Continually updated and detailed guides to living costs in Mexico

Detailed insights about living costs in Mexico

Mexperience publishes information that enables you to calculate your living costs in Mexico and compose a budget based on your individual lifestyle situation.

Don’t just guess at what living in Mexico might cost you. Everybody’s situation is unique, and so too are the costs.

Our regularly-updated insights to the Cost of Living in Mexico help you to create an accurate estimate of your living costs, based on your life stage, individual situation, and lifestyle choices.

Connect to detailed insights with our regularly-updated articles

Start to learn about living costs in Mexico and create a budget based on your own individual lifestyle plans:

• How to calculate your living costs in Mexico
• Cost of utilities and communications
• Typical costs for running your own car in Mexico
• Directory of stores, supermarkets and services in Mexico

See also:

• Read latest updates and insights about living costs in Mexico
• Articles and insights about your money and finances in Mexico

Resources for Living & Lifestyle in Mexico

Mexperience offers you a comprehensive online resource of information and local knowledge to help you discover Mexico, explore choices, find opportunities and plan a new life in Mexico.  Our resources include:

• Detailed guides about relocating to Mexico
• Insightful articles about living and lifestyle in Mexico
• Detailed insights for lifestyle planning and your home life in Mexico
• A regular Mexico Newsletter you can subscribe to for free

This article presents regularly updated directory of all the major stores, supermarkets, and service providers in Mexico with links to their websites. Most stores publish online catalogs and pricing so that you can gauge the cost of products and services.

Most sites listed are presented in Spanish. You can use Google to translate web pages online if you need to: visit Google Translate for details about how to do this.  (If your Spanish is a bit rusty, consider learning or improving your Spanish!)

Supermarkets in Mexico

Mexico is well-served by a range of US-style supermarkets and hypermarkets.  All of them have websites and most offer home-delivery options as well.

• Walmart Mexico
• Superama
• Soriana
• La Comer / Fresko / MEGA
• City Market (Fancy goods/imports)
• HEB Mexico
• La Europea (Fancy goods/imports)
• Chedraui
• Costco (Membership store)
• Sam’s Club Mexico (Membership store)
• Tiendas 3B (Budget store)
• Bodega Aurera (Budget store)

Department stores in Mexico

US-style department stores are situated in Mexico’s larger towns and cities, usually at larger shopping centers and major shopping malls.

• Liverpool
• El Palacio de Hierro
• Sears
• Suburbia
• Sanborns

Home and furniture stores

These are the principal specialist home and furniture stores in Mexico.  Larger towns and cities also have local or regional (often family-owned) stores selling furniture goods.  Check locally for details.

• Elektra
• Viana
• Coppel
• Hermanos Vazquez
• Costco (Membership store)
• The Home Store
• Pottery Barn
• Williams Sonoma
• Home Depot

Pharmacies in Mexico

Mexico has pharmacies everywhere; even in the small towns.  The ones listed below are the principal national chains; local independent pharmacies are also present, especially in smaller towns and villages.  Most offer home delivery: check online, or telephone your nearest branch.

• Farmacias Similares (Generic non-brand medicines)
• Farmacias del Ahorro
• Farmacias Benavides
• Farmacias San Isidro
• Farmacias San Pablo
• Farmapronto
• Farmacias Guadalajara
• Sanborns

Communications services in Mexico

Modern communication services are wide available and reliable in Mexico, and the presence of several operators has kept prices competitive.

• Telmex (Fixed line internet and phone)
• IZZI (Fixed line internet and phone)
• AT&T (Fixed line and mobile/data services)
• Telcel (Mobile, mobile data)
• Movistar (Mobile, mobile data)
• Virgin Mobile (Mobile, operates using Movistar network)
• Starlink (Satellite)
• HughesNet (Satellite)
• ViaSat (Satellite)

Sports stores and gyms in Mexico

Mexicans are fanatics of sports and gyms. Mexico ranks 5^th in the world by number to gyms per capita.  Most of the better-equipped membership gyms are national or regional franchises, although local independent gyms also operate—check locally for details.

Sports stores in Mexico

These are the principal chain stores selling sports clothes and equipment in Mexico.  Some department stores also have sports sections.

