Vacation Rental Platforms Align with New Mexican Tax Rules for 2026

Cancún, Quintana Roo — Major vacation rental platforms including Airbnb, Expedia, and Booking have begun aligning with new tax regulations set by Mexico’s tax authority for 2026, a move that industry experts say could drive some property owners out of the market.

José Manuel Lozano Álvarez, president of the National Association of Professional Vacation Rental Administrators, said the platforms are complying with a fiscal package from the Servicio de Administración Tributaria (SAT) that applies to all vacation rental activity, whether by individuals or companies. The rules include withholding income tax (ISR) and value-added tax (IVA).

“It is very likely that people who do this activity sporadically, or who don’t have much idea how to manage one of these businesses, or whose properties aren’t sufficiently attractive or meet vacation rental characteristics, will be leaving the market,” Lozano Álvarez said.

He noted it is difficult to estimate how many hosts might exit, as platforms measure data based on factors like the number of bedrooms, and a one-bedroom property in the hotel zone differs significantly from one in a residential area like Bonfil.

“Probably the ones that survive will have higher rates and be closer to the beach,” he explained.

Hosts on these platforms must now register as taxpayers with the SAT and obtain a tax identification number (RFC), issue electronic invoices (CFDI) for income received, and pay IVA, ISR, and a lodging tax (ISH) that ranges from 2% to 5% depending on the state.

Lozano Álvarez reiterated that there are no exact statistics on how many vacation rentals are complying, but indicated the SAT has identified behavioral patterns since 2021 and has prioritized 2,393 individual taxpayers and 266 legal entities for fiscal behavior verification.

The SAT has been working to improve tax collection in the vacation rental sector and has issued non-binding criteria to clarify hosts’ tax obligations.