Final Day For Tax Benefits In Mexico City And Edomex

March 31, 2025, marks the final day for residents of Mexico City (CDMX) and the State of Mexico (Edomex) to take advantage of significant tax benefits aimed at easing the financial burden on citizens. The deadline applies to discounts on vehicle ownership tax, as well as on water and property taxes. With inflation affecting many households, these incentives are particularly crucial for vulnerable sectors of the population.

In March 2025, the government of Mexico City introduced a program offering a 100% waiver on vehicle ownership tax, provided that motorists pay the 731 pesos refrendo before the cutoff date. This waiver is applicable only to cars valued at up to 250,000 pesos, excluding VAT and after depreciation has been calculated. Additionally, the program includes various reductions and financing options for property and water payments, aimed at promoting timely compliance with tax obligations.

For vulnerable groups such as seniors, single mothers, and individuals with disabilities, the government has implemented additional benefits. These measures represent a significant support mechanism in light of rising costs of living and accumulated fiscal burdens.

In the State of Mexico, not all municipalities have implemented the same tax benefits. However, cities such as Ecatepec, Toluca, Naucalpan, Nezahualcóyotl, and Cuautitlán Izcalli have launched discount campaigns for early payments of property and water taxes, with reductions ranging from 4% up to 38% for vulnerable sectors. For instance, in Toluca, seniors and pensioners can receive up to a 38% discount on their taxes, while Nezahualcóyotl offers a 6% discount for early annual property tax payments, coupled with a 38% discount on water bills.

The local governments have reiterated that March 31 is the last day to benefit from these incentives. After this date, all payments will be subject to normal rates, which could lead to additional charges or penalties. Authorities are encouraging citizens to consult official websites for online payment options or to visit designated service centers. The use of digital platforms has been pivotal in facilitating these processes and minimizing wait times.

The Secretariat of Administration and Finance (SAF) of Mexico City has made it clear that the 100% discount on vehicle ownership tax is only available until the end of the day on March 31, 2025, at 23:59. Motorists must ensure that their vehicles are valued under 250,000 pesos, including VAT and after depreciation, and must have no outstanding ownership tax debts from previous years. Additionally, vehicle owners must possess a valid Circulation Card when completing the payment process.

Payments can be made at over 8,800 collection points across the city, including treasury kiosks, banks, convenience stores, and department stores, as well as through the free "Tesorería CDMX" app. In the State of Mexico, payments can be made at more than 3,000 commercial locations. To facilitate payments in Edomex, residents are advised to visit the Tenencia Edomex website and follow the necessary steps to obtain the Unique Payment Form (FUP).

For those in the State of Mexico who miss the March 31 deadline, fines can exceed 3,000 pesos. The government has emphasized that timely payment is essential to avoid penalties and to ensure vehicles remain operable. In fact, the fine for failing to pay the vehicle ownership tax can reach 3,394 pesos, which could significantly impact the finances of individuals and families.

The government has also expanded the eligibility for the vehicle ownership tax subsidy in 2025. Previously limited to vehicles valued at 400,000 pesos, this year, the threshold has been raised to 550,000 pesos, allowing more residents to benefit from the tax relief program.

To qualify for the 100% subsidy, applicants must be residents of the State of Mexico, possess a vehicle with a valid license plate, and ensure that their vehicle's value does not exceed the set limits. Additionally, proof of payment for the previous year's ownership tax and the endorsement payment of 917 pesos for cars or 677 pesos for motorcycles is required.

As the deadline approaches, both the government of Mexico City and the State of Mexico are urging citizens to take advantage of these tax benefits. The financial relief offered through these programs is not only a means to encourage compliance with tax obligations but also a necessary support for families facing economic challenges.

In summary, March 31, 2025, is the last chance for residents of CDMX and Edomex to benefit from substantial tax discounts. The initiatives aim to alleviate the financial pressures on citizens and promote timely payment of taxes. With the deadline fast approaching, it is crucial for residents to act quickly to secure these benefits and avoid the repercussions of missed payments.