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Understanding the complete property tax structure in Mérida is essential for making informed real estate investment decisions in 2025.
Property owners in Mérida face multiple tax obligations beyond the basic predial tax, including municipal charges, acquisition taxes for buyers, capital gains taxes for sellers, and rental income taxes for investors. The city offers significant early-payment discounts that can reduce your annual tax burden by up to 30% if you pay by January.
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The standard predial tax rate in Mérida is 0.19% of cadastral value, with early-payment discounts of 30% in January, 15% in February, and 8% in March.
Property buyers pay 2-2.5% acquisition tax (ISAI) plus notary fees of 0.5-1%, while sellers face capital gains tax of 25% of gross value or 1.92-35% of net gain depending on their tax strategy.
| Tax Type | Rate/Amount | When Applied |
|---|---|---|
| Predial Property Tax | 0.19% of cadastral value | Annual (due March 31) |
| Municipal Fixed Charges | MXN 300-800 annually | Annual (with predial) |
| ISAI Acquisition Tax | 2-2.5% of property value | One-time at purchase |
| Notary Fees | 0.5-1% of property value | One-time at purchase |
| Capital Gains Tax (ISR) | 25% gross or 1.92-35% net | At sale |
| Rental Income Tax | 1.92-35% + 16% IVA | Monthly filing |
| Early Payment Discount | 30% (Jan), 15% (Feb), 8% (Mar) | Applied to predial only |
What types of property exist in Mérida and how is their cadastral value determined in 2025?
Properties in Mérida fall into three main categories: residential houses, condominiums, and land parcels.
Residential houses include modern constructions in areas like Temozón Norte and Cholul, colonial properties in Centro Histórico, and suburban developments throughout the city. Condominiums range from luxury oceanfront units to standard apartments in mixed-use developments. Land parcels include development lots for future construction and residential plots ready for building.
The cadastral value is the official property valuation used by the Municipality of Mérida for tax calculations. As of September 2025, typical cadastral values are MXN 4.8 million for residential houses in premium northern zones like Temozón Norte, MXN 3.1 million for colonial properties in Centro Histórico, MXN 2.9 million for standard condominiums, and MXN 990,000 for residential land lots.
This value is determined by the municipal cadastre office based on property size, location, construction type, and official registry records. The exact cadastral value for your specific property appears on your annual predial tax bill or can be obtained using your cadastral account number at the municipal finance office.
What is the predial property tax rate in Mérida for 2025 and how is it calculated?
The standard predial property tax rate in Mérida for 2025 is 0.19% of the cadastral value.
This rate applies uniformly across all residential property types and locations within Mérida, whether you own a house in Temozón Norte, a condo in Centro, or a land parcel in any residential zone. The tax is calculated by multiplying your property's official cadastral value by 0.0019.
For example, a property with a cadastral value of MXN 1,000,000 would generate an annual predial tax of MXN 1,900 (1,000,000 × 0.0019). A higher-value property worth MXN 3,000,000 would owe MXN 5,700 annually.
The tax calculation uses the cadastral value as the base, not the market value or purchase price. This cadastral value typically remains stable for several years unless the property undergoes major renovations or the municipality conducts a general revaluation.
What additional municipal charges are included in the 2025 property tax bill?
Municipal charges in Mérida cover essential city services beyond the basic predial tax.
The 2025 municipal bill includes fixed fees for trash collection (recolección de basura), street lighting (alumbrado público), public safety services, and general municipal maintenance. These charges are standardized across property types but may vary based on property size and zoning classification.
Current municipal charges range from MXN 300 to MXN 800 annually, depending on your property's characteristics and location within the city. Properties in more central areas or larger residential developments may face higher service charges due to increased municipal service requirements.
These fixed charges appear as separate line items on your annual tax statement and are paid together with your predial tax. Unlike the predial tax, these municipal charges are not percentage-based but represent flat fees for city services provided to your property.
How do early-payment discounts work in Mérida for 2025?
Mérida offers substantial early-payment discounts to encourage timely property tax payments in 2025.
| Payment Month | Discount Percentage | Example Savings (MXN 5,000 tax) |
|---|---|---|
| January | 30% | MXN 1,500 |
| February | 15% | MXN 750 |
| March | 8% | MXN 400 |
| April onwards | 0% | MXN 0 |
| Late payment | Penalties apply | Additional costs |
The discounts apply only to the predial property tax portion of your bill, not to municipal charges or other fees. Property owners who pay their full annual predial tax in January receive the maximum 30% discount, while those paying in February get 15% off and March payers receive 8% off.
