Economic Goals and Fiscal Benefits in Mexico City
In 2026, Mexico City is set to be the year of investment. Simultaneously, it will also be a unique year for capital taxpayers due to the numerous fiscal benefits they will enjoy.
Under the leadership of Clara Brugada, the government aims to transform Mexico City into a prominent economic and investment hub by the year of the World Cup. Their objectives include strengthening local economy, maintaining sound public finances without imposing new taxes, offering an extensive program of fiscal benefits to support family economies, and minimizing insecurity.
Leveraging the World Cup for Urban Development
The upcoming World Cup, with Mexico City as one of the three host cities, is being capitalized on to implement an ambitious urban development strategy.
Ambitious Economic Goals and Fiscal Benefits
The government’s economic goals appear ambitious, especially in the financial sector. While over 2,000 projects are planned to transform the city, a wide range of fiscal benefits is being offered to various population sectors.
The aim is to generate confidence among the business community and boost Foreign Direct Investment (FDI), which reached 19,000 million pesos by the end of 2025 with a 36% annual growth.
Positive Financial Indicators
Juan Pablo de Botton, the head of administration and finances for Mexico City, asserts that these goals are not only possible but already becoming a reality.
He highlights that public investment has increased by 55% over two years. Furthermore, the government surpassed its projected revenue targets for 2025 by 20%, with income exceeding initial estimates.
Preliminary estimations predict a 7.5% rise in revenue, resulting in approximately 313,000 million pesos for 2026. Despite the extensive fiscal benefits package, public finances will remain healthy, according to de Botton.
Fiscal Benefits Package
The fiscal benefits package includes:
- 8% and 5% discounts on annual advance payment of property taxes in January and February 2026
- Fixed monthly payments of 68 pesos for vulnerable groups and adults aged 60 and above, along with a 30% discount on property taxes based on catastral value and 50% on water bills, as well as 100% off vehicle taxes when paying renewal fees
- An increase in the vehicle tax exemption limit from 250,000 to 638,000 pesos (including VAT) for private vehicles, benefiting more taxpayers who can afford the 2026 renewal fee of 760 pesos from January 1 to March 31, 2026
- Fixed payments and property & water tax discounts for vulnerable groups such as elderly without fixed income, single mothers, divorced or separated women, head-of-household women, widows, spouses of deceased owners, orphaned pensioners, retirees or those with work-related risks and disability, as well as permanent disabled individuals and 60-year-olds
- A fixed bimestral property tax payment of 68 pesos for residential properties valued at up to 2,808,466 pesos and a 30% discount for properties exceeding this limit
Employment Trends in Mexico
Job Losses and Declining Employment:
According to the IMSS, 320,692 formal jobs were lost in December 2025. This confirms the seasonal trend of job losses at year-end, though the decline was smaller compared to previous years.
In 2024, there was a loss of 405,259 jobs, the most significant decline in a comparable month in the last 20 years.
The IMSS notes that December 2025 job losses are the second-lowest in absolute terms and relative terms (excluding the pandemic) over the past decade.
Despite this mixed outlook, Mexico’s employment situation shows a notable decline, explained by the low growth observed over the past seven years.