• Sportland
• Marti
• Ruben’s

Gyms in Mexico

There are principal gym chains across Mexico.  They usually charge an inscription fee plus a monthly subscription and have minimum contract lengths, usually a year, although they might be negotiable.  Check locally for details.

• Power Gym
• Station24
• SmartFit
• GymPass Mexico

Food diners in Mexico (national chains)

Mexican food diners offer a-la-carte menus and daily specials, although local fondas offer an alternative, with lower prices for their meals.

• Sanborns
• VIPS
• TOKS
• Wings
• Los Bisquets de Obregon

Books and music stores in Mexico

Retail bookstores have diversified in recent years to offer a range of goods including music and DVDs—some also offer coffee shops in-store.

• Gandhi
• La Casa del Libro
• El Sotano
• Librerias de Cristal
• Mixup
• Sanborns

National cinema chains in Mexico

US blockbuster films are popular in Mexico and the two principal chains offer multi-plex centers with screens across the country.

• Cinemex
• Cinepolis

Technology and electronics stores in Mexico

Although a lot of people purchase phones, computers and other electronics online, physical stores continue to ply a brisk trade for these in Mexico.

• Apple Mexico (iPhones, iPads, Mac)
• Samsung Mexico (Android Phones, Domestic electronics)
• Huawei Mexico (Android Phones)
• Mixup (Phones, all brands and networks)
• Telcel Stores (Mobile Phones, Data Modems)
• AT&T Stores (Mobile Phones, Data Modems)
• Movistar Stores (Mobile Phones, Data Modems)
• Radio Shack Mexico (Electronics)
• Steren (Electronics)

Banks in Mexico

Mexico’s banks have networks of branches and ATMs across the country.  These are the principal banks operating in Mexico; most are owned by one of the global banking groups.

See also: Discover Mexico’s banks and the services they offer

• Bancomer
• Banamex
• HSBC
• Scotiabank
• Banorte
• Santander
• Intercam
• CI Banco
• Banco Inbursa
• Banco Azteca

Insurance services

Mexico is well-served by a range of insurance companies; however, if you want to insure a foreign-plated (US/CDN) vehicle in Mexico, you’ll need a special insurance policy—see below for details.

Insuring foreign-plated vehicles

Foreign plated vehicles must be properly insured in Mexico.  Your home-issued insurance policy cannot cover you for third party damages.

• Online quote for auto insurance for foreign-plated cars

Insurance companies in Mexico

All the world’s major insurance companies operate and are represented in Mexico.

• GNP Mexico
• Monterrey
• Royal & Sun Alliance
• DVK
• MetLife

Postal and courier services in Mexico

DHL, FedEx and UPS are the three principal international couriers operating in Mexico, and Estafeta is the largest domestic courier in Mexico.

• DHL Mexico
• UPS Mexico
• FedEx Mexico
• Estafeta
• MexPost

Automobile agencies in Mexico

All major car brands are represented in Mexico including the world’s most luxurious car brands. VW, Nissan, Mazda, Honda, and Kia, are the most popular.

• Volkwagen Mexico
• Kia Mexico
• Ford Mexico
• GM Mexico
• Nissan Mexico
• Mazda Mexico
• Honda Mexico
• Chrysler Mexico
• Buick Mexico
• BMW Mexico
• Audi Mexico
• Mercedes Benz Mexico
• Ferrari Mexico City
• Aston Martin Mexico City
• Rolls Royce Mexico City

App-cab (taxi) companies

If you have a Uber or Didi account based in your home country or Mexico, you can arrange for these app-cab services to transport you in Mexico.  Services are not available in all towns and cities, but they are available in the most popular/populated places.  Check on your phone app for details.

• Uber
• Didi

Housing: short-term rentals

If you’re seeking a short term rental in Mexico, various online marketplaces exist that offer rental of rooms, bungalows, and even entire apartments or homes on a short term basis.

• Airbnb
• Homestay
• Tripping

Housing: long-term rentals

When you’re searching for a long term rental in Mexico, browse the major property portals that offer listings for all types of accommodations on long term basis (usually 6+ or 12+ months).

