Property Taxes in Los Cabos Are Lower Than You Think (And Easier to Pay!)
It’s no secret that Los Cabos is home to some of the most spectacular real estate on earth, from sprawling hacienda style properties overlooking the ocean to gorgeous beachfront condos and breathtaking hilltop luxury villas.
Discerning travelers and those interested in the secondary home market also know that cape cities Cabo San Lucas and San José del Cabo are destinations on the rise, thanks to a thriving culinary scene driven by celebrated chefs, and upscale amenities like pampering spas and championship-level golf courses.
But what’s not so well-known are the Los Cabos area’s property tax rates, and how well they stack up against those in the U.S.
Differences in Property Tax Rates Between the U.S. and México
Not only are magnificent ocean view homes more readily available, and at much lower average list prices than those of its North American neighbors, but Los Cabos also offers superb value in terms of annual property taxes.
Los Cabos property taxes, known in Spanish as the predial, are assessed annually at only 0.1% of the value of the property at the time of its purchase. That’s well below the rate for all 50 U.S. states. Hawaii, for example, is the U.S. state with the lowest annual property tax rate at 0.27%. Colorado, California and Texas occupy the proverbial middle ground at 0.57%, 0.79% and 1.86%, respectively; while Illinois and New Jersey, at 2.32% and 2.40%, have the highest annual U.S. property tax rates.
Los Cabos is also a value when compared to Canada, easily besting the property tax rates of cities like Vancouver (0.25%) and Toronto (0.64%).
Annual Taxes based on the above for a $500,000 usd home:
- Colorado @ 0.57% = $2,850 usd
- California @ 0.79% = $3,950 usd
- Texas @ 1.86% = $9,300 usd
- Hawaii @ 0.27% = $1,350 usd
- Illinois @ 2.32% = $11,600 usd
- New Jersey @ 2.40% = $12,000 usd
- Vancouver @0.25% = $1,250 usd
- Toronto @ 0.64% = $3,200 usd
- Los Cabos @ 0.1% = $500 usd
How to Accrue Additional Savings on Your Los Cabos Property Taxes
In addition to the built-in savings on property taxes vs. U.S. rates, home owners in Los Cabos are also eligible for additional savings simply by paying their taxes in a timely fashion.
(Photo Credit to CaboCribs)
The annual deadline for property taxes in Los Cabos is March 31, however, the Los Cabos Municipal Council offers discounted rates to those who pay early. Discounts are awarded on a sliding scale: 20% off the predial for payment in January; 15% in February; and 10% in March.
For those considering Los Cabos as a retirement destination, senior citizens over 60 years of age who are also permanent residents qualify for property tax discounts of up to 50% off the standard predial. These savings are available through México’s INAPAM program, which issues a card to enrolled seniors entitling them to discounts on a wide variety of goods and services.
How to Pay Your Los Cabos Property Taxes
No need to stress the payment process, either. It’s completely modernized and conveniently easy. Home owners are able to pay the predial online at http://www.eloscabos.gob.mx/. The only prerequisites are your clave catastral (a 17-digit tax ID number) and a valid credit card.
The Big Picture
Los Cabos continues to take steps to reward home owners who pay their property taxes on time and in full, as well as to streamline the process for maximum ease and convenience. Consider these attractions in tandem with the stunningly beautiful locale, and lifestyle factors like abundant upscale amenities and a lower cost of living, and it’s no wonder that the Los Cabos real estate market has never been hotter than it is right now.
For more information about Los Cabos real estate, please call us today at 011 52 (624) 228-3509 to find out more about buying a dream home in Los Cabos or contact us here, thanks!