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Mexico City Proposes 2026 Tenencia Exemption for Vehicles Up to 638,000 Pesos

The measure, paired with debt relief plus permanent licenses, now awaits debate in the local Congress.

Overview

  • City officials outlined a 100% tenencia subsidy for cars with invoice value at or below 638,000 pesos with VAT, shifting eligibility to the bill of sale rather than depreciation; motorcycles keep a 250,000‑peso cap.
  • To qualify, owners must pay the annual refrendo of about 760 pesos, clear any prior tenencia arrears, and complete the process between January 1 and March 31, 2026.
  • The government forecasts just over 300,000 vehicles will access the benefit in 2026—about double the current figure—and projects 4,582 million pesos in tenencia revenue.
  • The package includes broad regularization: 100% condonation of predial fines and surcharges, up to 90% discounts on traffic and water penalties with exclusions for confined lanes, injuries or crime, plus one‑time quotas of 1,000 pesos for low‑value homes and 2,000 for small businesses.
  • The Licencia Permanente program continues through 2026, with about one million additional licenses expected to raise roughly 1,500 million pesos for a mobility and transport trust.