Educational information only, not tax advice. Rules and figures change — confirm your situation with a qualified Mexico tax professional before filing.
Mexico · Mexico · Short-term rental taxes
Short-Term Rental Taxes in Mexico
STR income in Mexico is subject to federal Income Tax (ISR) and Value Added Tax (IVA), with platforms like Airbnb required to withhold and remit both taxes on behalf of registered hosts earning under MX$300,000 per year.
The 30-Second Answer
- Register with Mexico's tax authority (SAT) to obtain your RFC (tax ID) — required before any platform can withhold at the reduced rates on your behalf.
- Short-term rentals (stays under 30 days) attract two federal taxes: ISR (Income Tax) at a withheld rate of 4% and IVA (Value Added Tax) at 8%, when your annual gross income stays below MX$300,000 and you are RFC-registered.
- If you are not RFC-registered, platforms must withhold 20% ISR and 100% IVA — a far heavier burden — so registration is essential.
- File your annual ISR declaration with the SAT by April 30 of the following year, reconciling all withheld amounts against your actual tax liability under the Régimen de Plataformas Tecnológicas or the general leasing regime.
Deductions
What Can Mexico STR Hosts Deduct?
Under the general leasing regime, hosts may deduct actual documented expenses against rental income; a simplified 35% blind deduction is also available in lieu of itemising.
Alternatively, hosts under the general leasing regime may claim a flat 35% blind deduction of gross rental income instead of itemising actual expenses — whichever produces the better outcome. All actual deductions require valid Mexican fiscal receipts (CFDIs). Hosts in the Régimen de Plataformas Tecnológicas who accept the flat withholding as final payment cannot additionally deduct expenses against that income.
Filing Calendar
Key Dates & Filing Calendar
Mexico's tax year runs January 1 – December 31; most obligations are monthly (IVA/ISR provisional payments) with an annual reconciliation in April.
Platforms such as Airbnb issue monthly withholding receipts (constancias de retención) that you must keep and reconcile in your annual return.
SAT — Servicio de Administración Tributaria, sat.gob.mx; Ley del ISR Art. 113-A; Ley del IVA Art. 18-J (2024)
Tax Regimes
Two Ways to File Your Mexico STR Income
Hosts can use the simplified digital-platform withholding regime or the general leasing regime with actual deductions — the right choice depends on your gross income and expense level.
Régimen de Plataformas Tecnológicas
Simplified flat withholding via the platform
- Platform withholds 4% ISR + 8% IVA monthly on your behalf — these can be treated as your final tax payment if you elect to do so.
- Dramatically reduces paperwork: no monthly provisional ISR filings required if withholding is accepted as definitive.
- Above MX$300,000 gross, the platform must withhold at higher general rates and you must file monthly declarations.
- You must still file an annual Declaración Anual to reconcile and may owe additional ISR if other income pushes you into higher brackets.
MX$300,000 / year
Régimen de Arrendamiento (General Leasing Regime)
Actual expenses or 35% blind deduction against gross income
- Deduct real costs (repairs, depreciation, interest, management fees) or take a flat 35% blind deduction — whichever is larger.
- ISR is calculated on net income at progressive rates up to 35%; monthly provisional payments are required.
- Full 16% IVA applies to short-term rental income; you can credit IVA paid on expenses against IVA collected.
- Requires more record-keeping: valid CFDIs for every expense and monthly DIOT filings.
No ceiling
Depreciation
Depreciation Rules for Mexico STR Properties
Under the General Leasing Regime, hosts may depreciate the property structure and furnishings annually using SAT-prescribed rates.
| Asset | Typical write-off period | Notes |
|---|---|---|
| Residential building structure | 20 years (5% per year) | SAT allows 5% annual depreciation on the construction value (not land) for residential rental property. |
| Furniture & household appliances | 10 years (10% per year) | Beds, sofas, refrigerators and similar furnishings depreciate at 10% per year under Ley del ISR. |
| Computers & electronic equipment | 3.3 years (30% per year) | Smart TVs, laptops and similar tech items qualify for 30% annual depreciation. |
| Improvements & renovations | Varies (typically 5–10%/year) | Major improvements are capitalised and depreciated at the rate applicable to the underlying asset class. |
Depreciation is only available under the General Leasing Regime where actual expenses are deducted. Land is never depreciable. Depreciation is calculated on the original cost in Mexican pesos; no inflation adjustment is applied for individuals under the leasing regime. Always obtain a CFDI for asset purchases.
When a property is sold, any depreciation previously claimed may reduce the acquisition cost basis, potentially increasing the taxable capital gain (ganancia de capital) subject to ISR at the time of sale.
IVA & Local Lodging Taxes
IVA and Municipal Lodging Taxes on Mexico STRs
Beyond federal ISR, short-term rentals attract federal IVA (VAT) and, in many states and municipalities, a local lodging or tourism tax.
Short-term rental hosts in Mexico face a layered tax structure: federal IVA at 16% (or 8% withheld by platforms for RFC-registered hosts under MX$300,000), plus state/municipal lodging taxes that vary by location. Quintana Roo (Cancún, Tulum, Playa del Carmen) and Jalisco (Puerto Vallarta) are among the most active jurisdictions for local lodging taxes.
