Changes to the Mexico City Tax Code for 2025

On December 27, 2024, the decree was published amending, adding and repealing various articles of the Tax Code of Mexico City for the fiscal year 2025, the main changes being the following:

• It is established that, in the event of insufficient budget, the return of any amount in accordance with the aforementioned Code will be made by means of a return certificate.

• The payroll tax rate increased to 4%.

• The property tax rate was updated, as well as the property acquisition tax rate.

• The chapter On the Tax on the Emission of Polluting Gases into the Atmosphere was added, through which a new so-called "ecological" tax is established, which must be paid by individuals or corporations that have fixed sources that emit polluting gases into the atmosphere, whose sum of emissions of carbon dioxide, methane and nitrous oxide, whether individually or any combination of them, is equal to or greater than one ton of carbon dioxide equivalent per month. This tax will be caused at the time the polluting gases are discharged into the atmosphere and will be determined by applying a fee of $58.00 pesos per ton and the proportional part of the fee to the fraction of a ton of carbon dioxide equivalent.

• It is expected that, no later than January 31, 2025, the Head of Government of Mexico City will issue a Property Tax Forgiveness program to owners or possessors of properties located in the neighborhoods of Mexico City that present structural damage caused by cracks and/or differentiated subsidence, and have a technical opinion issued by the Secretariat of Comprehensive Risk Management and Civil Protection regarding the property to which the forgiveness will apply.

• A reduction equivalent to 50% of the Real Estate Acquisition Tax is established, only in the event that the acquisition is derived from an inheritance, provided that one of the following assumptions is met:
  • That the value of the property in question does not exceed the sum equivalent to 27,185 times the daily value of the Measurement and Update Unit.
  • That the granting, signing and request for registration before the Public Registry of Property and Commerce of Mexico City of the award deed be no later than within 5 years of the death of the original owner(s) of the property in question, counted from the date of death indicated in the corresponding certificate.
  • The award of the real estate in question is in favor of the spouse, partner, descendants and/or first-degree ascendants.

• A waiver of payment for Water Supply Fees will be granted starting in 2020 to users of domestic use or domestic and non-domestic use simultaneously (mixed), as well as to markets and public gatherings that have received a water supply that has been insufficient to meet the user's basic needs.