• MetrosCubicos
• LaMudi
• Vivanuncios
• Inmuebles24
• Propiedades.com
• Homie
• Craigs List Mexico

Housing: house purchases and sales

When you’re searching for a house to buy in Mexico, these are the major property portals that specialize in listing houses and land for sale.

• MetrosCubicos
• Vivanuncios
• Inmuebles24
• Propiedades.com
• LaMundi

Learn about living costs in Mexico

Mexperience publishes a series of articles about living costs to help you consider your choices, research prices, and create a budget that’s based on your personal lifestyle situation.

• How to calculate your living costs in Mexico
• Cost of utilities and communications in Mexico
• The typical costs of running an automobile in Mexico
• Read the latest articles about living costs in Mexico

This article describes the typical costs you need to take into account when you intend to own and run your own private vehicle in Mexico.

Bring you own car, import one, or buy locally?

Foreign residents moving to Mexico from the US or Canada might bring their car with them when they move—but there are rules and restrictions about doing this.

If you bring your foreign-plated vehicle with you to Mexico, you will need to pay for a Temporary Import Permit (TIP)—and note that you can only keep a foreign plated car in Mexico while you are a visitor or temporary resident.  Permanent foreign residents cannot drive a foreign plated car in Mexico except inside one of the of designated ‘Free zones’ near the northern and southern border areas—see this article for details.

If your siltation doesn’t allow you to import a car temporarily to Mexico under the current rules, then you could consider importing your vehicle and getting Mexican license plates for it.  You need to contact a customs agent to do this: the process is complex, carries costs and import duties, and not all vehicles can be imported.

The alternative to importing your own car (temporarily or through a permanent import procedure) is to buy a car locally.  If you do this, we recommend you purchase the vehicle from an established dealer or agency, or from someone you know personally (or a direct personal referral).  If you buy a car locally and use financing, be sure to understand the terms and cost of the car loan.

Car taxes in Mexico

Mexican vehicles must be licensed according to their intended use.  Vehicles for private use need to have current plates, and some Mexican states also charge a Tenencia tax.

All Mexican-plated cars must pay the “Derechos” (license plate) tax. Plate fees and plate-update schedules vary by state—check locally for details.  A plate change typically costs between MXN$2,500 and MXN$5,000 pesos but this plate change doesn’t happen annually.

Some Mexican states also charge an annual Tenencia car tax, that’s based on a percentage of the vehicle’s original purchase price with:

• A minimum value threshold for the vehicle (less expensive vehicles may be exempt); and
• relief for depreciation; so
• If your vehicle is over the threshold, you pay the tax on the current market value (sometimes referred to as the ‘blue book value’ ) of the car.
• This site publishes an article with details of the ‘tenencia’ tax by Mexican state.

Emissions verification testing

Your vehicle will need to undergo regular emissions testing if it’s over a certain age.  Learn more about the emissions tests and vehicle restrictions in and around Mexico City.

The price of gasoline and diesel

Since November 2017, the Mexican gasoline market has been deregulated and individual stations can now charge whatever they want for fuel (competing with other local stations).  Prior to this, the price of gasoline was set each month by the government.

Buying gasoline and using service stations in Mexico (includes a link to current gasoline prices)

Vehicle servicing costs

If you’re living in Mexico full time and don’t return to your home country for regular maintenance, you’ll need to find service options in Mexico to keep your car in good mechanical shape.

Some people will always take their car to a branded dealership; others will look for small independent mechanics to keep their car mechanically maintained.

Branded dealership servicing

Getting your car tuned-up at a branded dealership (“Agencia”) will cost more than getting the work undertaken at a local independently owned repair shop. If your car is new or not too old, it’s sensible to pay the extra costs and get the car serviced at the dealership where the work and parts will be guaranteed for a certain period—and having an agency service record might help to improve the value or at least the marketability of the vehicle if you sell it.

Using a local independent workshop

If you’re driving an older vehicle, choosing the local workshop servicing option will save you money.  The quality of service varies and warranties from independent worships might or might not be honored.  If you use a local workshop, we recommend you ask people you know and trust locally to get a referral from someone you know.  We don’t recommend you take your car for servicing at a local independent service station you don’t know.

