Property Tax (Predial) in Los Cabos: Rates, Early Discounts, and Payment Guide

What Is Predial and How Is It Governed in Baja California Sur?

Property tax in Mexico, known as the Impuesto Predial, is an annual municipal tax levied on real estate. For homeowners and investors purchasing property across the municipality of Los Cabos, understanding how Predial is assessed, structured, and collected is an essential part of evaluating ongoing holding costs.

Municipal taxation in Los Cabos is governed by state legislation and administered by the municipal treasury (Tesorería Municipal). Because tax obligations attach directly to the real estate, understanding this statutory foundation protects buyers from inherited liabilities and ensures smooth ownership operations.

The Statutory Framework: Ley de Hacienda para el Municipio de Los Cabos

The assessment, rates, and collection procedures for property taxes across Cabo San Lucas, San Jose del Cabo, and surrounding districts are established under state legislation: the Ley de Hacienda para el Municipio de Los Cabos, Baja California Sur, published in the Boletín Oficial del Gobierno del Estado de Baja California Sur (BOGE).

Under Article 20 of this statute, the tax base covers both urban and rustic parcels, along with permanent construction:

"ARTÍCULO 20.- Es objeto del Impuesto Predial, en su caso:
I. La propiedad de predios urbanos y rústicos, y las construcciones permanentes existentes en ellos.
II. La posesión de los predios urbanos y rústicos, y las construcciones permanentes existentes en ellos…"

This statutory language establishes that contractual instruments granting material possession create a taxable event for Predial, even before final title conveyance is inscribed.

Cadastral Value vs Commercial Market Value

One of the most important distinctions for international property buyers is the separation between commercial market value and official cadastral value (valor catastral).

In Los Cabos, Predial is not calculated on the purchase price stated in a private purchase agreement or MLS listing. Instead, it is levied exclusively against the cadastral value registered with the Dirección Municipal de Catastro. The cadastral value is established using municipal valuation tables (Tabla de Valores Unitarios de Suelo y Construcción), which evaluate land area, location classification, and construction quality.

The cadastral value can differ from the price paid for a property, so ask your notary for the cadastral value on record before you budget. Communities such as Palmilla, Querencia and Pedregal list their association fees separately in our community guides.

Fideicomiso Beneficiaries as Direct Taxable Subjects (Article 22)

Foreign buyers acquiring residential property in the restricted coastal zone of Mexico hold equitable ownership through a Mexican bank trust (fideicomiso), as detailed in our guide to fideicomisos. Under Article 22, section f of the Ley de Hacienda para el Municipio de Los Cabos:

"ARTÍCULO 22.- Son sujetos por deuda propia y con responsabilidad directa del Impuesto Predial:…
f).- Los fideicomitentes, mientras sean poseedores del predio objeto del fideicomiso o de los fideicomisarios que estén en posesión del predio…"

As the trust beneficiary (fideicomisario) holding beneficial rights and physical possession, you are directly liable for the timely payment of annual Predial. Furthermore, under Article 23, purchasers of real estate carry objective responsibility (responsabilidad objetiva) for any unpaid taxes attached to the parcel. Working with a qualified Mexican Notario Público ensures all prior tax periods are fully settled before closing, a process discussed in our guide to closing costs.

Official Los Cabos Property Tax Rates (Article 29)

Tax rates in Los Cabos are statutory millage rates expressed al millar (parts per thousand). Article 29 of the municipal tax law establishes specific rate tiers depending on property type, use, and occupancy status.

Primary Residential Properties (1.5331 al millar / 0.15331%)

Under Article 29, inciso a, an urban property dedicated exclusively to residential use where the owner resides qualifies for a preferential baseline rate:

"a). A razón de 1.5331 al millar sobre el valor catastral de los predios destinados exclusivamente para el uso de casa habitación, siempre que en ella habite el propietario…"

This rate of 1.5331 al millar (0.15331% of cadastral value) is reserved strictly for owner-occupied primary residences.

