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Property taxes in Querétaro are surprisingly affordable compared to other international markets, making the city an attractive destination for real estate investors and residents alike.
As of September 2025, residential property owners in Querétaro pay approximately 0.19% of their property's cadastral value annually in property tax (called "predial"), plus additional municipal service fees that typically range from 2,000 to 5,000 pesos per year. Early payment discounts of up to 12% make these taxes even more manageable for savvy property owners.
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Property taxes in Querétaro for 2025 are calculated at 0.19% of the cadastral value, with significant early payment discounts available.
Total annual costs for an average 2 million peso residential property range from 5,344 to 8,344 pesos when including municipal service fees.
| Tax Component | Rate/Amount | Notes |
|---|---|---|
| Base Property Tax Rate | 0.19% of cadastral value | Applied to residential properties |
| Early Payment Discount (January) | 12% reduction | Plus free insurance coverage |
| Early Payment Discount (February) | 8% reduction | Still includes insurance benefits |
| Municipal Service Fees | 2,000-5,000 MXN annually | Includes waste collection, lighting |
| Late Payment Penalty | 1.5% per month | Plus 5-10% surcharges after 3 months |
| Senior/Disabled Discount | Up to 50% reduction | Requires application and proof |
| Foreign Owner Premium | None in Querétaro | Same rates as Mexican citizens |
What's the current base property tax rate in Querétaro for 2025?
The base property tax rate in Querétaro for 2025 is 0.19% of the cadastral value for residential properties.
This rate translates to 0.0019 as a multiplier when calculating your annual property tax bill. The cadastral value is the municipal-assessed value of your property, which is typically lower than the market value you might pay when purchasing the property.
For example, if your property has a cadastral value of 1,000,000 pesos, your annual property tax would be 1,000,000 × 0.0019 = 1,900 pesos before any discounts or additional fees. This rate has remained stable throughout 2025 and represents one of the most competitive property tax rates in Mexico's major cities.
The 0.19% rate applies specifically to residential properties and is significantly lower than property tax rates in many other countries, making Querétaro an attractive destination for both Mexican and foreign property investors.
How does the tax rate change depending on whether the property is residential, commercial, or industrial?
The base property tax rate of 0.19% officially applies to residential, commercial, and industrial properties in Querétaro.
However, commercial and industrial properties typically face higher effective tax amounts due to their elevated cadastral valuations. The municipal assessment process assigns higher values to commercial and industrial properties based on their land use classification and construction type, which results in larger tax bills even though the rate remains the same.
For instance, a commercial property with the same square footage as a residential property might have a cadastral value that's 50-100% higher, leading to proportionally higher annual tax payments. Industrial properties often face even higher assessments due to their specialized infrastructure and commercial potential.
As of September 2025, no explicit statutory higher rates for commercial or industrial properties have been published by the Querétaro municipality, but property owners should expect their effective tax burden to be substantially higher than residential properties of similar size.
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What are the exact brackets or formulas used to calculate the property tax based on property value?
Querétaro uses a straightforward formula without complicated brackets or tiers for property tax calculation.
The formula is: Annual Property Tax (MXN) = Cadastral Value × 0.0019. This simple calculation applies to all property values without different rates for different value ranges, making it easy for property owners to calculate their expected tax burden.
Here are practical examples of how this formula works across different property values:
| Cadastral Value (MXN) | Annual Tax (Before Discounts) | With 12% Early Discount |
|---|---|---|
| 500,000 | 950 | 836 |
| 1,000,000 | 1,900 | 1,672 |
| 2,000,000 | 3,800 | 3,344 |
| 3,000,000 | 5,700 | 5,016 |
| 5,000,000 | 9,500 | 8,360 |
| 10,000,000 | 19,000 | 16,720 |
Are there additional taxes or fees tied to location, like being inside city limits versus outside?
Yes, location significantly affects your total property-related costs beyond the base property tax rate.
Properties inside Querétaro city limits face additional municipal service fees that typically range from 2,000 to 5,000 pesos annually. These fees cover essential services like street lighting, garbage collection, street maintenance, and public safety services that urban properties receive.
Properties in gated communities or upscale neighborhoods often face higher municipal service fees, sometimes reaching 6,000 to 8,000 pesos annually, due to enhanced services like improved lighting, more frequent garbage collection, and better road maintenance.