The cost of servicing your vehicle in Mexico

Annual car servicing costs will vary depending on your car type and model, its age, the mileage you have accrued, and any special attention it might need, e.g. new brake shoes, new suspension, etc.

As a rule of thumb, a mid-sized car that is one of the popular brands, of an average age, will cost between MXN$10,000 and MXN$15,000 pesos a year to keep regularly serviced at an authorized dealer.  The most popular brands in Mexico are Volkswagen, Nissan, Mazda, Kia, Toyota, and Ford.

If you car is more luxurious, for example, Audi, BMW, Mercedes-Benz, you can expect to pay more as the service and parts for these vehicle brands is more expensive.

Ask around for quotes locally and if you use an authorized dealer, ask around at two or three agencies in the area as they are all independently run franchises and might quote different rates for the same service plan, or some agencies might have special deals on servicing.

Insurance for foreign-plated cars

If you bring a foreign plated car to Mexico, you’ll need to get it adequately insured as your home-country policy will not cover you for third party liability.

Auto insurance that covers third party liability is compulsory in Mexico, but this does not mean that everyone drives around insured.

Driving uninsured is a significant risk in Mexico as, in the event of an accident where someone is injured or killed, the police will get involved and arrest everyone until blame and damages have been apportioned: insurance is crucial in this situation.

Insurance for Mexican-plated vehicles

Insurance costs for Mexican-plated cars vary widely depending on the vehicle, its age, the location where it’s kept, and the drivers who will use it.  You can purchase auto insurance for Mexican-plated vehicles from your bank, a local insurance broker, and a plethora of online portals.

Miscellaneous costs of running a car in Mexico

In addition to obligatory taxes, insurance, fuel, and regular maintenance, you will also need to budget for:

Toll road fees

If you travel intercity, you can choose to use the free federal highways or the tolled autopistas. For speed and safety most drivers choose to take the tolled roads.  In Mexico City there is also an option to use an elevated tolled beltway around the capital.  See this article for more details.  Toll road fees have been rising steadily in recent years and can add significant costs to long distance (or frequent) journeys.

Car parking fees

There is often free parking available somewhere, but many drivers prefer to park in a monitored car park, for the convenience of being close to where they are going, and also for security.

Many supermarkets and shopping malls charge for parking, some offer the first hour free (or discounted) with a purchase at the store.  Fees per hour vary between US$10 and $50 pesos or more.  Some parking lots offer a fixed price for an unlimited time during that day, from your arrival until their advertised closing time.

If you live in an urban area with on-street parking only, you might see local car parking garages advertising a “pension“—in this context, the word in Mexican Spanish describes secure overnight parking. Fees for these vary depending on the city and neighborhood. Fees tend to range from MXN$1,500 – MXN$2,500 per month.  Check locally for details.

Car wash fees

There are lots of dedicated car wash centers in towns and cities across Mexico.  Fees vary depending the size of your vehicle and the “package” you choose—these vary from a basic wash to a full interior and exterior valet including polish and wax.  Package fees tend to range between MX$100 pesos for a basic wash and clean and MXN$1,000 or more pesos if you have a large SUV and want the full works inside and out.

Sometimes people watching over car parks will offer to wash the outside of your car while you are away shopping or eating at the store or restaurant.  They usually charge around MX$50-$100 depending on the size of your vehicle.

Parking and speeding fines

Mexico City and other bigger cities are installing speed cameras and new parking meters with aggressive enforcement of speed limits and parking time limits.  If you get caught out, you’ll need to settle fines before you can get your vehicle (re)tested for emissions, and re-plated, etc. On-street parking meter enforcers use a physical clamp to immobilize your car and don’t remove it until you pay the fine.

Learn about living costs in Mexico

Mexperience publishes a series of articles about living costs to help you consider your choices, research prices, and create a budget that’s based on your personal lifestyle situation.