Secondary Residences, Rentals, and Commercial Properties (3.0663 al millar / 0.30663%)

When a property is not occupied as the primary home of the taxpayer, other rate categories apply:

• Non-Primary or General Use: Under Article 29, inciso b, properties dedicated to a use other than the taxpayer’s residence are assessed:
  

  "b). A razón de 3.0663 al millar sobre el valor catastral de los predios destinados a uso distinto del de casa habitación del contribuyente."
  Vacation homes and secondary residences frequently fall under this 3.0663 al millar (0.30663%) classification.

• Residential Rental and Mixed-Use Properties: Under Article 29, inciso e, parcels dedicated to residential leasing (alquiler de casa habitación) or mixed residential-commercial use carry a statutory rate of 2.2997 al millar (0.22997%).

Because classification depends on property registration and declared occupancy, our team advises property owners to verify their cadastral classification with their closing attorney, accountant, or the municipal treasury.

Unbuilt Vacant Homesites and Land Parcels (6.1326 al millar)

Buyers purchasing undeveloped lots in luxury communities must account for unbuilt land tax provisions under Article 29, inciso c:

"c). A razón de 6.1326 al millar sobre el valor catastral de los predios no edificados o baldíos, incrementándose anualmente en un 0.6132 al millar hasta en tanto no sea construida una edificación. La tasa no excederá de 12.2652 al millar."

Under Article 29, inciso d, unbuilt lots located within legally authorized master-planned subdivisions remain at a rate of 3.0663 al millar per year, provided the developer has not yet alienated or transferred the parcel to third parties under promissory contracts. A lot is legally considered unbuilt if existing structures represent less than 50% of the cadastral land value. In no case shall annual Predial be less than one daily Unit of Measure and Update (Unidad de Medida y Actualización, or UMA).

How the Rate Applies: A Worked Example

The tax is the rate applied to the cadastral value that the municipal Catastro has on record, not to the price you paid. Your notary or the municipal Tesorería can tell you the cadastral value of a specific property. As plain arithmetic, for a property with a cadastral value of MXN 1,000,000:

For the other carrying costs of a home, such as association fees, see our community guide to Club Campestre and our community guide to Palmilla.

Early-Payment Discounts: Saving 10% to 20% Annually

The municipality of Los Cabos incentivizes early tax compliance by offering substantial discounts for homeowners who pay their annual Predial in a single installment at the beginning of the fiscal year.

The Municipal Discount Window (January through April)

Under Article 30 of the Ley de Hacienda para el Municipio de Los Cabos, standard Predial is due bimonthly in advance during the first 10 days of January, March, May, July, September, and November. However, taxpayers who pay their entire annual assessment in a single payment during the first four months of the year receive statutory prepayment discounts:

"ARTÍCULO 30º… Los contribuyentes que paguen el Impuesto Predial del ejercicio en una sola exhibición, dentro de los meses de Enero, Febrero, Marzo y Abril de cada Ejercicio Fiscal, tendrán derecho a una reducción de hasta el 20 % que autorice el H. Ayuntamiento de Los Cabos del monto total anual del Impuesto."

The municipal council (Cabildo) enacts the specific monthly discount schedule each fiscal year:

• January: 20% discount on total annual Predial when paid in full.
• February: 15% discount on total annual Predial.
• March: 10% discount on total annual Predial (ending on March 31).
• April: 5% discount on total annual Predial.
• May onward: Full standard tax bill without discount, subject to statutory late surcharges (recargos) and penalties.

Senior and Pensioner Reductions (Article 182: 50% Exemption)

Special statutory tax relief is provided under Article 182 of the municipal tax law:

"ARTÍCULO 182º. Se establece, a favor de los Pensionados, Jubilados, discapacitados y personas de la tercera edad, una reducción que será del 50% en el pago de las contribuciones que a continuación se indican:
Impuesto Predial, únicamente sobre el inmueble donde vivan dichas personas y que sea de su propiedad."

To qualify for this 50% reduction, the individual must be the legal owner, reside in the home, and provide appropriate official identification, such as credentials issued by INAPAM.

