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Mexico City Expands 2026 Vehicle Tax Subsidy, Adds Predial Debt Relief in Budget Plan

City leaders say the package holds tax rates steady as lawmakers take up the 2026 proposal.

Overview

  • The tenencia subsidy ceiling will rise to vehicles valued up to 638,000 pesos, with some reports citing 630,000 pesos with VAT, granting a 100% benefit for eligible cars.
  • Officials said eligibility will be based on the vehicle’s invoice value and the benefit can be obtained from January through March 2026 at Treasury offices and service modules.
  • The administration presented a 2026 budget of 313,385.4 million pesos, a 7.5% increase over this year, and stated it will not raise taxes to fund the measures.
  • City estimates project more than 300,000 vehicle registrations next year and roughly 4,582 million pesos in revenue tied to the changes, figures that depend on implementation details.
  • The package includes a property tax debt-regularization program targeting lower-value homes and small businesses—such as a 1,000‑peso one-time payment for a 124,000‑peso home—with additional relief on water bills and discounts of up to 90% for non-serious traffic fines, all pending local Congress approval and final rules.