Are tourists in Los Cabos being over-taxed?

On July 1, 2025, the authorities of Baja California Sur, done its Secretariat of Finance and Administration, launched what it termed an “Embrace It” tourer interest of 470 pesos (since raised to 488 pesos, oregon astir US $28), mandatory for everyone implicit the property of 12 who arrives successful the authorities by onshore oregon aerial from extracurricular Mexico, and stays for much than 24 hours. The interest is paid digitally astatine an online site, with tourists past fixed a QR codification that tin beryllium shown to immoderate officials who inquire for impervious of payment. 

Despite the bully causes that underlie the implementation of this fee — namely, to fortify biology conservation and amended tourism infrastructure successful the authorities —  it has not been well-received by tourists.

Los Cabos is already the astir costly tourer destination successful Mexico, and that’s earlier each the section and determination taxes that people tourists. (Carlos Gilbert/Unsplash)

In fact, a large galore of them are successfully ignoring the interest owed to inconsistent enforcement. During the six months the interest was successful unit past year, 256 cardinal pesos were collected, which translates to payments from 544,680 tourists. 

However, considering implicit 4 cardinal radical flew into Los Cabos internationally (primarily from the U.S., but besides from Canada, Europe and Central America), that suggests a important percent of the 2 cardinal oregon truthful who flew successful during the second fractional of the year, aft the interest had been initiated, simply didn’t pay. 

Perhaps due to the fact that the request was not decently communicated to them, oregon possibly due to the fact that they’re fed up with what is conscionable different successful an progressively agelong enactment of taxes connected visitors to Los Cabos.

The galore taxes paid by Los Cabos tourists

Yes, the interest is being implemented by Baja California Sur, but it’s fundamentally a taxation connected visitors to Los Cabos, since the overwhelming bulk of planetary tourists (83.2% successful 2025) to the authorities are going lone to that destination. 

Once there, tourists tin expect to beryllium taxed connected virtually each facet of their stay.

This begins erstwhile buying an hose ticket, since a surcharge of astir US $42 is added to the summons terms to relationship for the tourer visa needed to sojourn Mexico. The astir important taxes, however, statesman to heap up erstwhile they cheque into a Los Cabos hotel. There’s the 4% lodging tax, which is utilized to money the Los Cabos Tourism Board and infrastructure improvements. Then there’s the Environmental Sanitation Tax (only astir US $4 per night) and the Impuesto al Valor Agregado (IVA), the 16% income taxation applied to country rates, nutrient and beverage, and different edifice amenities.

Guests staying astatine luxury resorts similar Montage Los Cabos successful the Ruta Escénica typically wage much successful edifice taxes than those successful Cabo San Lucas oregon San José del Cabo, wherever country rates connected mean are lower. (Montage Los Cabos)

But don’t confuse it with the work charge, which is betwixt 15-18% and tin beryllium added successful summation to the IVA connected immoderate purchases. In sum, it’s not uncommon for taxes connected edifice stays successful Los Cabos to full arsenic high arsenic 30%. 

High edifice and Airbnb rates, positive cruise vessel taxes

Did we notation Los Cabos besides has the highest edifice rates successful the country? The mean edifice complaint on the Ruta Escénica, the coastal corridor betwixt Cabo San Lucas and San José del Cabo that’s location to the highest percent of luxury resorts, was US $596 per nighttime arsenic of October 2025. That means connected a azygous night’s stay, taxes could tally upwards of $175. For those staying for a week oregon more, that’s upwards of 1,000 dollars successful taxes connected apical of the modular country rate.

Airbnb rentals are not exempt either, with taxes increasing by 600% successful 2025.

About the lone mode to debar each these taxes utilized to beryllium to sojourn by cruise ship, but arsenic of past July, a taxation had besides been initiated for each cruise passengers to Mexico. Now, it’s lone US $5 per person. However, successful July 2026, it goes up to $10, past to $15 successful 2027, and to $21 successful 2028. 

Why immoderate successful Los Cabos are pushing backmost connected taxes

It’s not conscionable tourists who are upset astir each these charges. It’s besides tourist-related employees and organizations successful Los Cabos that recognize the implications. Namely, that erstwhile tourists get fed up with each of these taxes, they whitethorn determine to walk their abrogation determination else.

“This is thing to beryllium cautious about,” Agustín Olachea Nogueda, president of the Association of Hotel and Tourism Companies successful La Paz, said recently, echoing the sentiments of galore successful Los Cabos. “If we go a precise costly destination, tourists commencement looking astatine different places wherever it’s cheaper to travel.”

Tourists to Los Cabos should beryllium treated similar ATMs, oregon alternatively of Los Cabos’ destinations, specified arsenic San José del Cabo, they whitethorn spell determination else. (Mary West/Unsplash)

“The interest is not astir paying taxes,” a Los Cabos edifice manager clarified to Vallarta Daily erstwhile the Embrace It interest was implemented past year. “It’s astir however galore taxes are stacked connected apical of each different without wide explanations oregon tangible returns. Tourists shouldn’t consciousness similar ATMs.”

The stacking appears to beryllium intensifying, with the cruise vessel tax, Embrace It interest and Environmental Sanitation Tax each added wrong the past 3 years. Nor bash these caller taxes needfully person each the bugs worked retired earlier implementation. When Embrace It took effect successful 2025, some the Los Cabos Tourism Board and the Los Cabos Hotel Association issued astir identical statements to the effect that “No regulatory model oregon operational strategy has been formalized.” 

Problematic aspects of the ‘Embrace It’ tax

The Embrace It taxation has the imaginable to beryllium peculiarly problematic based connected the past of the akin VISITAX successful Quintana Roo. Both taxes, for instance, trust connected the aforesaid Canadian tech company, Travelkore, for outgo processing. 

Implemented successful 2021, 4 years earlier the motorboat successful Los Cabos, VISITAX has experienced galore issues that whitethorn foreshadow ones with Embrace It. These scope from problems getting the online strategy to approve payment, adjacent from valid recognition cards, to scam websites claiming they’re legally authorized to judge payments, frankincense ripping disconnected unwary tourists. As mentioned earlier, however, the existent occupation — astatine slightest from the taxer’s point-of-view — is simply a deficiency of businesslike enforcement. What was expected to beryllium a mandatory taxation has seemingly go lone a voluntary one, with the likelihood of outgo based connected age.

As Yahoo Finance has reported, older tourists successful the 45-59 and 60 and implicit property ranges are by acold the astir apt to wage the Embrace It tax, portion younger tourists successful the 18-29 property bracket are by acold the astir apt to skip paying.

Based connected each the different taxes they person to pay, tin you blasted them? 

Chris Sands is the erstwhile Cabo San Lucas section adept for the USA Today question website 10 Best and writer of Fodor’s Los Cabos question guidebook. He’s besides a contributor to galore websites and publications, including Tasting Table, Marriott Bonvoy Traveler, Forbes Travel Guide, Porthole Cruise, Cabo Living and Mexico News Daily.