How Much Are Property Taxes in Cabo San Lucas?

Everything you need to know about property tax, rates, deadlines, and tax tips for property owners in Los Cabos

By Yolanda Ramos – Team Leader at Tu Casa Cabo

📍 Introduction: buying a home is just the first step. Keeping it also has a cost

If you’re about to buy a property in Los Cabos — a house, condo, or lot — it’s important to know the mandatory annual costs, especially property tax.

The good news: property taxes in Mexico — and especially in Los Cabos — are notably lower than in the U.S. or Canada.

Here’s how much you pay, how it’s calculated, when it’s due, and what you can do to pay less.

📊 What is property tax (predial)?

Predial is a municipal tax that every property owner must pay each year. It’s calculated based on the property’s cadastral value, which is not the same as its market value.

👉 The cadastral value is set by the municipality, based on:

Location
Lot and construction size
Property type
Nearby services and infrastructure

💰 How much is property tax in Cabo San Lucas?

The general range is:

Property Type	Approx. Annual Predial (MXN)
Small condo (mid-range area)	$3,000 – $7,000 pesos
Mid-range residential home	$8,000 – $15,000 pesos
Luxury villa	$18,000 – $45,000 pesos
Oceanfront / premium residence	$50,000 – $100,000+ pesos

📌 In dollar terms, even $1M+ properties usually pay less than $3,000 USD a year.

💡 A comparable property in California could pay 10 to 15 times more per year in taxes.

📅 When is property tax due?

The tax is paid every fiscal year (January–December)
You can prepay in January or February and get a 15–20% discount
You can also pay semi-annually or quarterly, though you’ll lose the discount

📍 Payment can be made online or directly at the Los Cabos Municipal Treasury (Tesorería Municipal).

⚖️ What happens if you don’t pay?

It generates late fees and interest
It can block a future sale or the deed transfer process
You may lose access to certain municipal services

🧾 Other recurring costs to consider

In addition to predial:

Expense	Estimated Amount (monthly/annual)
HOA / maintenance fees (if applicable)	$100 – $600 USD / month
Bank trust (fideicomiso, for foreign owners)	$500 – $1,000 USD / year
Property insurance (optional but recommended)	$300 – $800 USD / year

🧠 Can property tax be deducted?

Yes — if the property generates income (short-term or long-term rental), predial can be deducted as an expense with the SAT. 🔍 Consult a specialized accountant to structure your investment tax-efficiently.

🤝 Conclusion

Although property values in Cabo San Lucas can be high, annual property taxes are very low compared to the U.S. or Canada, which makes long-term investment here even more attractive.

What matters most is:

✅ Knowing your obligations
✅ Taking advantage of the discounts
✅ Having a reliable legal and tax team behind you

👉 At Tu Casa Cabo, we help you structure everything correctly from day one, whether you’re a domestic or foreign buyer.

📧 Have questions about the taxes on a specific property?

📩 Email us: hola@tucasacabo.com
📅 Book a personalized call: https://calendly.com/yolanda-ramos-tucasacabo/30min

Yolanda Ramos

Your Trusted Guide to Luxury Living in Los Cabos

Tu Casa Cabo is the leading bilingual real estate team for American and Canadian buyers in Los Cabos. Led by Co-Brokers Yolanda Ramos and Alex Sepulveda, our specialized agents walk you through the fideicomiso, secure escrow accounts, and independent legal counsel, so your purchase is safe from contract to closing. We help discerning buyers find their second or third home near thriving expat communities, world-class beaches, and direct flights from the US and Canada. Let us help you find your place in Los Cabos.