Property tax in Mexico, known as Predial, is famously low compared to the United States or Canada. In 2026, the annual Predial tax typically ranges from 0.1% to 0.5% of the property’s assessed value (which is often much lower than the actual market value). For a standard $300,000 USD home, the annual tax might be as little as $300 to $600 USD. Most municipalities offer significant "early bird" discounts of 10% to 20% if you pay in January or February. However, foreign buyers should be aware of a separate, much higher tax: the Acquisition Tax (ISAI). This is a one-time tax paid at the time of purchase, which ranges from 2% to 5% of the purchase price depending on the state (e.g., 2% in Quintana Roo, 3% in Baja California Sur). Additionally, if you own property in a bank trust (Fideicomiso), which is required for foreigners in the "restricted zone" (within 50km of the coast or 100km of the border), you must pay an annual trust fee to the bank, which usually costs between $450 and $600 USD. While the daily taxes are low, these administrative and acquisition costs are the primary financial considerations for Mexican real estate.