Quick Answer
Property taxes (predial) in Cabo San Lucas are remarkably low — typically 0.1% to 0.2% of the assessed value per year. A $500,000 property pays approximately $500 to $1,000 USD annually. A $2 million property pays approximately $2,000 to $4,000. This is dramatically lower than US property tax rates which average 1-2% of market value.
Detailed Answer
One of the most pleasant surprises for buyers coming from the United States or Canada is how affordable property taxes are in Los Cabos. Known locally as the predial, annual property taxes in Cabo San Lucas run approximately 0.1% to 0.2% of the government-assessed value — a fraction of the 1-2% rates common in most US states. A $500,000 condo typically owes just $500 to $1,000 per year, while a $2 million beachfront estate pays roughly $2,000 to $4,000 annually.
The predial is paid to the municipal government of Los Cabos, and paying early in January often qualifies you for a 10-20% discount. Payments can be made at the municipal office, through authorized banks, or online. Our team helps every buyer understand their specific tax obligation before closing so there are no surprises. For a full breakdown of annual carrying costs, visit our FAQ hub.
Because the assessed value (catastral) used for tax calculations tends to be lower than market value, effective tax rates are even more favorable than they first appear. This is something our clients consistently highlight as a major advantage of owning in Cabo versus comparable US beach destinations. Explore our community guides for area-by-area cost details.