Combined effective rate varies by state; federal IVA (8–16%) + ISR (4%+) + local lodging tax (2–5%) is typical
SAT — Ley del IVA Art. 18-J; Ley de Hacienda del Estado de Quintana Roo (Impuesto sobre Hospedaje); sat.gob.mx (2024)
| Booking type | Who collects & remits | What it means for your books |
|---|---|---|
| Federal IVA via Airbnb/VRBO (RFC-registered, under MX$300k) | Platform collects 8% IVA from guest and remits to SAT monthly | You receive net of IVA; platform issues a constancia de retención — keep it for your annual return |
| Federal IVA — direct bookings or above threshold | Host collects 16% IVA from guest and remits via monthly DIOT filing | You must issue a CFDI invoice to the guest and file monthly IVA declarations with SAT |
| State/Municipal Lodging Tax (Impuesto sobre Hospedaje) | Varies — some platforms (Airbnb) collect and remit in certain states; otherwise host remits to state treasury | Check your specific state's rules; Airbnb has agreements with some Mexican states to collect on hosts' behalf |
Local lodging tax rates and collection agreements differ by Mexican state and municipality. Always verify with your local Secretaría de Finanzas or a local accountant. Airbnb publishes its tax collection agreements by jurisdiction on its help centre.
Platforms
How Airbnb & Other Platforms Handle Mexico Taxes
Since 2020, digital platforms operating in Mexico are legally required to withhold and remit ISR and IVA on behalf of RFC-registered hosts.
| Platform | Reports your income | Collects the local lodging tax | Annual earnings summary |
|---|---|---|---|
| Airbnb | Yes — issues monthly constancias de retención to SAT and to host | Yes — in states with collection agreements (e.g. Quintana Roo, CDMX) | Monthly withholding statements available in host dashboard; annual summary for Declaración Anual |
| VRBO / Expedia | Yes — required by Ley del IVA Art. 18-J to withhold and report | Partial — depends on state agreements; verify locally | Annual earnings summary available; monthly constancias issued |
| Booking.com | Yes — subject to same Mexican digital platform tax obligations | Partial — varies by property location and state agreement | Earnings reports available in extranet; consult platform help centre for Mexico-specific tax documents |
Using Multiple Platforms?
If you list on more than one platform, each platform withholds independently. You must aggregate all income and withholdings in your annual Declaración Anual. If combined gross income exceeds MX$300,000, higher withholding rates apply and you must file monthly ISR provisional payments. Keep all constancias de retención from every platform.
Mexico Digital Platform Reporting (Art. 18-J IVA / Art. 113-A ISR)
Mexico's 2020 tax reform (effective June 2020) requires all digital platforms to withhold ISR and IVA at source for Mexican-sourced rental income. This is Mexico's equivalent of DAC7-style platform reporting. Platforms must submit monthly information returns to SAT identifying hosts and amounts paid.
SAT — Ley del IVA Art. 18-J; Ley del ISR Art. 113-A; Reforma Fiscal 2020 (DOF 09/12/2019); sat.gob.mx
Side-by-Side P&L Example
Illustrative example for a host earning MX$250,000 gross annually with MX$60,000 in documented expenses. For educational purposes only.
Record-Keeping
Stay Audit-Ready: What Mexico STR Hosts Must Keep
SAT can audit up to five years back; organised records protect you and support every deduction claimed.
| Keep | How long | Why |
|---|---|---|
| Constancias de retención (monthly platform withholding receipts) | 5 years | Prove ISR and IVA already withheld; essential for annual reconciliation with SAT |
| CFDIs (electronic invoices) for all deductible expenses | 5 years | SAT requires valid CFDIs to substantiate every deduction; paper receipts are not accepted |
| RFC registration documents and SAT portal credentials | Indefinitely | Proof of proper registration; required to access SAT portal and file declarations |
| Bank statements showing rental income deposits | 5 years | Corroborate gross income reported; SAT cross-references platform data with bank records |
| Property purchase deed (escritura) and improvement invoices | Indefinitely + 5 years post-sale | Establishes cost basis for depreciation and future capital gains calculation on sale |
Mexico's SAT increasingly cross-references platform data with host tax filings. Hosts who are RFC-registered but fail to file annual returns may receive automatic discrepancy notices (cartas invitación) from SAT.
Estimator
Short-Term Rental Tax Estimator
Plug in your bookings and costs to see your likely taxable position.
Your Numbers
Total short-term-rental income, before costs.
Allowable running costs, mortgage interest, depreciation and platform fees.
Your top income-tax band, as a percentage.
Estimated tax owed
Income tax on your net rental profit at your marginal rate.
Illustrative estimate. A simplified model to orient you — it is not tax advice. Confirm your situation with a qualified local professional.
Sources & notes
This page is for educational purposes only and does not constitute tax advice. Tax laws change; always verify current rates and thresholds with the SAT or a qualified Mexican tax professional (contador público).
- SAT — Servicio de Administración Tributaria (sat.gob.mx) — Official Mexican tax authority; source for ISR and IVA rates, RFC registration, filing deadlines, and digital platform withholding rules (Art. 113-A ISR; Art. 18-J IVA).
- Ley del Impuesto sobre la Renta (ISR) — Art. 113-A — Establishes withholding rates for income earned through digital platforms: 4% ISR for RFC-registered hosts under MX$300,000; 20% for unregistered hosts. Reforma Fiscal 2020 (DOF 09/12/2019).
- Ley del Impuesto al Valor Agregado (IVA) — Art. 18-J — Requires digital platforms to withhold and remit IVA: 8% for RFC-registered hosts under MX$300,000; 100% of IVA (16%) for unregistered hosts.
- MexTax.com.mx — Transitioning from Vacation Rentals to Long-Term Rentals (2024) — Explains distinctions between short-term and long-term rental tax regimes in Mexico, including VAT exemption for unfurnished long-term rentals.
- SharedEconomyCPA.com — Filing Requirements for Mexico Airbnb Hosts — Overview of ISR and IVA obligations, RFC registration requirement, April 30 annual filing deadline, and the 35% blind deduction option.
Questions
Frequently Asked Questions — Mexico STR Taxes
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