• How to calculate your living costs in Mexico
• Cost of utilities and communications in Mexico
• Directory of stores, supermarkets and services in Mexico
• Read the latest articles about driving in Mexico

Two calculations are required

There are two calculations you will need to make to determine the financial means you will need to have at your disposal to retire in Mexico:

• the first calculation is related to the financial requirements to qualify for a residency permit in Mexico, and
• the second calculation is related to your real living costs in Mexico that will be determined according to your individual circumstances, personal choices, and lifestyle plans.

Income or savings/investments required to obtain a residency permit

The financial requirements to qualify for a residency permit have risen in recent years.

Monthly income —v— savings/investments to qualify

Unless you intend to lead a ‘high octane’ lifestyle, the monthly income required to qualify for residency in Mexico is considerably higher than the typical costs of living in Mexico.

A corollary of this is that some people who want to retire in Mexico don’t have sufficient monthly income to qualify but do have sufficient income to live here.

If your pension income doesn’t meet the current income requirements, you can instead qualify based your savings/investments—and many people who have been saving throughout their lives will have sufficient savings and investments to qualify, even if their monthly income does not meet the minimum threshold.

The links in the box below contain detailed information to guide you about this. The include information about the current amounts of income or savings/investments you need to demonstrate to qualify for residency under the auspice of ‘economic solvency’ as well as other routes to residency besides ‘economic solvency.’

Income required to sustain your retirement in Mexico

The second calculation you’ll need to make concerns working out your real living costs in Mexico, and these will be determined by your individual circumstances, your intentions, and your lifestyle choices.

The question: “How much does it cost to live in Mexico?” has no specific answer because the amount of money you need to live and sustain yourself here will depend on an assortment of factors, the most common of which include:

• where in Mexico you choose to live: the most popular places also tend to be the most expensive to live in—from rents and house prices to everyday living expenses;
• whether you will rent or buy a home in Mexico;
• whether you have homeowner association fees to pay in addition to other expenses;
• the state of your general health and well-being: healthcare insurance premiums are higher for those with previous ailments, and while medications are less expensive in Mexico, they are still a cost and might have to be paid out of pocket;
• whether you’ll have a car or other vehicle(s) in Mexico to run and service;
• how often you travel, including trips back to your home country;
• what lifestyle choices you make including things like how and where you shop, how often you eat out, how much alcohol you consume (alcohol prices have been rising steadily in recent years), how much you spend on non-essentials, how much you spend on healthcare matters and medications, etc.;
• how much home help and other domestic assistance services you want or need: for example, whether you hire a housekeeper (and how often), a gardener, someone to maintain your swimming pool, if you have one, and other home services, e.g., nurses, or in-home care givers;
• how often you intend to travel within Mexico as well as how often you travel back-and-forth between Mexico and your home country.

Our guide to the cost of living in Mexico is a comprehensive resource that explores real living costs in Mexico and helps you to step back, make an assessment of your situation, and formulate a budget based on your individual circumstances.

Further research and resources

Mexperience offers you a comprehensive online resource of information and local knowledge to help you discover Mexico, explore choices, find opportunities and plan a new life in Mexico.

• Comprehensive guide to living and lifestyles in Mexico
• Articles about lifestyle planning in Mexico
• Articles about living costs in Mexico
• Learn about obtaining residency in Mexico
• Latest articles about retirement in Mexico
• Is Mexico right for your retirement?
• Benefits Mexico offers to retirees
• Discovering potential places to live in Mexico
• A regular Mexico Newsletter you can subscribe to for free

The precise answer to the question of how much it will cost you to live in Mexico varies widely and depends upon a range of factors including:

• your life stage;
• where in Mexico you choose to live
• the lifestyle choices you make as an individual, couple, or family;
• as well as other things like how you organize your routine life situations; and
• how you go about acquiring the things you need or want to buy.

This article provides a summary of the most common expenses foreign residents tend to face while they’re in Mexico.  Some, like residency permit fees, are universal whereas others like school fees are relevant only to families with school-age children.

The influence of your life stage and lifestyle choices

Your cost of living in Mexico will be determined in large part by your life stage, and your lifestyle choices—that also include where in Mexico you choose to live, and your tastes and shopping habits.

If you’re moving to Mexico with a young family, you’ll have different priorities and expenses to a couple moving here to retire.  If you’re on your own, or here with your partner and no children, your expenses will be different to those of a growing family or a retired couple.

