The Mexico City government, headed by Clara Brugada Molina, presented a proposal to exempt certain cars and trucks from paying vehicle registration fees in 2026.
The proposed decree, which amends and adds various provisions to the Mexico City Tax Code for 2026, details the plan to increase the price range of vehicles eligible for the subsidy.
It’s worth noting that at the beginning of each year, motorists must pay vehicle registration fees and renewal fees, taxes set by the Ministry of Administration and Finance. This has led many to prefer registering their cars in Morelos, where only the renewal fee is required.
Which cars will be exempt from vehicle registration fees in 2026 in Mexico City?
The proposal calls for a 100% exemption from vehicle registration fees for vehicles valued at less than 550,000 pesos, double the current threshold. In other words, the maximum value allowed to receive the subsidy increases by 300,000 pesos, benefiting a much larger number of taxpayers.
This measure comes as a relief to the middle class in the capital.
The limit for motorcycles will remain at 250,000 pesos.
The list of cars whose owners could be exempt from paying the vehicle registration tax in 2026, if the proposal is approved, includes several recent models from brands such as Nissan, Chevrolet, Volkswagen, Toyota, Kia, Mazda, Stellantis, Hyundai, MG, and Honda, among others.
When does the vehicle registration tax exemption take effect in Mexico City?
“No later than January 16, 2026, the Head of Government must issue a general agreement subsidizing the vehicle registration tax referred to in this code,” states the proposal currently under review by Congress.
According to the proposal, the 100% subsidy for vehicle registration fees would apply from January 1 to March 31, 2026.
It is worth noting that the Mexico City government expects to collect a total of 4,582.4 million pesos in vehicle registration and use taxes in 2026, according to the proposed Revenue Law. This represents 172.8 million pesos more than the estimate for 2025, an increase of just 3.9%.
Source: adn40
