for a $300,000 home, which, of course, is a small fraction of what you would pay in California for the same house. (Home with large yard, near Lake Chapala, Mexico, pictured.)
Property tax here in Mexico is on a municipal level. Here in Chapala you would pay about US $200 a year for a $300,000 home, which, of course, is a small fraction of what you would pay in California for the same house. (Home with large yard, near Lake Chapala, Mexico, pictured.)
Posted September 21, 2016
Alicia Gomez - Collins Real Estate
How much you pay in property tax depends on the size of your house, how big is your garden, the age of your property, etc. In general, property tax in Mexico is not high. The house I recently sold was on a 600 square meters lot (a little more than an eighth of an acre) and the house was about 340 square meters (3,600 square feet). On this entire property, the owner was paying 1,200 pesos (US $65.50) per year on property tax.
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How much you pay in property tax depends on the size of your house, how big is your garden, the age of your property, etc. In general, property tax in Mexico is not high. The house I recently sold was on a 600 square meters lot (a little more than an eighth of an acre) and the house was about 340 square meters (3,600 square feet). On this entire property, the owner was paying 1,200 pesos (US $65.50) per year on property tax.
(The garden of a three bedroom home in Chula Vista, Lake Chapala, Mexico, pictured.)
Posted October 13, 2016
Flip Nicholson - Fenix Real estate
When people find out what their property taxes are here in Mexico, they just laugh, especially if they’re coming from places like California or New York. A 2-bedroom, 2-bathroom home, which is about 2,000 square feet in Ajijic is going to run you about $80 - $100 on property taxes a year. I paid more than that a week up north. The difference is what you get back. For instance, you’re going to get a pothole on the road, the schools...
When people find out what their property taxes are here in Mexico, they just laugh, especially if they’re coming from places like California or New York. A 2-bedroom, 2-bathroom home, which is about 2,000 square feet in Ajijic is going to run you about $80 - $100 on property taxes a year. I paid more than that a week up north. The difference is what you get back. For instance, you’re going to get a pothole on the road, the schools aren’t as good, or the light bulb in the traffic light hasn’t been changed in a month. We’re going to take a little bit of that. When we pay our property tax, it’s $80. Along with the utility bills and the cost of living here in Chapala, you have to take some of that and get over the fact that they haven’t gotten around to fixing those potholes yet, or that there isn’t enough signage for you. Everyone who has been living here figured it out. That is a one-way street, but the sign’s not there. So what? We can all know that now.
That’s what you give and take with property taxes. You don’t get the things that you’re so used to north of the border where everything is perfectly groomed and clean, and everyone’s got rules and they all abide by it. It’s not that way here, so this isn’t for everybody.
(Two bedroom house in a gated subdivision, Ajijic, Mexico, pictured.)
Posted February 4, 2017
Andre Bellon - Bellon Insurance Agents
The home where I live is a big house in Guadalajara, and the property tax that we pay annually is more or less 9,000 pesos ($441). This home is valued at around 4 million pesos (around US $200,000). Real estate or property taxes in Mexico depend on where your home is and how many buildings you have. (Modern home in Guadalajara, Mexico, pictured.)
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The home where I live is a big house in Guadalajara, and the property tax that we pay annually is more or less 9,000 pesos ($441). This home is valued at around 4 million pesos (around US $200,000). Real estate or property taxes in Mexico depend on where your home is and how many buildings you have. (Modern home in Guadalajara, Mexico, pictured.)
Posted March 20, 2017
Greg Gunter - Dream Pro Homes
Readers, the short answer is “far less than where you’re coming from!” That will be especially true if you hail from either coast in the U.S. where $60,000 annual property tax bills are not uncommon. As a Realtor in San Miguel de Allende, I can share that the local municipality recently enacted a “Proposition 13” (for those of you familiar with California property tax laws) style property tax bill, meaning the home is now...
Readers, the short answer is “far less than where you’re coming from!” That will be especially true if you hail from either coast in the U.S. where $60,000 annual property tax bills are not uncommon. As a Realtor in San Miguel de Allende, I can share that the local municipality recently enacted a “Proposition 13” (for those of you familiar with California property tax laws) style property tax bill, meaning the home is now assessed based upon the new acquisition price of the home, but the mil levy is still amazingly low. To give you a real life example, a $500,000 USD home here in 2017 will have a 17,000 peso annual tax bill, or about $900 USD at the current exchange rate.
Posted May 4, 2017