Moving abroad offers an opportunity to reconsider your lifestyle choices, routines, habits, and the ways in which you live day-to-day. Moving abroad often requires us to ‘clear the decks’ in the place where we used to live, and this clearing can encourage us to consider different choices that are available, instead of just replicating the way we lived before.

When you come to Mexico to live (or if you’re living here already and wondering if you need to reorganize some aspects of your life situation) you’ll discover that there are many ways to form a lifestyle in Mexico, from the opulent and extravagant, to ways which are simple and humble, and options in-between these.

Residency permits fees

If you’re living in Mexico (or intend to live in Mexico) under the auspice of a Temporary Residency permit, you will have application fees and annual renewal fees to pay.  Learn more about the current cost of residency permits in Mexico.

If you qualify and apply for permanent residency right away, you won’t have renewal fees to pay, but you still need to budget for the initial application costs.

The value of Mexico’s peso

If you rely on a foreign income (or a foreign pension) to support you in Mexico, your local purchasing power will be influenced by regular fluctuations in the foreign currency markets.

Foreign currency markets are in constant flux, and can be volatile at times.  The exchange rate quoted on news reports, currency apps, and internet sites is invariably the ‘mid-market wholesale exchange rate’ which is not available to most people, and you’re likely to get rates which are between 2% and 5% less favorable to you than this when you buy or sell Mexican pesos.

When you’re forming your budget, don’t forget to include any transaction fees you may have to incur to access pesos in Mexico: for example, ATM fees, bank wire fees, and the exchange rate ‘spread’ (the difference between the buy and sell rates) and any other bank charges for dealing foreign currencies.

Larger money transfers, such as moving a block of money from your home country’s bank to a Mexican bank account or moving many thousands of dollars to Mexico to pay for a home purchase may fetch a better exchange rate than smaller transactions.

If you are planning to transfer a block of money from your home country to Mexico, consider comparing your bank’s offered rates and charges with specialist transfer services rates like Wise.com (formerly Transferwise) and XE.com.

The location you choose to live in

Your living costs in Mexico will be partly determined by the location you choose to live in.

Popular locations

Locations in Mexico that are popular with foreign residents usually feature higher house prices and the cost of renting in these places is higher than average, too.  In these places, house prices and rents do not tend to align with local purchasing power, at least in the neighborhoods usually sought by foreign residents. The price of groceries and other services may be higher, too.

Emerging popularity

Places in Mexico that are emerging in popularity with foreign residents are passing through a twilight period, where prices of accommodation are rising but local markets and local prices, including prices for grocery and other essential service, tend to be better aligned with local purchasing power.

Places mostly ‘off the radar’

Locations across Mexico that remain ‘off the beaten path’ for most foreign residents continue to offer the ‘best value’ in terms of house prices,  property rental costs as well as daily living costs. Keep in mind that moving to places which are underexplored will require more effort especially in terms of being able to converse fluently in Spanish and adapting to local culture and community traditions.

Scouting and choosing your accommodations

There is plenty of choice of accommodations across Mexico, for buyers and renters.  Some people come to Mexico and buy a house right away although we recommend that you rent first unless you are already familiar with the area where you intend to buy and live.

Property rentals

When you’re seeking property rentals in Mexico, you’ll find there is something for every budget, from rustic old casitas which may have limited services and suit someone who wants to get away from ‘the grid’ —perhaps as part of a writing, reading, painting, or meditation sojourn— to mansion houses offering every conceivable luxury—and everything in-between.

Rents in Mexico have been rising in recent years, especially in popular neighborhoods of Mexico City and areas frequented by foreign residents. The days when rents were a ‘bargain’ in Mexico appear to have passed, with property owners demanding higher rents and tenants willing to pay a premium to live in certain areas and/or in newer, better appointed and maintained properties.

Property purchase

Mexico’s real estate markets, whether you are looking in the big cities, colonial cities, or beach locations, are highly localized and accurate data regarding prices and historical trends is not easy to come by.

The best way to gauge property values is to undertake some initial research online and be situated locally so that you can talk to people and get a feel for the current market.

