Introduction
As Mexicans return to reality after the holiday season, many face financial challenges, especially during the so-called “cuesta de enero” (January financial crunch). One way to alleviate this burden is by taking advantage of available tax discounts for predial, water, and vehicle taxes.
Tax Discounts: Predial, Water, and Vehicle Tax
Paying taxes might be a daunting task, but this month presents an opportunity as state governments promote timely payments with discounts, some of which extend until March. Annual payment also helps avoid penalties.
Water Tax
- Water: A 50% reduction on the bimonthly water rights fee will be applied for property owners belonging to vulnerable groups, as announced by the Government of Mexico City.
Vehicle Tax (Tenencia)
The Secretariat for Administration and Finances (SAF) of Mexico City informs that after completing the refinancing payment, which according to Article 219 of the Mexico City Fiscal Code for 2026 is 760 pesos, a 100% discount on vehicle tax will be granted for cars with a total value (including VAT) not exceeding 638,000 pesos and for motorcycles with a total value (including VAT) not exceeding 250,000 pesos. This benefit applies to physical and legal persons without a profit motive.
The validity period for this support is from January 1 to March 31, 2026. It’s essential to note that there should be no outstanding vehicle tax debts from previous years, and a valid Circulation Card or payment for renewal is required.
“For the first time in 13 years, the limit for exempting vehicle tax is updated and increased from 250,000 to 638,000 pesos, considering VAT, for private vehicles, expanding the benefit to more taxpayers covering the 2026 refinancing for 760 pesos from January 1 to March 31, 2026,” stated the Mexico City Government in a press release.
Payment Options
Tax payments can be made at over 8,800 payment points, highlighting the promotion of interest-free months with participating credit cards. Payment is also possible at treasury kiosks, banks, convenience and department stores, as well as through the “Tesorería CDMX” mobile application and the Secretariat for Administration and Finances’ website.
Key Questions and Answers
- What taxes can I pay with discounts? You can take advantage of discounts for predial, water, and vehicle taxes.
- Who is eligible for the vehicle tax discount? Physical and legal persons without a profit motive can benefit from this discount, provided their car or motorcycle’s total value (including VAT) does not exceed the specified limits.
- When can I take advantage of these discounts? The discounts are available from January 1 to March 31, 2026.
- Where can I make these tax payments? Payments can be made at over 8,800 payment points, including treasury kiosks, banks, convenience and department stores, as well as through the “Tesorería CDMX” mobile application and the Secretariat for Administration and Finances’ website.
