ISABI in Quintana Roo 2026: How Much Will You Pay?

ISABI is the municipal tax a buyer pays when acquiring real estate in Quintana Roo: 4% in Tulum and Playa del Carmen, and 3% in Cancún (Benito Juárez) and Puerto Morelos. It is not necessarily calculated on the price you agree to pay, but on the highest applicable value under the municipality's rules.

Buying property in the Riviera Maya is an exciting investment, but beyond the purchase price there are taxes and expenses you should consider before closing your transaction. Here we explain what ISABI is, how it's calculated, and when you need to pay it.

What Is ISABI?

ISABI (Impuesto Sobre Adquisición de Bienes Inmuebles): Municipal tax paid by the buyer when acquiring real estate in Mexico. It is associated with transferring ownership of a property.

For our international clients, this tax is similar to the Welcome Tax or Land Transfer Tax in Canada and other countries.

Closing Costs: The expenses of the transaction, such as notary fees and registration fees. ISABI is separate from them.

How Much Is ISABI in Quintana Roo?

The rate depends on the municipality where the property is located. Currently, the rates in some of Quintana Roo's most popular destinations are:

Municipality	ISABI Tax Rate
Tulum	4%
Playa del Carmen	4%
Cancún (Benito Juárez)	3%
Puerto Morelos	3%

These rates are applicable as of October 2026 and are subject to changes in local legislation. Additional municipal taxes or surcharges may also apply.

How Is ISABI Calculated?

Here's one of the most important things to understand before purchasing your property: ISABI is not necessarily calculated based on the price you actually pay.

Depending on the municipality, several values may be considered when calculating this tax:

• Commercial Value: the property's value determined through a professional appraisal.
• Cadastral Value: the value registered with the local cadastral authorities.
• Purchase Price: the amount agreed upon between the buyer and seller.
• Declared Value: a previously declared property value, when applicable under local regulations.

As a general rule, ISABI is calculated using the highest applicable value, according to the regulations of the municipality where the property is located.

Commercial Value: The property's value as determined through a professional appraisal.

Cadastral Value: The value registered with the local cadastral authorities.

What Does a Real ISABI Calculation Look Like?

Imagine you're purchasing a condo in Playa del Carmen with the following values:

• Purchase Price: $4,800,000 MXN.
• Appraised Commercial Value: $5,000,000 MXN.
• Cadastral Value: $3,800,000 MXN.

The highest value is the appraised commercial value of $5,000,000 MXN. Since the property is in Playa del Carmen, where the ISABI rate is 4%, the calculation is:

$5,000,000 MXN × 4% = $200,000 MXN.

Therefore, the ISABI tax would be $200,000 MXN, excluding any additional applicable taxes or surcharges. Even though you agreed to purchase the property for $4,800,000 MXN, the tax may be calculated using a higher value. That's why reviewing the property's values before closing is so important.

When and How Do You Pay ISABI?

In most cases, you won't have to handle this process yourself. ISABI is typically included in the closing cost estimate prepared by the Mexican notary public (Notario Público) responsible for formalizing the transaction.

1. Receive the notary's closing cost estimate, which includes ISABI.
2. Pay the corresponding amount to the notary's office.
3. Let the notary file and pay the tax to the municipal authority.

ISABI is generally paid together with other closing expenses, including notary fees, registration fees, and other applicable charges. Although it is commonly paid through the notary's office, it is a municipal tax and is not part of the notary's professional fees.

Why Is It Important to Understand ISABI Before Buying?

It's essential to consider not only the purchase price but also the taxes and expenses associated with the transaction. Having an estimate from the beginning helps you plan your budget, understand how much you'll need for closing, and avoid unexpected expenses.

At Palmera Legal, We're Here to Help

We understand that purchasing property, especially in another country, can raise many questions. That's why we believe every buyer deserves to clearly understand the costs and legal procedures involved in their investment.

At Palmera Legal, we guide you through the entire purchasing process, from reviewing the property's legal documentation to coordinating with the notary and ensuring you receive your final notarized deed.

Thinking about buying property in Quintana Roo? Contact us! We'd be happy to guide you every step of the way.

Frequently Asked Questions

How much is ISABI in Cancún, Playa del Carmen, and Tulum? As of October 2026, the rate is 4% in Tulum and Playa del Carmen, and 3% in Cancún (Benito Juárez) and Puerto Morelos. Rates are subject to changes in local legislation, and additional municipal charges may apply.

Is ISABI calculated on the purchase price? Not necessarily. It is generally calculated using the highest applicable value under the municipality's rules: commercial value, cadastral value, purchase price, or declared value, when applicable.

Who pays ISABI, and when? The buyer pays it. It is typically included in the notary's closing cost estimate, and the notary files and pays the tax to the municipal authority.

Is ISABI part of the notary's fees? No. Even when paid through the notary's office, it is a municipal tax separate from notary fees and other closing costs.

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This article is for informational purposes only and does not constitute legal or tax advice. Every transaction is different. Please consult a specialist about your specific situation.