Educational information only, not tax advice. Rules and figures change — confirm your situation with a qualified Mexico tax professional before filing.
Mexico City · Mexico · Short-term rental taxes
Short-Term Rental Taxes in Mexico City
STR income in Mexico City is subject to federal income tax (ISR) and VAT (IVA) at the national level, plus a local lodging tax collected by the Mexico City government, with platforms like Airbnb withholding and remitting several of these taxes on your behalf.
The 30-Second Answer
- You must register with Mexico's federal tax authority (SAT) and obtain an RFC (Registro Federal de Contribuyentes) before earning rental income — this applies to both Mexican residents and foreign owners.
- Federal ISR (income tax) applies to your net rental income at progressive rates up to 35%; platforms like Airbnb withhold ISR at a flat 4% rate if you provide your RFC, or 20% if you do not.
- IVA (Value Added Tax) at 16% applies to STR income; Airbnb collects and remits IVA on accommodation fees directly to the federal government (SAT).
- Mexico City charges a local lodging tax (Impuesto de Hospedaje) of 3% of the accommodation price, which Airbnb collects and remits to the Mexico City government on your behalf.
Deductions
What Can Mexico City STR Hosts Deduct?
Under the 'actual expenses' method, hosts can offset rental income with documented costs. Alternatively, a simplified 35% blind deduction is available without receipts.
All deductions under the actual-expenses method require valid Mexican fiscal receipts (CFDIs). The alternative 35% blind deduction requires no receipts but may result in higher taxable income for high-expense properties. Consult a Mexican contador for your specific situation.
Filing Calendar
Key Dates & Filing Calendar
Mexico uses a calendar tax year (January–December). Most obligations are monthly, with an annual reconciliation filing due in April.
Airbnb withholds and remits IVA and a portion of ISR on your behalf, but you are still responsible for filing monthly and annual declarations with SAT and reconciling any balance owed.
SAT (Servicio de Administración Tributaria) — sat.gob.mx; Airbnb Mexico Tax Help (airbnb.com/help/article/2288)
Tax Methods
Two Ways to Calculate Your Taxable Rental Income
Mexican tax law gives individual STR hosts a choice: deduct a flat 35% of gross income with no receipts required, or deduct all actual documented expenses (which can be more beneficial for high-cost properties).
35% Blind Deduction
Simple flat deduction — no receipts needed
- Deduct 35% of gross rental income automatically — no itemised receipts required.
- Also deduct predial (local property tax) on top of the 35%.
- Remaining 65% of gross income is taxed at progressive ISR rates (up to 35%).
- Simple to calculate but may result in higher tax if actual costs exceed 35% of revenue.
No income ceiling
Actual Expenses Method
Deduct all real costs with valid CFDIs
- Deduct all legitimate rental expenses supported by Mexican fiscal receipts (CFDIs).
- Includes mortgage interest, depreciation, utilities, cleaning, insurance, platform fees, and predial.
- Net taxable income is taxed at progressive ISR rates (1.92%–35% for individuals).
- Requires disciplined record-keeping and a Mexican accountant (contador) to manage monthly CFDI filings.
No income ceiling
Depreciation
Depreciation of STR Assets in Mexico
Under Mexico's ISR law (LISR), rental property owners using the actual-expenses method can depreciate buildings and furnishings over set periods defined by the SAT.
| Asset | Typical write-off period | Notes |
|---|---|---|
| Residential building structure | 20 years (5% per year) | Only the building value is depreciable — land is not. Based on LISR Article 40. |
| Furniture & fixtures | 10 years (10% per year) | Beds, sofas, tables, and similar furnishings used in the rental. |
| Appliances & electronics | 4–10 years (10–25% per year) | Refrigerators, washing machines, air conditioners — rate depends on asset type per LISR. |
| Computers & smart-home equipment | 4 years (25% per year) | Laptops, smart locks, routers used in the rental operation. |
Depreciation rates are set by Mexico's Ley del Impuesto Sobre la Renta (LISR). Only assets used in the rental activity qualify. Keep purchase invoices (CFDIs) for all depreciable assets.
If you sell the property, accumulated depreciation may increase your capital gain for ISR purposes. A Mexican notario will calculate the adjusted cost basis at the time of sale.
Impuesto de Hospedaje
Mexico City Lodging Tax & Federal VAT
STR guests in Mexico City pay both a federal VAT (IVA) and a local lodging tax on top of the accommodation price.
Two separate taxes apply to every STR booking in Mexico City: the federal 16% IVA collected by SAT, and the Mexico City 3% Impuesto de Hospedaje collected by the local government. Airbnb collects and remits both on qualifying bookings.
~19% in lodging/VAT taxes on accommodation price (plus ISR withholding)
Airbnb Mexico Tax Help (airbnb.com/help/article/2288); SAT Mexico (sat.gob.mx); Hostaway Mexico Guide 2026
| Booking type | Who collects & remits | What it means for your books |
|---|---|---|
| IVA 16% on Airbnb bookings | Airbnb collects from guest and remits to SAT | You do not collect IVA separately on Airbnb bookings; Airbnb handles remittance. Record as a pass-through. |
| Mexico City Hospedaje 3% | Airbnb collects from guest and remits to Mexico City government | Airbnb remits this on your behalf for qualifying listings. Verify coverage in your Airbnb transaction history. |
| Direct bookings (non-platform) | Host must collect IVA + hospedaje and remit directly | You must issue a CFDI invoice, collect 16% IVA + 3% hospedaje from the guest, and remit via SAT portal monthly. |
Mexico City launched a mandatory digital STR registration system in May 2026. Hosts who fail to register face fines up to MXN $21,000. Always verify current rates with the Mexico City Secretaría de Finanzas.
