Authored by the expert who managed and guided the team behind the Mexico Property Pack
Everything you need to know before buying real estate is included in our Mexico Property Pack
Property taxes in Puebla are significantly lower than what most foreign buyers expect from their home countries.
The annual property tax (predial) in Puebla typically ranges from 0.1% to 0.3% of the assessed value, with most homeowners paying between 400 to 2,000 pesos per year depending on their property value. Beyond the basic property tax, buyers face a 2% acquisition tax and total closing costs of around 5% of the purchase price.
If you want to go deeper, you can check our pack of documents related to the real estate market in Mexico, based on reliable facts and data, not opinions or rumors.
Property taxes in Puebla are calculated on the cadastral value, which is typically 10-30% of market price, resulting in very low annual tax bills.
For a 1 million peso home, expect to pay around 400 pesos annually in property tax, plus acquisition taxes of 20,000 pesos when purchasing.
| Property Value (Market) | Annual Property Tax (Predial) | Acquisition Tax (One-time) | Total Closing Costs |
|---|---|---|---|
| 1,000,000 pesos | 400 pesos/year | 20,000 pesos | 50,000 pesos |
| 2,000,000 pesos | 800 pesos/year | 40,000 pesos | 100,000 pesos |
| 3,000,000 pesos | 1,200 pesos/year | 60,000 pesos | 150,000 pesos |
| 4,000,000 pesos | 1,600 pesos/year | 80,000 pesos | 200,000 pesos |
| 5,000,000 pesos | 2,000 pesos/year | 100,000 pesos | 250,000 pesos |
What's the current property tax rate (predial) in Puebla as a percentage of assessed value?
The annual property tax rate (predial) in Puebla ranges from 0.1% to 0.3% of the cadastral assessed value.
Most residential properties in Puebla fall under a rate close to 0.2% (or 0.002 in decimal form) of the assessed value. This rate applies specifically to the cadastral value, not the market value of your property.
As of September 2025, many municipalities in the Puebla region apply rates around 0.19% for typical residential properties. The exact rate can vary slightly depending on the specific zone within Puebla and the type of residential property you own.
This rate is significantly lower than property tax rates in countries like the United States or Canada, where rates often exceed 1% of market value.
How is property value assessed for tax purposes, and is it typically lower than market price?
Property values for tax purposes are based on the cadastral value, which is assigned by municipal authorities using specific criteria.
The cadastral assessment considers your property's location, land size, construction area, building type and age, and general property characteristics. Municipal assessors use standardized formulas rather than current market conditions to determine this value.
The cadastral value is substantially lower than market value, typically ranging from 10% to 30% of what you would actually pay for the property. This significant difference keeps property tax burdens much lower compared to countries that tax based on market value.
For example, if you buy a house for 2 million pesos at market price, the cadastral value might only be assessed at 400,000 to 600,000 pesos for tax calculation purposes.
How much does a homeowner pay annually in property tax for a house worth 1 million pesos?
A homeowner with a 1 million peso house typically pays around 400 pesos per year in property tax.
This calculation assumes the cadastral value is set at 20% of market price (200,000 pesos) with a 0.2% tax rate. If the cadastral assessment is higher at 30% of market value, you might pay closer to 600 pesos annually.
Using the common 0.19% rate applied in many Puebla municipalities, the annual tax would be approximately 380 pesos for a 1 million peso home. Some homeowners qualify for early payment discounts of 10-25%, which could reduce this to as low as 285-342 pesos per year.
These amounts are remarkably low compared to international standards, making property ownership very affordable in Puebla from a tax perspective.
What would the yearly property tax be for a house valued at 2 million pesos?
For a 2 million peso house, the annual property tax would be approximately 800 pesos per year.
This calculation uses a cadastral value of 400,000 pesos (20% of market value) multiplied by the standard 0.2% tax rate. With the 0.19% rate commonly applied in Puebla, you would pay around 760 pesos annually.
Even with a higher cadastral assessment at 30% of market value (600,000 pesos), the annual tax would only reach about 1,200 pesos. Early payment discounts could reduce these amounts by 10-25%.
The tax burden remains extremely manageable, representing less than 0.05% of the property's market value annually.
How does the tax change for an expensive home worth 5 million pesos?
A 5 million peso home would generate an annual property tax of approximately 2,000 pesos.
Using the standard calculation with a cadastral value of 1 million pesos (20% of market value) and a 0.2% tax rate, the annual burden reaches 2,000 pesos. With the 0.19% rate, this drops slightly to 1,900 pesos per year.
Even for this high-value property, the tax represents only 0.04% of the market value annually. Senior citizens or disabled homeowners can qualify for up to 50% discounts, potentially reducing the tax to just 1,000 pesos per year.
This demonstrates how Mexico's property tax system keeps ownership costs low even for luxury properties.
It's something we develop in our Mexico property pack.
What additional municipal fees are charged beyond property tax?
Homeowners in Puebla pay additional municipal fees for various public services beyond the basic property tax.
These fees typically cover garbage collection, street lighting, water services, and general municipal maintenance. The total cost for these services ranges from 2,000 to 5,000 pesos per year for a typical residence.
The exact amount depends on your property's location within Puebla, the level of services provided in your neighborhood, and the size of your property. Some upscale areas with enhanced services may charge toward the higher end of this range.
