How Much Are Property Taxes in San Miguel de Allende?

Property taxes in San Miguel de Allende are one of the most pleasant surprises for buyers from the US or Canada. The annual bill on a home worth $500,000 USD is often less than what owners pay monthly in property tax back home.

Here is exactly how predial works.

What Predial Is

Predial is the annual property tax assessed by the municipality (municipio) of San Miguel de Allende. It is based on the property's valor catastral, the cadastral value recorded in the public registry, not on the market value.

Why That Matters

The valor catastral is almost always significantly below the market sale price. On many San Miguel properties it ranges from 20% to 50% of the actual market value. So even before you apply the tax rate, you are taxing a much smaller number than what the property would sell for today.

The Numbers in Practice

Typical annual predial in San Miguel de Allende:

• Modest Centro condo or small home ($200k to $400k USD market value), often $200 to $600 USD per year.

• Mid-range home ($400k to $800k USD), often $400 to $1,200 USD per year.

• High-end home ($800k to $2M+ USD), often $1,000 to $3,500 USD per year.

These are ranges, not promises. The exact figure depends on the catastral value recorded for that specific property, its location & registered size. A buyer can always pull the current predial statement before closing.

The Early-Payment Discount

San Miguel offers a meaningful discount for paying the full year up front in January or February. The percentage varies by year but is typically in the 10% to 15% range, with additional discounts for seniors (INAPAM) & for people with disabilities. Almost every long-term resident pays in January for this reason.

What Predial Does Not Include

Predial is just the municipal property tax. It does not include:

• Water service (SAPASMA), billed separately, modest

• Trash collection, often included or nominal

• Fideicomiso annual fee, if your property is held in a bank trust (most foreign-owned property within the restricted zone), typically $500 to $700 USD per year to the trustee bank

• HOA / condo fees, if applicable

The closing costs guide breaks down the one-time costs at purchase, & the legal foundation piece covers the fideicomiso in detail.

Why It Stays So Low

Two reasons. First, the catastral value is updated infrequently & generally lags market prices by a wide margin. Second, the tax rate itself is low by international standards. The municipality funds itself partly through transfer taxes at sale (ISAI, typically 2% of the declared value), permits & federal transfers rather than annual property taxes.

Can It Change?

Yes, in two ways. The catastral value can be reassessed, particularly when ownership transfers or major permits are filed. And the municipal tax rate can be adjusted year to year. Even so, the absolute numbers remain a small fraction of what owners pay in most North American markets, & no realistic policy change would close that gap in any near-term horizon.

The Bottom Line

For most international buyers, annual carrying costs on a San Miguel home are dominated by utilities, insurance & maintenance, not by property tax. The predial is often the smallest annual line item on the household budget.

When you are running the numbers on a specific property or comparing carrying costs across neighborhoods, reach out & I will pull recent predial figures from comparable homes so you have a real frame, not a guess.