Rural properties outside the main city limits generally pay lower municipal service fees, often in the 1,000 to 3,000 peso range, since they receive fewer municipal services. However, these properties might need to pay separately for services like private waste collection or security.
The exact location within Querétaro can also affect your cadastral value assessment, with properties in prime locations like the historic center or near major commercial areas receiving higher assessments that increase your base property tax calculation.
What are the annual maintenance or municipal service fees that get added on top of property tax?
Municipal service fees are mandatory additions to your property tax bill that cover essential city services.
The annual municipal service package typically includes street lighting maintenance, basic road upkeep, public safety services, and administrative costs. These fees are calculated based on your property's location, size, and the level of services your area receives.
For most residential properties in urban Querétaro, these fees range from 2,000 to 5,000 pesos annually. Properties in premium neighborhoods or gated communities can expect fees up to 8,000 pesos due to enhanced service levels.
The fees are broken down into several components: street lighting typically accounts for 30-40% of the total, garbage collection represents another 25-35%, while road maintenance and public safety services make up the remainder. Some neighborhoods with special amenities or higher service standards pay additional fees.
These municipal service fees are non-negotiable and apply to all properties within the municipality, regardless of whether you actually use all the services provided.
Are there waste collection or public lighting fees included in the total yearly bill?
Yes, waste collection and public lighting fees are included in your total annual property tax bill.
These services are bundled into the municipal service fees and appear as line items on your annual property tax statement. Waste collection fees typically range from 500 to 1,500 pesos annually, depending on your property's location and the frequency of collection in your area.
Public lighting fees usually account for 800 to 2,000 pesos of your annual bill, covering the installation, maintenance, and electricity costs for street lighting in your neighborhood. Areas with enhanced lighting systems or decorative lighting pay higher fees.
The waste collection service includes regular household garbage pickup, typically 2-3 times per week in urban areas, plus occasional bulk waste collection. Properties in rural areas might have reduced collection frequency and correspondingly lower fees.
Some municipalities itemize these fees separately on your bill, while others bundle them into a general "municipal services" charge, but both services are always included in the total amount you pay.
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What discounts or reductions are available if you pay early in 2025, and how much can you save in pesos or percentage?
Querétaro offers substantial early payment discounts that can save property owners hundreds or thousands of pesos annually.
The municipality provides a 12% discount for property owners who pay their full annual property tax in January 2025. Additionally, those who pay in February receive an 8% discount, though this is less generous than the January offer.
Beyond the percentage savings, early payers receive valuable insurance coverage at no additional cost. This insurance package covers fire damage, theft, natural disasters up to 100,000 pesos, plus pet civil liability and funeral coverage for the property owner.
Here's what these discounts mean in real peso savings: for a property with 3,800 pesos in annual tax, paying in January saves 456 pesos (bringing the total to 3,344 pesos), while February payment saves 304 pesos (total of 3,496 pesos).
For higher-value properties, the savings become even more significant. A 10,000 peso annual tax bill becomes 8,800 pesos with the January discount, saving 1,200 pesos plus the insurance benefits.
What penalties or surcharges apply if you pay late, and how quickly do they add up?
Late payment penalties in Querétaro accumulate rapidly and can significantly increase your property tax burden.
The municipality charges 1.5% interest per month on unpaid property taxes, which compounds monthly. This means a 3,800 peso tax bill becomes 4,257 pesos after just three months of delays (an additional 457 pesos in interest).
After three months of non-payment, additional surcharges of 5-10% apply on top of the monthly interest. These surcharges are calculated on the original tax amount, not the already-inflated total, but they represent substantial additional costs.
Property owners who fail to pay for a full year face interest charges of approximately 18% (1.5% × 12 months) plus surcharges, effectively doubling their original tax obligation. After two years of non-payment, the municipality can place a lien on the property or even initiate auction proceedings.
The municipality does offer regularization campaigns where late payers can receive up to 50% discounts on accumulated interest and surcharges, but these campaigns are infrequent and require immediate full payment of the reduced amount.
Are there special tax rules for foreigners who own property in Querétaro?
Foreigners pay exactly the same property tax rates as Mexican citizens when owning property in Querétaro.
