Vehicle Taxes

Find out about the different taxes that apply to owners of a vehicle in Mexico…

When a new car is purchased, the following taxes are payable:

  • VAT
  • ISAN (Impuesto Sobre Automoviles Nuevo). Rates of ISAN vary according to the value of the car. Find current ISAN rates (in Spanish)
  • A local vehicle tax – Tenencia (which includes a separate number plate tax, the Refrendo). This is payable by:
    • All businesses on cars that they own
    • Individuals when the price they paid when purchasing the car is above a certain threshold. Owners whose cars have a lower value than the threshold will still be liable for Tenencia if they do not pay the separate tax, the Refrendo, by the end of March in any given year (that is, the end of the third month of the fiscal year)

When a new car is acquired during the course of the year Tenencia (if payable), will be pro-rated until the end of the current fiscal year (i.e. until the end of December).

Details of Tenencia and Refrendo rates are available (in Spanish) on the Mexico City Government Finance website.

How to pay the Tenencia and Refrendo

Tenencia and Refrendo payment in Mexico City takes place as follows:

  1. Go to the Mexico City Government Finance website and input the car registration details, age and model.
  2. The amount payable will be calculated by the system based on these details.
  3. A document is then produced by the system which must be printed and taken to the bank, local (state) Tesoreria office, or kiosco, where payment can be made by cash, debit or credit card.
  4. The printed document, together with the receipt from the bank, constitutes proof that Tenencia payment has been made for the current year.
  5. The same process is applicable when paying the Refrendo.

Note that because Tenencia and Refrendo are local taxes, the rates payable and whether the tax is payable at all, may vary from state to state. Also, how and where to pay them can vary.

Information provided by Cesar Reyes, Contador Público Email Tel: (55) 5915 2065 / (044 55) 1954 5615