The Tax Barometer is composed of four trip elements: lodging, car rental, meals, and airport arrival and departure.  Each element of the trip is priced according to a standard purchase by a hypothetical "WTTC Traveler" in each destination.  This trip includes the purchase of four nights' lodging, four days' car rental, twelve meals, and one set of international arrival and departure airport charges. Taxes imposed on these purchases are then identified, recorded, and developed into a sector index.  Next, these elements are aggregated into a composite index for the destination, based on the average cost of each element included in the standardized trip.  If you would like more information on the development of the Tax Barometer, please refer to our research methodology.

Rank
Total tax $ for 5-day/4-night trip: $244.55 48
Percentage of total item cost: 16.33% 30
Overall tax index:

174

 48

The first item in the above table represents the combined tax total paid by the WTTC Traveler in each of the four sectors in Mexico City.  The second item (percentage of total item cost) indicates what percentage of the total bill is devoted to taxes.  The last item (overall tax index) reflects the cumulative change in the amount of tax paid in U.S. dollars between June 1994 and June 2002.  The rankings show how Mexico City compares with other Tax Barometer cities; a ranking of 1 is most competitive, while a ranking of 52 is least competitive.

Summary: Mexico City currently has an overall Tax Barometer index of 174, indicating a 74% increase in travel-related taxes since June 15, 1994, the fifth largest increase among all 52 surveyed destinations.  This change can be attributed to increases in each of the four travel sectors.  For a five-day, four-night trip to Mexico City, travelers can expect to pay approximately $245.00 in tourism-related taxes, a total that ranks as the fifth highest among all surveyed destinations, and the highest among North American destinations.

 

Rank
Average price for 4-day rental (mid-size) without taxes: $236.36

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Value added tax/sales tax: 15.00%

-
Total charges for 4-day rental with taxes: $271.81 -
Total tax $ for 4-day rental: $35.45 20
Percentage of total car rental cost: 13.04% 17
Car rental tax index: 150 36


Summary:  Car rental taxes in Mexico City have risen 50% since 1994, an increase that ranks as the 16th highest among all 52 surveyed destinations.  This change can be attributed to an increase in the Mexican consumption tax, which was increased from 10.0% to 15.0% in 1995.  Visitors can expect to pay around $35.00 in taxes for a four-day mid-sized car rental, a total that ranks as the 20th lowest among all surveyed destinations. 

 

Rank
Average price for 4-nights lodging without taxes: $708.19

-
Value added tax/sales tax: 15.00%

-
Hotel tax: 2.00%

-
Total charges for 4-nights lodging with taxes: $828.58

-
Total tax $ for four-nights: $120.39

47
Percentage of total hotel room cost: 14.53%

43
Hotel tax index: 170

49

Summary:  Taxes on hotel rooms in Mexico City have risen 70% since 1994, the fourth largest increase among all 52 surveyed destinations.  This change can be attributed to the introduction of a 2.0% lodging tax in 1996 and a 5.0% increase in Mexico's consumption tax.  For a four-night visit, travelers can expect to pay around $120.00 in taxes, a total that ranks as the sixth highest among all 52 surveyed destinations. 

 

Rank
Average price for 12 restaurant meals without taxes: $345.60 -
Value added tax/sales tax: 15.00% -
Total charges for 12 meals with taxes: $397.44 -
Total tax $ for 12 meals: $51.84 41
Percentage of total restaurant meals cost: 13.04% 34
Restaurant tax index: 150 46

Summary:  As is the case with the hotel and car rental sectors, taxes in Mexico City's restaurant sector rose 50% when the Mexican consumption tax was increased from 10.0% to 15.0% in 1995.  This increased ranks as the seventh highest among all 52 surveyed destinations.  Tax charges on 12 restaurant meals total approximately $52.00, a total that ranks as the 12th highest among all surveyed destinations.

 

Rank
International airport departure tax: MXN 169.83
Tourism tax: MXN 194.79
Total tax $ for international arrival and departure: $36.87 43
Percentage of total trip cost: 2.46% 38
Air passenger tax index: 318 49

( in rank column indicates a tax increase in Tax Barometer No. 11)

Summary:  Taxes on international airline passengers have risen 218% in Mexico City since 1994, an increase that ranks as the fourth highest among all 52 surveyed destinations.  This change can be attributed to several increases in the international airport departure tax, which was most recently increased from MXN 168.24 to MXN 169.83 in 2002, and to the introduction of a new tourism tax in 1999.  Revenue from this tax, originally levied at a rate of MXN 150.00 and collected from arriving international passengers, is earmarked for improving Mexico's immigration service.  The tourism tax was increased to MXN 194.79 in 2002.  The $36.87 in applicable tax charges ranks as the 10th highest among all surveyed destinations.

 

Barometer No. 1: The national consumption tax was increased from 10.0% in 1994 to 15.0% in 1995.  The new tax rates were applied to car rental, lodging and restaurant meals. 

Barometer No. 2: A new lodging tax was introduced at the rate of 2.0%.  This tax is levied along with an existing 15.0% VAT. 

Barometer No. 4: The international airport departure tax was increased from US$ 12.00 to US$ 13.37. 

Barometer No. 5: The international airport departure tax was increased from US$ 13.37 to US$ 15.88. 

Barometer No. 6: The international airport departure tax was increased from US$ 15.88 to US$ 17.13. 

Barometer No. 7: The international airport departure tax was lowered from US$ 17.13 to US$ 16.94. 

Barometer No. 8: The international airport departure tax was increased from US$ 16.94 to US$ 17.51 and the international security charge was increased from MXN 1.18 to MXN 2.118.  A new tourism tax of MXN 150.00 was also introduced, with the revenue earmarked for improving Mexico's Immigration Service. 

Barometer No. 9: The international airport departure tax was increased to MXN 167.39, and the tourism tax was increased from MXN 150.00 to MXN 170.00.

Barometer No. 10:  The international airport departure tax was increased from MXN 167.39 to MXN 168.24, and the tourism tax was increased from MXN 150.00 to MXN 185.00, affecting airline passengers.

Barometer No. 11: Two taxes were increased that affect international airline passengers: the international airport departure tax was increased from MXN 168.24 to MXN 169.83 and the tourism tax was increased from MXN 185.00 to MXN 194.79.  Both increases took effect on March 1, 2002.

 

 

 

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