This table explains which stay/lodging taxes are collected and remitted in Mexico.

 

Jurisdiction name

Tax collected and remitted

Applies to all reservations in:

Collect/remit start date

MexicoValue Added Tax (VAT)
Withholding Tax		the country of MexicoJanuary 1, 2026
Baja CaliforniaLodging Service Taxthe state of Baja CaliforniaJune 1, 2020
Baja California SurLodging Service Taxthe state of Baja California SurJune 1, 2020
ChiapasLoding Service Taxthe state of ChiapasMay 1, 2022
Estado de MexicoLodging Service Taxthe Estado de MéxicoJune 1, 2021
GuerreroLodging Service Taxthe state of GuerreroMarch 1, 2021
JaliscoLodging Service Taxthe state of JaliscoSeptember 1, 2020
Mexico CityLodging Service Taxthe city of Mexico CityFebruary 1, 2020
NayaritLodging Service Taxthe state of NayaritMarch 1, 2022
OaxacaLodging Service Taxthe state of OaxacaFebruary 1, 2021
PueblaLodging Service Taxthe state of PueblaFebruary 1, 2021
Quintana RooLodging Service Taxthe state of Quintana RooJanuary 1, 2020
SinaloaLodging Service Taxthe state of SinaloaMarch 1, 2021
SonoraLodging Service Taxthe state of SonoraMarch 1, 2021
YucatánLodging Service Taxthe state of YucatánFebruary 1, 2021

 

Mexico’s tax withholding requirements

Effective January 1, 2026, Vrbo will be required to comply with Mexico’s newly established income tax and VAT withholding laws.

  • The new laws introduced mandatory tax withholding for all suppliers, including those with a valid RFC (Mexican tax ID).
  • VAT rates charged to guests (16%) will remain unchanged in 2026.
  • The new tax law only adjusts to the party responsible for remitting VAT to Mexico's tax authority, the Servicio de Administración Tributaria (SAT).

 

Income tax withholding

All suppliers (individuals and legal entities) with a valid RFC will have income tax withholding applied to their payouts at the following rates:

  • Individuals: 4% income tax withholding
  • Legal entities: 2.5% income tax withholding

 

VAT withholding

VAT withholding is based on your bank account location:

  • Suppliers with bank accounts in Mexico: Expedia Group collects 16% VAT
    • Expedia Group withholds 50% of the collected VAT and remits it directly to the Mexican tax authorities.
    • Expedia Group provides the remaining 50% of the collected VAT to you for remittance.

 

  • Suppliers with bank accounts outside Mexico: Expedia Group collects 16% VAT
    • Expedia Group withholds 100% of the collected VAT and remits it directly to the Mexican tax authorities.
    • You will not receive VAT for remittance.