Taxes for Renting on Airbnb in Mexico 2026: ISR, VAT and ISH Explained

There is a conversation we almost always have after closing a sale, and it almost always comes late: the tax one. The buyer already has his property, has already listed it on Airbnb, starts receiving deposits… and discovers that they are deducting more than he expected. Or worse: that he has been months without declaring something the SAT already knows. Let's make this clear, because in 2026 the margin for improvisation has closed.

The first thing: there are three taxes, not one

Renting through a platform in Mexico generates three distinct obligations, and confusing them is the most common mistake. Two are federal and one is state:

• ISR (Income Tax): taxes your profit from the lease.

• IVA (Value Added Tax): the lodging service generates 16%.

• ISH (Lodging Tax): it is state‑level, each entity charges it separately, and it is the one most often forgotten.

The withholding the platform does (and why your RFC is worth gold)

Since the digital platforms reform, Airbnb and its peers are required to withhold taxes and report them to the SAT. And here comes the data that saves thousands of pesos to those who know it: the rate depends on whether you have your RFC registered on the platform or not.

With a correctly registered RFC, the ISR withholding is 4% and the platform withholds half of the VAT. Without an RFC, the ISR withholding jumps to 20% and the VAT is fully withheld. That difference, on an annual vacation‑rental income, amounts to tens of thousands of pesos. If you have your property on a platform and have not verified that your RFC is correctly captured, stop reading and go check it. It is literally the most profitable tax tip in this article.

The ISH: the one almost nobody declares

In addition to the federal ISR and VAT, each state charges its Lodging Tax. Airbnb withholds it from the guest in some states, but not in all. Where it is not withheld, the obligation to present it to the state treasury is yours. Before you start renting, it is advisable to register with the state treasury, not after the request arrives. Verify the current rate and mechanism for Oaxaca directly with the state authority or your accountant, because they change and not all states operate the same way.

Final or provisional payment: the decision that changes your invoice

If you are an individual under the platforms regime, you have two paths and it is advisable to choose with a calculator in hand:

Final payment. The withholding made by the platform is your final tax. You do not declare anything else for those earnings. It is simple, and works well if you have a single property, few expenses and a good margin. The downside: you pay the full withholding even if you had a weak year.

Provisional payment. You declare normally and deduct expenses. It is more work, but if your property has strong real expenses — administration, maintenance, commissions, services, depreciation — it can significantly lower your ISR. In well‑managed vacation rentals those expenses are usually high, so it is worth running the numbers before deciding.

Our vacation‑rental profitability analysis breaks down those operating costs, which are precisely the ones that can be deductible.

What you can deduct

If you go for provisional payment, keep fiscal receipts for everything: platform commissions, administration fees, cleaning, maintenance and repairs, property tax, utilities (electricity, water, internet), insurance, and the depreciation of the real estate. Without a CFDI there is no deduction, so the habit of requesting an invoice from the first month is part of the business, not bureaucracy.

What changed in 2026 and why it matters

The bottom line: the authority now has almost immediate visibility of what you invoice on the platform. That means any difference between what Airbnb reports and what you declare is an automatic red flag. The era of "no one will notice" is over. The good news is that complying properly is not expensive: a local accountant who understands platforms costs a fraction of what a correction with surcharges costs.

Check the current rates at sat.gob.mx and work with an accountant. This article is for guidance only, it does not replace tax advice: rates and rules change, and your situation depends on your regime.

Are you evaluating buying to rent and want to run the numbers with taxes included? Write to us and we will build the projection, or check the available inventory.

Frequently asked questions

How much does Airbnb withhold in Mexico?

With a correctly registered RFC, the ISR withholding is 4% and the platform withholds part of the VAT. Without an RFC, the ISR withholding rises to 20% and the VAT is fully withheld. Always verify the current rates for the ongoing year.

With the platform's withholding have I already complied?

Not necessarily. If you chose final payment and meet the assumptions, it can be your final tax for those earnings. But the state ISH usually remains outside, and if you have other income you must add it to the annual return. Review your case with an accountant.

Do foreigners who rent their property in Mexico also pay taxes here?

Yes. The income is generated by a property located in Mexico, so it triggers Mexican taxes regardless of the owner's nationality. There may also be obligations in the country of residence; advice on both sides is advisable.

Can I deduct the administration commission of my property?

Yes, if it is related to the activity and you have a CFDI. The same applies to cleaning, maintenance, property tax and utilities. Without an invoice, there is no deduction.