Buying in Mexico, Simplified
How much is property tax in Puerto Vallarta?
Predial, Mexico's annual property tax, is remarkably low. In Puerto Vallarta the bill is calculated on the cadastral value of your property at a rate of roughly 0.08 percent, so a typical owner occupied home runs about 2,000 to 10,000 Mexican pesos per year, roughly 100 to 500 US dollars. Pay before the end of January and you save 15 percent. For most North American buyers, the yearly property tax on a Mexican home is a fraction of what they pay back home.
Key takeaway: Predial in Puerto Vallarta is about 0.08 percent of the cadastral value, far below typical US or Canadian property tax rates, and it drops further with an early payment discount.
What is predial?
Predial (impuesto predial) is the annual municipal property tax every owner in Mexico pays to the local government. It funds city services and is assessed on the cadastral value, which is the value the municipality assigns to your property based on location, land size, construction type, and characteristics. The cadastral value is set by the municipality and is usually well below the market or commercial value, which is one reason the tax stays low. Predial is charged to the current legal owner and stays with the property, so an unpaid balance follows the home, not the person.
How is predial calculated in Puerto Vallarta?
In Jalisco, the state where Puerto Vallarta sits, predial is calculated by multiplying the cadastral value by a factor of about 0.0008, which works out to roughly 0.08 percent of the assessed value per year. A home with a cadastral value of 3,000,000 pesos would owe around 2,400 pesos annually before any discount. Because the cadastral value is lower than the price you actually paid, the effective rate against your purchase price is even smaller. Riviera Nayarit municipalities such as Bahia de Banderas set their own rates, so a home across the state line is calculated the same way but with the local factor.
Key takeaway: Predial is cadastral value multiplied by the municipal rate. In Puerto Vallarta that rate is about 0.08 percent, and the cadastral value is typically lower than what you paid.
Early payment discounts
Puerto Vallarta rewards owners who pay early in the year. The earlier you pay, the more you save.
| When you pay | Discount |
|---|---|
| January | 15 percent off |
| February | 10 percent off |
| March | 5 percent off |
| April onward | Full amount, and late fees may apply after the deadline |
Discount percentages and deadlines are set by the municipality each year and can change, so confirm the current schedule with the Puerto Vallarta cadastral office or your property manager before you pay.
How and when to pay predial
Predial is billed annually, and most owners pay the full year in the first quarter to capture the discount. You can pay in person at the municipal treasury (Tesoreria) or cadastral office, and Puerto Vallarta also offers online payment through the municipal website using your cadastral account number, which appears on any prior receipt. Keep your paid receipt, because it is often requested when you sell, refinance a bank trust, or update utility accounts. If you own through a fideicomiso or a property manager handles your rental, confirm who is responsible for paying so the bill never lapses.
Key takeaway: Pay in the first quarter to earn the discount, keep the receipt, and confirm whether you or your manager files it.
Predial vs the other property taxes in Mexico
Predial is only one of several property related taxes, and buyers often confuse them. Predial is the small annual holding tax. The acquisition tax (ISAI), paid once at closing, is separate and larger, usually around 2 to 3 percent of the value. Capital gains tax (ISR) applies when you sell. Rental income is taxed separately if you rent the property. Keeping these straight helps you budget accurately: predial is the recurring line item, while the others are event driven.
Understanding your full cost of ownership before you buy prevents surprises. Ask Coldwell Banker La Costa to walk you through the real annual costs on any property you are considering.
Frequently asked questions
How much is property tax on a home in Puerto Vallarta?
For a typical owner occupied home, predial runs about 2,000 to 10,000 Mexican pesos per year, roughly 100 to 500 US dollars, calculated at about 0.08 percent of the cadastral value. Luxury and larger properties pay more, but the rate remains low compared with the United States and Canada.
When is the best time to pay predial?
Pay in January to save 15 percent. February payments save 10 percent and March payments save 5 percent. After that you pay the full amount, and late charges can apply once the municipal deadline passes.
Is predial based on what I paid for the property?
No. Predial is based on the cadastral value assigned by the municipality, which is usually lower than the price you paid. That is why the effective rate against your purchase price is even smaller than the headline percentage.
Can I pay Puerto Vallarta property tax online?
Yes. Puerto Vallarta offers online predial payment through the municipal website using your cadastral account number from a prior receipt. You can also pay in person at the municipal treasury or cadastral office.
Who pays predial if I own through a fideicomiso?
The owner remains responsible for predial even when the property is held in a bank trust. Confirm whether you, your property manager, or your trustee handles the annual payment so it never lapses, since unpaid predial stays attached to the property.
Ask about total ownership costs How to buy in Mexico
This article is for general information only and is not legal, tax, or accounting advice. Predial rates, cadastral values, discount schedules, and deadlines are set by the municipality and change; confirm current figures with the Puerto Vallarta cadastral office or a licensed Mexican accountant. Coldwell Banker La Costa. Founded 1986. The number one Coldwell Banker office in Mexico since 2021, with more than 40 AMPI certified agents and three offices across Banderas Bay, and a member of Coldwell Banker Global Luxury. We are committed to the letter and spirit of Fair Housing. Each office is independently owned and operated.