Querétaro is not located within Mexico's restricted zones (within 50 kilometers of coastlines or 100 kilometers of international borders), so foreign property owners face no additional requirements or fees beyond what Mexican citizens pay.
Foreign owners in restricted coastal or border areas must establish a fideicomiso (trust) through a Mexican bank, which costs $500-1,500 USD annually, but this requirement doesn't apply to Querétaro properties.
However, foreign property owners should be aware that while property taxes remain the same, rental income from Querétaro properties faces different tax treatment. Non-resident foreigners pay a flat 25% withholding tax on gross rental income, while resident foreigners pay progressive income tax rates up to 35% on net rental profits.
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Do rental properties face an additional tax or higher rate compared to owner-occupied homes?
Rental properties in Querétaro pay the same property tax rate as owner-occupied homes.
The 0.19% rate applies equally to all residential properties regardless of whether the owner lives in the property or rents it out. The municipality doesn't distinguish between owner-occupied and rental properties for property tax calculation purposes.
However, rental property owners face significant additional tax obligations on their rental income. Non-resident property owners pay a flat 25% withholding tax on gross rental income, which can represent a substantial ongoing cost.
Resident property owners (both Mexican and foreign residents) pay progressive income tax rates up to 35% on net rental profits after allowable deductions for maintenance, management, and depreciation.
These income taxes on rental revenue are separate from and in addition to the annual property tax, so while the property tax remains the same, the total tax burden for rental properties is significantly higher than owner-occupied homes.
What exemptions or relief programs exist for seniors, disabled owners, or low-income households?
Querétaro offers substantial tax relief programs for vulnerable populations that can cut property tax bills in half.
Seniors, disabled property owners, and qualified low-income households can receive up to 50% reduction on their annual property tax through local assistance programs and national policy initiatives.
The senior citizen discount typically applies to property owners aged 60 or older who meet income requirements and can demonstrate that the property serves as their primary residence. Disabled property owners qualify regardless of age if they can provide medical certification of their disability status.
Low-income household exemptions require documentation of family income levels and are typically available to households earning less than 3-4 times the minimum wage. The exact income thresholds are updated annually and vary based on family size.
To qualify for these programs, property owners must submit applications with supporting documentation including income statements, medical records (for disability claims), identification, and property ownership documents. Applications are typically processed within 30-60 days, and approved discounts apply for the entire tax year.
What would be the total yearly cost in pesos for an average residential property valued at, say, 2 million MXN in Querétaro in 2025?
A residential property with a 2 million peso cadastral value in Querétaro faces total annual costs between 5,344 and 8,344 pesos in 2025.
Here's the breakdown for this property value: the base property tax calculation is 2,000,000 × 0.0019 = 3,800 pesos annually. With the 12% early payment discount for January payment, this reduces to 3,344 pesos.
Municipal service fees add approximately 2,000 to 5,000 pesos annually, depending on the property's specific location within Querétaro. Properties in basic residential areas pay closer to 2,000 pesos, while those in premium neighborhoods or gated communities pay up to 5,000 pesos.
The total annual cost breakdown looks like this: discounted property tax (3,344 pesos) plus municipal services (2,000-5,000 pesos) equals 5,344 to 8,344 pesos total. Property owners who miss the early payment discount would pay 5,800 to 8,800 pesos annually.
This total represents approximately 0.27% to 0.42% of the property's market value annually, making Querétaro property ownership costs extremely competitive compared to other major Mexican cities and international markets.
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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.
Property taxes in Querétaro represent one of the most competitive cost structures for real estate ownership in Mexico's major metropolitan areas.
The combination of low base rates, substantial early payment discounts, and reasonable municipal service fees makes Querétaro an attractive destination for both domestic and international property investors seeking affordable ongoing ownership costs.
Sources
- The LatinVestor - Full List Property Taxes Mexico
- Plalla - How to Calculate Property Tax in Mexico
- Fitch Ratings - Municipality of El Marques Querétaro Rating
- La Voz de Querétaro - Querétaro Property Tax Collection 2025
- Quadratin Querétaro - Property Tax Regularization Facilities
- Start-Ops - Taxes in Mexico Guide for Foreigners
- Mexperience - Closing Costs and Taxes Mexico Property
- PwC Tax Summaries - Mexico Individual Taxes