These municipal fees are separate from your annual predial tax and are usually billed quarterly or semi-annually. They represent essential services that maintain the infrastructure and cleanliness of your neighborhood.
What are the transfer taxes and notary fees when buying a house in Puebla?
When purchasing property in Puebla, you'll pay a 2% acquisition tax plus additional closing costs.
| Fee Type | Rate/Amount | Example (1M peso home) |
|---|---|---|
| Acquisition Tax | 2% of purchase price | 20,000 pesos |
| Notary Fees | 1-2% of purchase price | 10,000-20,000 pesos |
| Registration Fees | Variable by property value | 3,000-8,000 pesos |
| Legal/Administrative | 0.5-1% of purchase price | 5,000-10,000 pesos |
| Total Closing Costs | ~5% of purchase price | 50,000 pesos |
Don't lose money on your property in Puebla
100% of people who have lost money there have spent less than 1 hour researching the market. We have reviewed everything there is to know. Grab our guide now.
How much are yearly homeowners' association fees in Puebla residential areas?
Homeowners' association or neighborhood maintenance fees in Puebla vary significantly based on the development type and amenities offered.
Typical residential neighborhoods or condominium communities charge between 800 to 3,000 pesos per month, which equals 9,600 to 36,000 pesos annually. Basic communities with minimal amenities stay toward the lower end, while developments with pools, security, and landscaping charge more.
Gated communities with 24/7 security, clubhouses, and extensive grounds can charge even higher fees. These costs are separate from your property tax and municipal fees.
Before purchasing, always verify the current HOA fees and any planned increases, as these represent a significant ongoing expense beyond your mortgage and taxes.
What is the acquisition tax in Puebla, and how much would it be on a 1 million peso home?
The acquisition tax (Impuesto sobre AdquisiciĂłn de Inmuebles) in Puebla is 2% of the property's purchase price.
For a 1 million peso home, you would pay exactly 20,000 pesos in acquisition tax. This is a one-time fee paid during the closing process when you purchase the property.
The buyer typically pays this tax, though this can sometimes be negotiated with the seller as part of the purchase agreement. The acquisition tax is calculated on the actual purchase price, not the lower cadastral value used for annual property taxes.
This tax must be paid before the property transfer can be completed and registered in your name.
How much are registration fees at the Public Registry of Property?
Registration fees at the Public Registry of Property are tiered based on the property's value rather than being a fixed amount.
These fees are included in the total closing costs, which average around 5% of the purchase price for all fees combined. For a 1 million peso property, registration fees typically range from 3,000 to 8,000 pesos.
The exact fee schedule can change, so your notary will provide the current rates during the closing process. Higher-value properties pay proportionally more in registration fees.
These fees cover the official recording of your property ownership in the public records, which is essential for establishing clear legal title to your property.
We did some research and made this infographic to help you quickly compare rental yields of the major cities in Mexico versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you're planning to invest there.
What extra taxes or charges apply if you finance your home with a mortgage?
Financing your home purchase with a mortgage adds several costs beyond the basic property taxes and fees.
You'll pay 16% VAT on financial services and professional fees related to the mortgage setup. Required insurance includes life insurance, fire insurance, and property insurance, typically costing 3,000 to 8,000 pesos annually for homes valued between 1-2 million pesos.
Lenders charge origination and administrative fees, which vary by institution but typically range from 0.5% to 2% of the loan amount. Some notary costs may be slightly higher for mortgage transactions due to additional documentation requirements.
These mortgage-related costs are ongoing annual expenses that homeowners must budget for beyond their monthly mortgage payments.
It's something we develop in our Mexico property pack.
What exemptions or discounts can reduce the yearly tax burden?
Several discounts and exemptions can significantly reduce your annual property tax in Puebla.
1. **Early Payment Discounts**: Pay your annual property tax in January or February to receive 10-25% off the total amount.2. **Senior Citizen Discounts**: Homeowners over 60 years old can qualify for up to 50% off their annual property tax with proper documentation.3. **Disability Exemptions**: Disabled property owners may receive up to 50% discounts on their predial tax with medical certification.4. **Low-Income Exemptions**: Some municipalities offer partial exemptions for homeowners meeting specific income criteria.5. **First-Time Buyer Programs**: Occasionally available state-level incentives, though these are more common for acquisition taxes than ongoing property taxes.For a 1 million peso home with a typical 400 peso annual tax, a 25% early payment discount reduces the bill to 300 pesos, while a 50% senior citizen discount could lower it to just 200 pesos annually.
It's something we develop in our Mexico property pack.
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.
Property taxes in Puebla represent one of the most attractive aspects of real estate ownership in Mexico, with annual costs that are a fraction of what buyers pay in most developed countries.
The combination of low property taxes, reasonable closing costs, and available discounts makes Puebla an excellent choice for both investors and residents seeking affordable property ownership.
Sources
- Plalla - How to Calculate Property Tax in Mexico
- TheLatinvestor - Full List Property Taxes Mexico
- Settlement Co - Property Taxes in Mexico
- Live and Invest Overseas - Taxes in Mexico
- TheLatinvestor - Puebla Real Estate Market
- Greenback Tax Services - US Tax Break Americans Own Property Mexico
- PWC Tax Summaries - Mexico Individual Taxes
- Confident Group - Property Tax Assessment