Step-by-Step: How to Pay Your Predial Online

Property owners can pay their annual Predial online through the official Tesorería Municipal de Los Cabos digital payment system.

1. Locate Your Clave Catastral: You must have your property’s 14 to 16 digit cadastral registration number (Clave Catastral). This number appears on your registered deed (escritura pública), your fideicomiso contract, or prior municipal tax receipts. The number encodes the municipal delegation, zone, sector, block, and parcel.
2. Access the Official Portal: Visit the municipal treasury portal (https://www.tesoreria.loscabos.gob.mx/pagos-y-consultas/) and navigate to the online Predial consultation module (consulta-predial.php). Enter your Clave Catastral to view the registered owner name, cadastral valuation, tax year, applicable early payment discount (20%, 15%, 10%, or 5%), and total balance due.
3. Choose Your Settlement Method:
   • Online Card Payment: Pay via the credit and debit card gateway operated through the municipal BBVA multipay portal (pcard.php).
   • Bank Window Reference Slip: Generate a payment slip (referencia_ventanilla_bancaria.php) to pay in cash or by cheque at Mexican banking institutions including BBVA, Banorte, or Santander.
4. Download Your Receipt and CFDI: Print the official digital payment voucher. If you require an electronic tax invoice for fiscal accounting, generate a CFDI in XML and PDF format through the municipal portal (consulta_factura.php).

Physical Payment Windows in Los Cabos

For homeowners who prefer in-person settlement, the municipal treasury operates collection offices (cajas recaudadoras):

• San Jose del Cabo: Palacio Municipal in historic Centro and Plaza San Jose at the central municipal treasury.
• Cabo San Lucas: Edificio Delegacional on Calle Camino al Faro, plus service modules in shopping plazas including Plaza Patio Los Cabos and Plaza Sendero.
• Rural Delegations: Local delegation offices in Miraflores, Santiago, and La Ribera.

Real Estate Closing Requirement: The Constancia de No Adeudo

Property tax compliance is also a statutory prerequisite for transferring real estate in Mexico.

Why Mexican Notaries Require Tax Clearance Prior to Deed Execution

Under Article 25 of the municipal tax law, a Notario Público holds joint statutory responsibility (responsabilidad solidaria):

"ARTÍCULO 25.- Son sujetos por deuda ajena y con responsabilidad solidaria los siguientes:…
d).- Los Notarios Públicos, Jueces de Primera Instancia que por receptoría hagan sus veces y los funcionarios del Registro Público de la Propiedad y del Comercio, que autoricen escrituras públicas o privadas, den fe o inscriban actos o contratos de los que se originen créditos a favor del Municipio, sin cerciorarse previamente de que los mismos han sido pagados íntegramente."

Because Notarios are held personally liable for unpaid municipal taxes on transactions they authorize, no Notario will execute a deed or formalize a bank trust without an official certificate of no tax debt (Constancia de No Adeudo de Impuesto Predial) issued directly by the Tesorería Municipal under Article 50.

30-Day Cadastral Update Obligation for New Buyers (Article 21)

Following closing, the new property owner must register the conveyance. Under Article 21 of the Ley de Hacienda para el Municipio de Los Cabos:

"ARTÍCULO 21.- Quienes adquieran la propiedad o posesión de bienes inmuebles en los términos del artículo anterior, estarán obligados a manifestarlo a la Dirección de Catastro, dentro de los treinta días hábiles siguientes a la realización del hecho, utilizando para tal efecto las formas oficiales autorizadas."

Within 30 business days following the transfer of property or material possession, the conveyance must be filed with the municipal Catastro office using authorized forms. During a standard purchase transaction, your closing attorney or Notario coordinates this filing during deed registration.

For buyers researching neighborhoods and regional amenities across the region, explore our Cabo San Lucas area guide, our San Jose del Cabo area guide, and our Tourist Corridor area guide. For tailored transaction guidance across master-planned communities, connect with our team through our buying advisory service.