ISAI Property Transfer Tax by City
Last updated 5 mai 2026 · Authored by the Mayan Wealth Homes team · Reviewed by Jessica Laines (AMPI / SEDETUS matrícula displayed in footer)
ISAI (Impuesto Sobre Adquisición de Inmuebles) is the local property-transfer tax owed by the buyer at closing. It is set per municipality. In Quintana Roo: Cancún 3.0%, Playa del Carmen 2.5%, Tulum 2.5%, Puerto Morelos 2.0%, Bacalar 2.0-2.5%. The base is the higher of declared price or appraised value. The notario calculates and collects ISAI as part of the closing.
What ISAI is and who pays it
ISAI stands for Impuesto Sobre Adquisición de Inmuebles, the tax on property acquisition. It is a Mexican local tax (state-and-municipality level), not a federal tax. The rate is set by each municipality within ranges established by the state. The buyer pays ISAI, withheld and remitted by the notario at closing.
Because the rate is set at the municipal level, two adjacent properties, one in Cancún (Benito Juárez municipality), one in Puerto Morelos (Puerto Morelos municipality, which became its own municipality in 2016), can have different ISAI rates despite being kilometers apart. This is why generic 'closing costs in Mexico' guides give wide ranges; the right number depends on which municipality the property sits in.
Quintana Roo ISAI rates (2026)
Current ISAI rates by Quintana Roo municipality:
- Cancún (Benito Juárez): 3.0%
- Playa del Carmen (Solidaridad): 2.5%
- Tulum (Tulum municipality): 2.5%
- Puerto Morelos (Puerto Morelos municipality): 2.0%
- Bacalar (Bacalar municipality): 2.0-2.5% (depends on property type and zoning)
- Cozumel: 2.5%
- Holbox (Lázaro Cárdenas municipality): 2.5%
- Felipe Carrillo Puerto: 2.0%
- Mahahual / Costa Maya (Othón P. Blanco): 2.0-2.5%
How ISAI is calculated
ISAI is applied to the higher of: (a) the declared transfer price (what the deed records as the purchase price), or (b) the appraised value (avalúo) by a SAT-registered appraiser, or in some cases (c) the catastral value (the municipality's own tax-roll valuation).
Practical implication: you can't reduce ISAI by under-declaring the deed price below the appraised value. If you declare $300K but the appraisal says $400K, ISAI is calculated on $400K. Foreign buyers occasionally try to reduce ISAI by negotiating a lower-declared price; the notario will refuse if the appraisal exceeds it.
Why Cancún is highest, Puerto Morelos lowest
Cancún (Benito Juárez municipality) has the highest ISAI rate in the state at 3.0%. The municipal government uses ISAI as a major revenue source given Cancún's transaction volume.
Puerto Morelos became its own municipality in 2016 (split off from Benito Juárez) and adopted a 2.0% ISAI rate to attract investment to the new municipality. This is one of several reasons Puerto Morelos has been a quiet outperformer for snowbird-priced condos in the 2018-2025 window: lower closing costs net to the buyer + reef-protected coastline + small-town feel.
Tulum and Playa del Carmen sit at 2.5%, the state-typical mid-band. Bacalar varies 2.0-2.5% depending on property type; lakefront residential typically 2.5%, agricultural / outlying 2.0%.
Worked example: USD 400K condo, three cities
Same hypothetical USD 400K condo in three different municipalities, ISAI alone:
- Cancún: 3.0% × $400K = $12,000
- Tulum: 2.5% × $400K = $10,000
- Puerto Morelos: 2.0% × $400K = $8,000
How ISAI fits into total closing costs
ISAI is the largest single line item in foreign-buyer closing costs. On a typical 6-10% total closing-cost figure, ISAI represents 2-3 percentage points, roughly a third of the total. The other major components are notario fees (1.0-1.5%), fideicomiso (USD 2,000-3,500 fixed), registry, appraisal, predial reconciliation, and HOA pre-payments.
Our per-city closing-costs guide and our Closing Costs Calculator both use the city-specific ISAI rate so the foreign-buyer total estimate is accurate to the municipality, not to a state average.
Frequently asked questions
Is ISAI deductible against future capital gains?
Yes, ISAI paid at acquisition becomes part of your cost basis (with proper factura/receipt). When you eventually sell, your basis includes original purchase price + ISAI + facturable improvements + closing-related costs. This reduces the gain on which Mexican capital gains is calculated under the 35%-on-net election.
Can ISAI be financed?
No, in practice. ISAI is due at closing in cash. Mexican mortgage financing is rare for foreign buyers and typically does not include ISAI. Plan to have the full ISAI cash on hand at closing.
Are there ISAI exemptions or discounts?
Limited. Some municipalities offer one-time discounts for certain property types (low-income housing, first-time buyers under municipal programs), these typically don't apply to foreign buyers in the residential market. Some states have homestead-style discounts; Quintana Roo's framework is straightforward without significant exemption pathways for foreign-buyer residential.
What if the appraisal comes in higher than the price I'm paying?
ISAI is calculated on the higher of declared price or appraisal. If the appraisal exceeds your declared price, ISAI is on the appraisal. This is rare in practice (appraisers in this market typically come in at or near the declared price), but it can happen on under-priced deals or off-market transactions.
Does the seller pay any ISAI?
No. ISAI is buyer's tax exclusively. The seller pays Mexican capital gains (withheld at closing by the notario), but the property-transfer tax is on the buyer side.