Platforms
How Booking Platforms Handle Mexican Taxes
Airbnb is the dominant platform in Mexico City and has formal tax-collection agreements with SAT and Mexico City. VRBO and direct bookings require hosts to handle more obligations themselves.
| Platform | Reports your income | Collects the local lodging tax | Annual earnings summary |
|---|---|---|---|
| Airbnb | Withholds ISR (4% with RFC / 20% without RFC) and reports to SAT | Yes — collects & remits IVA (16%) and Mexico City Hospedaje (3%) | Annual tax summary available in Airbnb account; also issues CFDI-equivalent receipts |
| VRBO / Vrbo | Limited SAT reporting; host responsible for own ISR and IVA filings | Partial — check current VRBO Mexico tax settings; may not remit local hospedaje | Annual earnings summary available in host dashboard; consult a contador for CFDI obligations |
| Direct / other OTAs | No automatic reporting — host must self-report to SAT | No — host must collect IVA + hospedaje and remit directly | No platform summary; maintain your own records and issue CFDIs to guests |
Using Multiple Platforms?
If you list on both Airbnb and VRBO (or take direct bookings), you must aggregate all income in your monthly SAT declarations and annual Declaración Anual. Airbnb's withheld ISR is a credit against your total ISR liability — keep all platform statements and CFDI records to reconcile accurately.
Mexico's Digital Economy Tax Rules
Since 2020, Mexico's tax reform (Reforma Fiscal) requires digital platforms operating in Mexico to withhold ISR and IVA on behalf of hosts and remit directly to SAT. This is Mexico's equivalent of platform-reporting obligations. Airbnb complies with these rules. Hosts must still file their own monthly and annual returns.
Airbnb Help — Tax collection and remittance in Mexico (airbnb.com/help/article/2288); SAT Reforma Fiscal Plataformas Digitales 2020
Example P&L: Actual Expenses vs. 35% Blind Deduction
Illustrative example for a Mexico City STR earning MXN $300,000/year in gross rental income.
Record-Keeping
Stay Audit-Ready: What to Keep and for How Long
SAT can audit up to 5 years back. Keep all fiscal documents organised and accessible.
| Keep | How long | Why |
|---|---|---|
| CFDIs (fiscal receipts) for all income and expenses | 5 years | SAT requires CFDIs to substantiate deductions; without them, expenses are disallowed. |
| Platform payout statements (Airbnb, VRBO, etc.) | 5 years | Needed to reconcile gross income against ISR withheld and IVA remitted by platforms. |
| Monthly SAT declaration receipts (acuses de recibo) | 5 years | Proof that monthly IVA and provisional ISR payments were filed and paid on time. |
| Property purchase deed, notario closing documents, improvement invoices | Indefinitely (until sale + 5 years) | Establishes cost basis for depreciation and future capital gains calculation at sale. |
| RFC registration certificate and RNT / Mexico City STR registration | Indefinitely | Proof of legal registration; required if audited or if platforms request tax ID verification. |
Mexico's SAT increasingly cross-references platform data with host tax filings. Hosts who receive income via Airbnb but do not file monthly declarations are at elevated audit risk. A Mexican contador can automate monthly filings for a modest fee.
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 or legal advice. Tax rules change frequently — always verify current rates and requirements with SAT (sat.gob.mx), the Mexico City Secretaría de Finanzas, and a qualified Mexican contador or tax attorney.
- SAT — Servicio de Administración Tributaria (sat.gob.mx) — Official Mexican federal tax authority. Source for ISR rates, IVA rules, RFC registration, monthly declaration deadlines, and digital-platform withholding rules.
- Airbnb Help Center — Tax collection and remittance in Mexico — airbnb.com/help/article/2288 — Details on Airbnb's collection of 16% IVA and state/city lodging taxes, including Mexico City's 3% hospedaje rate.
- Hostaway — Airbnb Rules in Mexico: Complete 2026 Guide — hostaway.com/blog/airbnb-rules-mexico — Overview of federal and Mexico City STR regulations, registration requirements, and tax obligations as of 2026.
- ChargeAutomation — Mexico Guest Registration Law: Complete 2026 Guide — chargeautomation.com/mexico-guest-registration-law-2026-guide — Details on RNT registration, Mexico City's May 2026 digital registry, and fines up to MXN $21,000.
- SharedEconomyCPA — Filing Requirements for Mexico Airbnb Hosts — sharedeconomycpa.com/blog/mexico-airbnb-hosts — Explanation of ISR calculation methods (35% blind deduction vs. actual expenses), RFC requirement, and April 30 annual filing deadline.
- Ley del Impuesto Sobre la Renta (LISR) — Mexico — Federal income tax law governing depreciation rates (Article 40), progressive ISR rates, and deductible rental expenses for individuals.
- GlobalMortgage.mx — Property in Mexico: Tax Rules — globalmortgage.mx — Overview of predial deductibility, depreciation of closing costs, and interaction with U.S. tax obligations for foreign owners.
Questions
Frequently Asked Questions — Mexico City STR Taxes
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