Mexico's tax headline in the guide is low and qualified: property tax (Predial) at about 0.1% of assessed value, no income tax at state level, and foreign income generally untaxed while you are non-resident for tax. That qualifier does real work — the guide gives no rule for tax-resident status, no national bands and no pension rate, so this page publishes the lines exactly as printed and budgets around the advice the guide recommends.
Predial ~0.1%, no state income tax, and the qualified foreign-income line
The guide's property line is “Predial ~0.1% of assessed value; very low” and its local income line is “None at state level.” Both are stated in full in the next section. The scheme-level headline is the third line of its schemes list: “Foreign income generally untaxed while non-resident for tax.”
Read that line as the guide wrote it. It is a statement about people who are non-resident for tax; it is not a promise that a tax-resident's foreign income is untaxed, and the guide gives no residency test, no national bands and no rates with which to extend it. This page therefore presents the line verbatim and flags the rest as a gap, rather than turning it into a general “Mexico doesn't tax foreign income” claim.
Property and local income taxes the guide does state
Property tax: Predial ~0.1% of assessed value; very low — the guide's “Taxes (property)” line, matched exactly in the site data, in the guide's own wording and base.
Local / regional income tax: None at state level — the guide's “Taxes (income, local)” line, matched exactly in the site data.
At the guide's exchange rate of $1 ≈ MX$16.9 (Mexican peso), local-currency tax values convert at roughly that rate for planning.
The other schemes and incentives the guide names
The guide's schemes list carries the tax line that matters most to movers, in its exact qualified wording: “Foreign income generally untaxed while non-resident for tax.” The qualifier is the point — the guide ties the treatment to being non-resident for tax, and it gives no rule for what happens once you are tax-resident, no national income-tax bands and no rates. This page does not present foreign income as simply “untaxed in Mexico.”
The other schemes are visa thresholds (temporary residency on ~$4,300/mo or ~$73k savings; permanent residency on ~$7,100/mo pension — see the Visa page), not tax schemes.
U.S. expats: the obligations the guide actually covers
Be clear about what this guide does not do: it contains no U.S. filing rules — no mention of U.S. returns, foreign-account reporting, exclusions or credits — and the site data adds none. What the guide does, consistently, is budget and prompt for advice at the points where U.S. obligations bite:
- Before you become resident — the Luxury timeline takes “tax structuring advice before you become resident,” and the Mid-range checklist includes “tax advice taken on residency timing.”
- For retirees — a $1,100 line for tax and estate advice covering double-taxation, pension treatment and wills, plus checklist advice on your tax residency date and the pension treaty.
- Official U.S. channel — the guide lists the U.S. Embassy in Mexico among its official sources, and the Retirement checklist includes registering with the embassy or consulate.
That is the sourced position: take advice before residency, especially on double-taxation and pension treatment. Anything more specific about U.S. obligations would be unsourced here.
Legal and residency basics, with the official sources
The guide's official-law entry point is Cámara de Diputados legal library, listed with its URL in the guide and the site data; the site data also links a Wikipedia law overview from the country page. Everyday legal basics the guide does state: Mexico drives on the right, and after a move the settle stage includes registering your address and opening a bank account. For retirees, the checklist adds preparing a local will and power of attorney. The guide's own closing disclaimer applies to this whole page: figures were current at publication in 2026, tax rules and visa schemes change, and the guide is not legal, immigration or financial advice — verify against the official sources before you rely on them.
Frequently asked questions
How much is property tax in Mexico?
Predial at ~0.1% of assessed value — the guide adds 'very low.' Note the base is assessed value, in the guide's wording.
Is foreign income taxed in Mexico?
The guide's schemes line says foreign income is generally untaxed while non-resident for tax. It gives no rule for tax-resident status and no national rates, so this page does not extend the statement beyond non-resident status.
Is there a state income tax in Mexico?
No. The guide's local income-tax line is 'None at state level.' It publishes no national income-tax bands, so none are quoted here.
What home-country tax obligations does the guide cover?
None in detail — it contains no U.S. filing rules. It budgets $1,100 for retiree tax and estate advice covering double-taxation, pension treatment and wills, and advises taking tax advice on residency timing and structuring before you become resident.
Where can I read the actual Mexican law?
The guide's official source is the Cámara de Diputados legal library (diputados.gob.mx/LeyesBiblio/). Its U.S. official source is the U.S. Embassy in Mexico (mx.usembassy.gov).
Official & reference sources
One labelled partner per page. Paid placements never influence the Mexico liveability score, safety rating or warnings.