For typical foreign-buyer-target inventory at $300,000 USD-$1,000,000 USD market value, annual predial runs roughly $500 USD-$3,000 USD depending on state. This calculator models the realistic annual carrying cost on Mexican property — predial (municipal property tax), fideicomiso annual trustee fee for coastal restricted-zone, ongoing utilities, and other recurring costs. It accepts location, catastral value, and inland/coastal status.
It is built for honest underwriting of the holding-cost component that surprises some buyers post-closing.
How to use the calculator
The calculator requires:
- Property location: state and municipality. Predial is administered municipally — rates vary by state and municipality. Foreign-buyer-popular states include Yucatán, Quintana Roo, Jalisco, Baja California Sur, Nayarit, Guanajuato, Querétaro.
- Assessed value (valor catastral): the property's official tax-basis value. Important — this is typically substantially below market purchase price. Mexican catastral values are often 30-70% of market value, with substantial regional variation. Use the actual catastral value from the property's existing predial bill, not the purchase price.
- Coastal vs. inland: coastal property within the restricted zone requires a fideicomiso (bank trust), which adds an annual trustee fee.
- Fideicomiso bank: typical bank options (BBVA, Banamex/Citi, HSBC, Santander, others) — annual trustee fees vary modestly across banks.
The calculator outputs:
- Annual predial: typically 0.05-0.4% of catastral value depending on state and municipality.[State and municipal hacienda offices for predial rate framework, with INEGI compilations, 2026-04]
- Fideicomiso annual fee (coastal only): typically $500 USD-$750 USD per year, varying by bank and trust value.[Mexican bank fee schedules for fideicomiso administration, 2026-04]
- Estimated utilities (electricity, water, internet) by state: variable input
- Insurance estimate: variable input
- HOA dues if applicable: variable input
- All-in annual carrying cost
Federal vs. state vs. municipal predial — what's actually taxed where
There is no federal predial. Predial is municipal, with rates and assessment methodology set at the state level (the state hacienda framework) and administered at the municipal level. State-level rate ranges set the band; the municipality applies the specific rate and runs the catastral assessment cycle. Practical implication: two municipalities in the same state can apply meaningfully different effective rates, and catastral revaluation cycles are municipal — your neighbor's catastral may be 5 years older than yours.
Assumptions
- Catastral value is the input; the calculator does not estimate catastral from market price (catastral-to-market ratios vary too much regionally)
- Predial discounts for early-year payment (many municipalities offer 6-15% discounts for January/February payment) are not modeled — calculator uses the gross rate
- Fideicomiso fee is modeled as a fixed annual range; actual fee may scale with trust value at some banks
When to override the default
Override the default when:
- The property has had a recent catastral revaluation (some municipalities revalue every few years and the next year's predial steps up)
- You qualify for an INAPAM (senior) predial discount (some municipalities offer 50% discount for residents over 60)
- Your fiduciario bank has quoted a non-typical annual fee
- The property is in a HOA that handles certain otherwise-municipal costs (water in some master-planned developments)
State-by-state predial summary
- Yucatán (Mérida): among Mexico's lowest, typically 0.05-0.15% of catastral. Combined with low catastral-vs-market-value ratios, Yucatán annual predial is often the lowest of the foreign-buyer-popular states.
- Quintana Roo (Cancún, PDC, Tulum): predial typically 0.1-0.3% of catastral. Higher than Yucatán but moderate by Mexican standards.
- Jalisco (Guadalajara, Vallarta, Lake Chapala): predial typically 0.1-0.25% of catastral, with municipal variation.
- Baja California Sur (Cabo): predial typically 0.15-0.35% of catastral. Among the higher rates of foreign-buyer-popular states.
- Nayarit (Sayulita, Punta Mita): predial typically 0.1-0.3%.
- Guanajuato (San Miguel de Allende): predial typically 0.1-0.25%.
- Querétaro: predial typically 0.1-0.25%.
For foreign-buyer underwriting, the typical range across major states is $500 USD-$3,000 USD annually for typical foreign-buyer-target inventory at $300,000 USD-$1,000,000 USD market value.
What the calculator does NOT account for
- Income tax on rental income: see /calculators/short-term-rental-yield/ for STR-specific underwriting including ISR
- Capital gains at sale: ISR on capital gains operates separately
- Catastral revaluation: many municipalities periodically revalue, which steps up ongoing predial
- Special assessments: HOA special assessments and municipal infrastructure assessments occur but are not predictable
- Cross-border tax framework: US Form 1116 / Canadian T2209 reconciliation runs separately on the home-country tax return
Next step
After running the calculator:
- Verify the property's actual catastral value before underwriting — catastral is typically much lower than market and varies meaningfully across the same neighborhood
- Verify your specific fiduciario bank's annual fee if coastal — bank quotes vary
- Model a scenario for catastral revaluation — some municipalities revalue every few years
- Review the closing-cost framework at /mexico/closing-costs/ for one-time costs at acquisition
For weekly Mexico cross-border-buyer reads, /newsletter sends one curated note per week.
For coastal restricted-zone property mechanics including fideicomiso details, see /mexico/fideicomiso/. For the general buying process, see /mexico/how-to-buy-property/.
Disclaimer
This article is for informational purposes only and does not constitute financial or investment advice. Tax rates, fees, and assessment frameworks change. Calculator outputs are estimates based on user inputs and should not be relied on without independent verification. Consult a qualified financial advisor before making decisions based on this information.
Current as of 2026-10-02. We review financial content quarterly and update on rule changes. To report an error, contact us.