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What penalties and interest apply for late property tax payments in 2025?
Late payment penalties in Mérida begin immediately after the March 31 deadline for 2025 property taxes.
The municipality typically applies monthly interest rates of 1.5% to 2% on overdue amounts, compounding each month the payment remains outstanding. Additionally, penalty fees may be assessed as a percentage of the unpaid tax amount.
For example, if you owe MXN 5,000 in predial tax and pay three months late, you could face interest charges of MXN 225 to MXN 300 plus potential penalty fees. These costs accumulate monthly until full payment is made.
The municipality occasionally offers partial amnesties or penalty waivers during special collection periods, but these are not guaranteed. Property owners should confirm current penalty rates at the time of payment, as these can be adjusted annually by municipal ordinance.
What exemptions and reduced rates are available for property taxes in 2025?
Mérida provides several property tax exemptions and reductions for qualifying property owners in 2025.
1. **Senior Citizens and Retirees**: 50% to 100% discount on predial tax for residents over 60 years old2. **Disability Exemptions**: Up to 100% discount for property owners with certified disabilities3. **Primary Residence Discounts**: Exemptions for properties under certain cadastral value thresholds4. **Green Building Incentives**: Up to 15% discount for properties with solar panels or green roofs5. **Small Business Properties**: Up to 15% discount for qualified small business propertiesThe primary residence exemption typically provides 100% discount for properties with cadastral values up to MXN 345,000, 75% discount for values between MXN 345,000 and MXN 470,000, and 50% discount for higher-value primary residences.
These thresholds are indexed to inflation and updated annually by the municipality. Property owners must apply for exemptions through the municipal finance office with supporting documentation such as age verification, disability certificates, or residence declarations.
Exemption applications must be submitted during the first quarter of each year to qualify for that year's tax bill.
What are the property acquisition costs when buying in Mérida in 2025?
Property buyers in Mérida face several one-time taxes and fees during the purchase process in 2025.
The ISAI (Impuesto Sobre Adquisición de Inmuebles) property acquisition tax ranges from 2% to 2.5% of the property's value. This tax is calculated on the higher of either the actual sale price or the official cadastral/appraised value to prevent underreporting.
Notary fees typically range from 0.5% to 1% of the property value, though complex transactions may incur higher fees. These fees cover the notary's services in verifying the transaction, conducting title searches, and registering the property transfer.
Property registry fees are generally fixed at approximately MXN 377, regardless of property value. Additional costs may include appraisal fees, title insurance, and legal representation if you choose to hire additional counsel beyond the notary.
For a MXN 2,000,000 property purchase, expect total acquisition costs of approximately MXN 65,000: MXN 50,000 for ISAI tax (2.5%), MXN 15,000 for notary fees (0.75%), and MXN 377 for registry fees.
How is capital gains tax calculated when selling property in Mérida in 2025?
Property sellers in Mérida face capital gains tax (ISR) calculated using one of two methods in 2025.
The simplified method applies 25% tax to the gross sale value with no deductions allowed. This straightforward calculation requires minimal documentation but typically results in higher tax liability.
The comprehensive method taxes 1.92% to 35% of the net capital gain after allowable deductions. Deductions include the original purchase price, documented capital improvements with receipts, closing costs and notary fees from both purchase and sale, and inflation adjustments based on Mexican inflation indices.
Mexican residents who have used the property as their primary declared residence for at least three years may qualify for an exemption on gains up to 700,000 UDIs (approximately MXN 5.9 to 6.0 million in 2025). This exemption requires proof of residence declaration and RFC tax registration.
Foreign sellers typically face the 25% gross method unless they have established Mexican tax residency and can document all qualifying deductions. The choice between methods should be calculated before sale to determine the most tax-efficient approach.
What taxes apply to rental income from Mérida properties in 2025?
Property owners who rent their Mérida properties must pay multiple taxes on rental income in 2025.
Income tax (ISR) applies at rates from 1.92% to 35% based on total annual rental income, with monthly filing and payment required through the Mexican tax authority (SAT). All rental income must be declared monthly using your RFC tax number.
