How much do you pay when selling an inherited home in Mexico?

Selling a home received through inheritance is a common operation in Mexico and, miscalculated, can leave the seller with a much larger tax bill than expected. Here we break down how the ISR on the gain is calculated, the role of the state ISAI, when the homestead exemption can be applied and the notarial costs that must also be budgeted.

Before selling, you must record the title

In Mexico, to sell an inherited home, the property must first be deeded in the name of the seller. That implies:

1. Processing the succession (testamentary or intestate) before a notary public or family court judge.
2. Adjudicating the property to the heirs in a public deed.
3. Registering the adjudication in the Public Property Registry (RPP) corresponding to the municipality.

Until the RPP shows the heirs as new owners, no sale is possible. This step usually takes between 3 and 9 months and costs between 1.5% and 4% of the property's value, depending on the state.

How ISR on the sale is calculated

The Income Tax Law taxes the gain from selling a property. The calculation is made in the deed of sale by the notary, who acts as a withholding agent:

Taxable gain = Sale price − Updated acquisition cost
               − Documented improvements with invoice − Notarial
               and registry costs of acquisition

In the case of an inherited home, the acquisition cost taken into account is NOT zero. The rule is:

• The acquisition cost is the property's value at the time of inheritance adjudication, generally the appraisal presented in the adjudication deed.
• That value is updated with INEGI's INPC from the date of adjudication to the date of sale.
• If improvements (works, expansions) are documented with valid invoices, they are also subtracted.

The applicable rate is that of article 152 of the LISR (annual ISR rate), which is progressive. For simplicity, a typical inherited home operation in CDMX usually leaves an effective rate between 12% and 25% on the gain.

The homestead exemption

If the seller actually resides in the home and certain requirements are met, the article 93 LISR exemption can apply:

• The transaction is exempt up to the equivalent of 700,000 UDIs (around $5.9 million MXN at the close of 2025, varies with UDI).
• It can only be applied once every three years, unless it is proven that the property was used as a permanent home (CFDI of services, INE credential with address, receipts in the seller's name, sworn statement).
• For an inherited home, the three-year period is counted from the seller's last operation with exemption, not from the inheritance.

If the price exceeds the 700,000 UDIs cap, only the excess generates ISR.

ISAI and other local taxes (paid by the buyer)

The Property Acquisition Tax (ISAI) is state-level and paid by the buyer, not the seller. By convention many sellers no longer budget it, but it is worth knowing: in CDMX the progressive rate is between 2% and 4.5%, in Nuevo León around 2% and in Jalisco between 2% and 3.5%. As a seller, you must hand over the predial paid and the utility receipts up to date.

Notarial and registry costs

Borne by the seller usually:

• Bank or private appraisal (between $4,000 and $12,000 MXN).
• Certificate of no debt for predial.
• Certification of no debt for water.
• Notary fees for the deed of sale (sometimes agreed to be paid by the buyer).

Borne by the buyer, in addition to ISAI:

• Notary fees for the new deed.
• Registration in the Public Property Registry.

Step-by-step process to sell an inherited home

1. Close the succession and obtain the adjudication deed registered in the RPP.
2. Request appraisals: bank and/or municipal cadastral for the calculation of ISR and ISAI.
3. Review the possibility of homestead exemption with the notary.
4. Sign the deed of sale: the notary calculates the provisional ISR, withholds and remits to SAT.
5. Submit the information in the annual ISR return for the year in which it was sold.

Numerical example: CDMX, 2026

A house in Coyoacán inherited in 2018 was adjudicated at $3,800,000 MXN according to appraisal. In 2026 it is sold for $7,500,000 MXN. The INPC adjustment brings the cost to approximately $5,250,000 MXN. There are $400,000 MXN in improvement invoices.

Taxable gain = 7,500,000 − 5,250,000 − 400,000 = 1,850,000 MXN
ISR at the annual rate ≈ 12%–18% = approx. 220,000 to 330,000 MXN.

If the seller qualifies for the homestead exemption and the total amount fits within the 700,000 UDIs cap, the operation is exempt.

Common mistakes

• Thinking the acquisition cost is zero because the home was inherited: it is not; the adjudication value is taken.
• Not keeping remodeling invoices: every documented peso reduces the gain.
• Selling without having registered the adjudication in the RPP: the notary cannot pass the deed.
• Using the exemption when it has already been applied in the last three years on another sale.

Want to know what your inherited home is worth before selling it? Get a free Realio valuation in under a minute.