Predial: the property tax you can cut by paying in January
Predial is the yearly property tax every owner in Mexico pays to the municipality, foreigners included. What it's based on, who pays, the early-payment and senior discounts, and how to pay it.
The short answer: predial is the yearly property tax, paid to the municipality by whoever owns the property.
Each municipality sets its own rates and calculates the tax from the valor catastral, the value its own tables give the property. Foreign owners pay it like anyone else, including owners who hold the property through a bank trust. Most cities discount the whole year if you pay early: in 2026, Mexico City took off 8% in January, Guadalajara 10% in January and February, and Mérida up to 30% in early January. Many also cut it by half or more for retirees and people over 60, usually with a card that requires Mexican residency.
Predial matters to owners every year and to buyers once, because unpaid predial stays with the property. If you're still deciding whether to buy, start with Buying property in Mexico as a foreigner. The other bill you'll meet every couple of months is the CFE electricity bill.
What predial is
The impuesto predial is a tax on land and the buildings on it. Article 115 of Mexico's Constitution gives property taxes to the municipalities. Each municipality proposes its rates and its value tables (tablas de valores unitarios de suelo y construcción), and the state congress approves them, usually in the municipality's yearly revenue law (Ley de Ingresos). So predial in Mérida, San Miguel de Allende and Puerto Vallarta follows three different sets of rules.
The tax is worked out from the valor catastral, the cadastral value the municipality assigns from those tables. It isn't the price you paid, and it is often well below what the property would sell for. That's one reason predial is usually modest by US and Canadian standards. The rate structure differs by city, so the only reliable figure is the one on your own account.
Who pays
- The owner. If you hold the property through a bank trust (fideicomiso), the bank is the legal titleholder, but you as beneficiary pay the predial.
- Not the tenant, unless the lease says so. Renters still have a reason to care: a recent predial receipt in the landlord's name is one of the easiest ways to check that they own the place (see the póliza jurídica guide).
- The debt follows the property, with surcharges (recargos) and fines added. When a property is sold, the notary asks for proof that predial is paid up, so a seller's unpaid years come out at closing, not after you own it.
When to pay, and the early-payment discounts
Most municipalities let you pay predial in installments through the year (Mexico City bills by two-month period), or all at once. Paying the whole year at the start of the year usually earns a discount. These were the 2026 discounts in three cities with many foreign residents:
| City | Early-payment discount, 2026 |
|---|---|
| Mexico City | 8% for paying the full year in January, 5% in February |
| Guadalajara | 10% from January 2 to February 28, applied automatically |
| Mérida | 30% in January 1–15, 25% in January 16–31, then 15% and 12% in February and 8% in March |
Municipalities announce each year's discounts in December or early January, and they change. Check your own municipality's treasury (tesorería) site at the end of December, and if you're away for the winter, pay online.
Discounts for retirees and people over 60
Many municipalities cut predial sharply for retirees, pensioners, people over 60 and people with disabilities, usually on their home only. A few 2026 examples:
- Guadalajara: 50% for people aged 60 to 74, 60% from 75 to 79, and 80% from 80.
- Mérida: 50%, 75% or 100% for retirees, pensioners, older adults and people with disabilities, depending on the case.
- Mexico City: a fixed charge of 68 pesos per two-month period for qualifying groups, including older adults, on homes with a cadastral value up to 2,808,466 pesos.
The usual proof of age is the INAPAM card, Mexico's senior card, and municipal rules often require the property to be your home. Foreigners can get an INAPAM card at 60, but they have to show legal residence in Mexico: a temporary or permanent resident card, not a tourist entry.
How to pay
- Find your account number. It appears on the last predial receipt as the cuenta predial or clave catastral, and in the deed (escritura). If you just bought, ask the notary for it.
- Pay on the municipality's website, at the municipal treasury, or at the banks and shops it lists. Big cities take cards online.
- Keep every receipt. You'll need them to sell, and they're often accepted as proof of address.
- After buying, check that the account is in your name (or the trust's). The notary normally reports the sale to the cadastre, but confirm it before the first January.
Frequently asked questions
Do foreigners pay predial in Mexico?
Yes, on the same terms as Mexican owners. Predial is owed by the property's owner, whatever their nationality or immigration status.
How much is predial in Mexico?
It depends on the municipality and on the cadastral value it gives your property, so there's no national rate. It's usually modest by US and Canadian standards, and paying the full year early cuts it further.
What happens if I don't pay predial?
The debt grows with surcharges and fines and stays with the property. You won't be able to sell until it's paid, and the municipality can pursue collection.
Sources
- Constitution of Mexico, Article 115, section IV: municipalities collect property taxes and propose rates and value tables to the state congress.
- Mexico City 2026: UnoTV, citing the city's Finance Secretariat (8% and 5% discounts; 68-peso fixed charge for qualifying groups).
- Guadalajara 2026: UnoTV (10% early payment; discounts for older adults).
- Mérida 2026: Por Esto and Diario de Yucatán (early-payment schedule, retiree and solar discounts).
- INAPAM card for foreign residents: Excélsior.
Turning 60 in Mexico on tourist stays?
Senior discounts on predial usually need an INAPAM card, and that needs residency. ResidencyMexico's free calculator checks whether your income or savings meet your consulate's requirements. Open the calculator →
I run ResidencyMexico as well as this site.
Last checked October 9, 2026. Discounts are the 2026 figures; each municipality sets new ones every year. This is general information, not tax advice. If your city works differently, please tell me.
