Los Cabos Predial Tax: How to Save 20% With Early Payment Discounts

Most Foreign Owners Miss This Discount Every Year

The predial is Mexico's version of property tax. Every property owner in Los Cabos — Mexican or foreign, fideicomiso holder or SA de CV shareholder — owes it annually. The base amount is calculated from your catastral value (the government's assessed value of your property), and it is almost always lower than what Americans or Canadians pay at home. A $500,000 condo might owe $800–$1,500 USD per year. A $2M villa might owe $2,500–$4,500.

But here is the part that surprises people: the municipality of Los Cabos offers a 20% discount if you pay the full year's predial in January or February. Pay in March and you still get 10% off. After March, you pay full price — and if you wait too long, penalties start accruing.

Key Takeaways

• Los Cabos offers a 20% predial discount for full-year payments made in January or February — the City Council extended the 20% window to cover both months for 2026.
• March payments receive a 10% discount. After March, full price applies and late penalties begin.
• Predial can be paid at seven locations across San Jose del Cabo and Cabo San Lucas, Monday through Friday, 8 AM to 5 PM.
• Typical predial amounts: $800–$1,500/year for a $500K condo, $2,500–$4,500 for a $2M villa — significantly lower than US or Canadian property taxes.
• Your property manager can pay on your behalf with a copy of your escritura and predial account number.

How Your Predial Is Calculated

The predial amount is based on your property's catastral value — the assessed value maintained by the Municipal Cadastre Office. This is typically 30–60% of the property's market value, which is why Mexican property taxes feel so low compared to US rates. A property with a market value of $1M USD might have a catastral value of $400,000–$600,000 USD equivalent.

The tax rate applied to the catastral value varies by property type and zone but generally falls in the 0.15–0.35% range. That is dramatically lower than the 1–3% effective rates common in US states like Texas, New Jersey, or Illinois.

Property Tax Comparison: Los Cabos vs. US Cities

Location	$1M Property Annual Tax	Effective Rate
Los Cabos (with 20% discount)	$1,200–$2,400	0.12–0.24%
Austin, TX	$17,000–$20,000	1.7–2.0%
Park City, UT	$6,500–$8,000	0.65–0.8%
Scottsdale, AZ	$5,000–$7,000	0.5–0.7%
Toronto, ON	$6,000–$8,500 CAD	0.6–0.85%

Where to Pay Your Predial in Los Cabos

The Municipal Treasurer's office accepts predial payments at seven locations, open Monday through Friday from 8:00 AM to 5:00 PM:

San Jose del Cabo

• City Hall (Palacio Municipal) — the main office on the plaza
• Municipal Cadastre Office — for questions about assessed values
• Plaza Arámburo one-stop service window — convenient for most residents
• General Directorate of Public Security module — less crowded than City Hall

Cabo San Lucas

• Plaza Tamaral
• Cultural Pavilion of the Republic
• Secretariat of Finance offices

How to Pay If You Are Not in Cabo

Most absentee owners delegate predial payment to their property manager. The process is straightforward:

1. Provide your property manager with a copy of your escritura (property deed) and your predial account number — both of which your notario gave you at closing.
2. Wire or transfer the payment amount plus a small service fee to your property manager.
3. They visit one of the payment locations, pay in cash or by card, and send you the receipt.

Some municipalities in Mexico now accept online payments, but Los Cabos has been slow to implement a reliable digital payment portal. As of 2026, in-person payment remains the most reliable method. If your property management company is organized, they handle this as part of their annual service — it takes them 30 minutes and saves you hundreds of dollars.

Watch Out: Catastral Revaluations Are Coming

While predial rates in Los Cabos have been stable, catastral revaluations are spreading across Mexico. In 2026, Acapulco launched a revaluation strategy that could increase predial charges by up to 20% for 2027. Playa del Carmen approved updated property tax valuation tables. Mexicali raised catastral values 35% for residential and 40% for commercial properties.

Los Cabos has not announced a major revaluation, but the trend across Mexican resort municipalities is clear: as property values have risen dramatically over the past five years, governments are beginning to update their catastral assessments to capture some of that appreciation. The 20% early-payment discount becomes even more valuable if your base assessment increases.

Common Predial Mistakes Foreign Owners Make

• Assuming your closing attorney handles it: Your notario does not pay your ongoing predial. They handled the transfer tax (ISABI) at closing. Predial is your annual responsibility.
• Forgetting about it entirely: If you do not live in Cabo full-time, January comes and goes without a reminder. Set a calendar alert for January 2 every year.
• Not knowing your account number: Your predial account number is on the escritura. If you cannot find it, the Cadastre Office can look it up with your property address.
• Paying late and accruing penalties: Late predial incurs recargos (surcharges) that compound monthly. After a few years of non-payment, the municipality can place a lien on your property.
• Thinking the fideicomiso bank handles it: Your trustee bank does not pay your predial. The bank holds the title; you are responsible for all property taxes and fees.

Keep Your Predial Receipts

When you eventually sell your property, the buyer's notario will require proof of up-to-date predial payments as part of the due diligence process. Missing predial receipts can delay closing. If you are an SA de CV owner, predial receipts are deductible operating expenses against rental income — another reason to pay on time and keep documentation.