Whilst generally lower than the US, regional differences in rates can effect final tax bills!
However, the exact amount of property tax you’ll pay in Cabo, Puerto Vallarta, and Punta Mita can vary based on several factors such as the location, type, and value of the property.
In general, property taxes in Cabo, Puerto Vallarta, and Punta Mita are usually calculated as a percentage of the declared value of the property, which is determined by the local government. The declared value is usually much lower than the market value, so the actual property tax bill is usually lower than it would be in other countries.
In Cabo, the tax rate is 0.17% of assessed value for residential property used by the owner and 0.36% for rental properties and undeveloped land within an urban subdivision. In Punta Mita, the tax rate on developed property is lower at 0.07% but a little bit higher than Cabo on undeveloped land, at 0.4%.
However, Puerta Vallarta has a progressive tax system. The highest bracket applies to properties with a tax value of over 219 million pesos. Owners of properties in this bracket will pay a fixed amount of approximately 92,000 pesos annually.
In lower brackets, the fixed amount drops. For example, a property tax with a value of 2.5 million Mexican pesos would pay approximately 4,100 pesos annually. Owners of a residential home of the same assessed value would pay 4,250 pesos annually in Cabo and 1,750 pesos annually in Punta Mita.
It’s important to note that these are rough estimates and that actual property tax rates can vary depending on the local government and other factors. It’s best to consult with a local real estate agent or tax professional for a more accurate assessment of property taxes in these specific locations.