Value-added tax (IVA) of 16% applies to most rental arrangements and must be charged to tenants and remitted to tax authorities. This tax applies to both long-term and short-term rentals in most cases.
Short-term vacation rentals face an additional 5% lodging tax on gross rental income. Platforms like Airbnb often collect this tax automatically, but property owners remain responsible for ensuring proper payment.
All rental property owners must register for RFC tax identification and file monthly tax declarations even if platforms collect some taxes automatically. Failure to properly register and declare rental income can result in significant penalties and back-tax assessments.
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Are there additional state or federal charges beyond predial tax in Yucatán?
Property owners in Mérida face several additional charges beyond the municipal predial tax.
Water and sewer services are billed separately from property taxes, typically costing MXN 120 to MXN 400 per month depending on property size and usage. These utilities are managed by the local water authority, not the municipality.
Electricity costs are billed bi-monthly by the federal electricity commission (CFE) and vary significantly based on property size, usage, and whether you qualify for residential subsidies. Large properties or those with pools and air conditioning face substantially higher electricity costs.
There are no annual state or federal "ownership taxes" beyond the municipal predial tax and one-time acquisition taxes. However, new developments or properties in certain zones may face environmental impact fees or special assessment charges.
Property owners should budget approximately MXN 1,500 to MXN 5,000 annually for water and basic utility connections, separate from tax obligations.
How and when do you pay property taxes in Mérida in 2025?
Property tax payments in Mérida can be made through multiple convenient channels with specific deadlines in 2025.
The final deadline for discounted payments is March 31, 2025, after which late penalties begin accruing immediately. To receive the maximum 30% discount, payment must be completed by January 31.
1. **Online**: Municipal portal (isla.merida.gob.mx) using your cadastral account number2. **Banks**: Banorte, Banamex, BBVA, Scotiabank, HSBC, and Banco Azteca3. **Convenience Stores**: Oxxo, Elektra, and Super Willys locations4. **Municipal Offices**: Finance department during business hours5. **Authorized Payment Centers**: Various locations throughout the cityTo make payment, you need your cadastral account number (clave catastral), previous year's tax bill, or your property's complete street address. The cadastral number provides the most efficient payment processing.
Online payments typically process within 24 hours, while store and bank payments may take 2-3 business days to reflect in municipal records. Keep payment receipts for at least five years as proof of payment.
Can you provide a complete cost example for a MXN 2,000,000 property in 2025?
Here's a comprehensive breakdown of all taxes and fees for a property with a MXN 2,000,000 cadastral value in Mérida for 2025.
| Tax/Fee Type | Rate/Amount | Annual Cost (MXN) |
|---|---|---|
| Predial Property Tax (base rate) | 0.19% of cadastral value | 3,800 |
| Municipal Service Charges | Fixed annual amount | 700 |
| Total Annual (no discount) | Combined recurring costs | 4,500 |
| With January 30% Discount | Discount on predial only | 3,360 |
| ISAI Acquisition Tax (one-time) | 2.5% of property value | 50,000 |
| Notary Fees (one-time) | 0.75% of property value | 15,000 |
| Registry Fee (one-time) | Fixed government fee | 377 |
| Total Purchase Year Costs | One-time + annual fees | 69,860 |
This example shows that property ownership in Mérida involves manageable annual costs but significant upfront acquisition expenses. The early-payment discount saves MXN 1,140 annually on this example property.
Additional considerations include water/sewer bills (MXN 1,500-4,800 annually), electricity costs (highly variable), and potential rental income taxes if you plan to rent the property.
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Conclusion
This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.
Understanding Mérida's property tax structure is crucial for successful real estate investment in this growing market.
The combination of reasonable annual taxes, significant early-payment discounts, and various exemptions makes Mérida an attractive destination for property ownership, though buyers should budget carefully for substantial upfront acquisition costs.
Sources
- The LatinVestor - Mérida Price Forecasts
- Inmobilia - Complete Guide to Buying in Mérida
- Plalla - How to Calculate Property Tax in Mexico
- The Yucatan Post - Property Tax Payment in Merida 2025
- Life in Merida - How to Buy a House
- Yucatan Magazine - Property Taxes in Merida
- Mexico Living - Property Taxes in Mexico
- Mexico Travel Secrets - Buying a House in Mexico
- Plalla - How to Exempt Capital Gains Tax Mexico
- MexTax - Vacation Rentals Tax Perspective