Online research using the country’s top property portals (see reference below) is also an effective way to gauge prices.  By undertaking research in person locally, you’ll discover:

• how sellers are valuing their properties;
• what prices sellers are asking for different property types;
• what the people are saying about the property market locally, and what neighborhoods are attractive or emerging as attractive; and
• you might also discover what recent buyers have paid for their home purchase; most transactions close at between 10% and 15% less than advertised asking prices.

Your tastes and shopping habits

Your tastes in food and drinks, shopping habits, how often you eat out and spend on entertainment, and your preferences for durable goods, technology and homewares are key determining factors in your living costs in Mexico.

Food staples, fresh fruit and vegetables, and other daily sundries tend to be less expensive in Mexico than they are in the US, Canada, and Europe.  However, certain types of food (especially those termed ‘gourmet’ and imported food) can be as expensive or even more expensive in Mexico.  Wines and spirits have been increasing in price considerably in recent years—including Mexican-produced wines and spirits.

Durable goods, homewares, and technology —particularly computers and smartphones— vary in price by brand and quality, although generally prices for these can be as much as, or 10%-20% more than, the same item purchased in the US.

If you shop locally at tienditas and markets, you’ll access local market prices, but the range of items on offer will be more limited.  For a wider assortment and range of options, especially imported goods, you’ll need to shop at the larger supermarkets and department stores, or one of the fancy retailers—where prices are higher.

Groceries

Mexico offers ample choice when it comes to buying food and groceries: from open-air markets and fresh food stalls, local convenience stores, and a range of supermarket brands—from the economic to the fancy. Most foreign residents living in Mexico shop at an assortment of grocery stores to buy the things they need and want for their pantry each week.

Dining out in Mexico

How often you dine out will affect your living costs as eating out in Mexico is relatively more expensive than preparing your meals at home using fresh, locally sourced ingredients.  Local fondas can make dining out inexpensive by comparison to eating at restaurants, although even costs for these ‘cocinas economicas’ add up over time.

Clothes, furnishing, and homeware

Most foreign residents living in Mexico will go to one of the country’s big department stores or shopping malls to buy clothes, furnishing and homewares.

Online purchase options are also available: the most popular sites are Amazon Mexico and Mercado Libre.

You can browse stores and online catalogs using the references in our directory of department stores to get a feel for prices of the things you want or will need to buy in Mexico—see the link below.

Your transport choices

How you get around Mexico, and how often you travel outside of Mexico (or between Mexico and your home country if you live here part time) will also have an impact on your living costs.

Getting around locally

Local public transport is plentiful in Mexico, with local minivans, buses, and taxis offering affordable and convenient ways to get around locally if you don’t own a car or want to leave your car at your house in Mexico for certain trips.

Intercity buses

Intercity buses are frequent, affordable, and the “executive class” lines offer top-line comfort on a bus journey.  When the price of toll-road fees and gasoline are taking into account, intercity buses are often the least expensive alternative, especially if there are only one or two people traveling in a car.  Mexico doesn’t have national passenger rail network.

Driving your own car

Running your own car in Mexico gives you flexibility that no other mode of transport offers, but it’s also the most expensive. In addition to the vehicle’s purchase price, car running costs include regular maintenance, cleaning, and repairs, insurance, vehicle fuel, vehicle emissions testing fees, parking fees, and toll road charges.  Finance costs also ought to be considered if you take out a loan to buy the vehicle. Some people live well in Mexico without a car—whether it’s feasible for you depends on your life stage and lifestyle.

Insurance for your lifestyle and activities

When you move to Mexico, part of your budget planning ought to include insurances that will provide coverages for your key activities, assets, and health.  A range of Mexico-related insurance services exist that can mitigate the effect and expense of unforeseen events and mishaps when you’re here.

School fees

If you have children of school age and you intend to send them to a privately-run school in Mexico, then you will need to account for annual school fees. In addition to the monthly fees, you’ll need to budget for annual inscription fees, books and materials, school trips, and other special activities and events.  You’ll also need to consider funding transport options as some, but not all, schools operate bus rounds for their students.

Banking fees

If you have a bank account in Mexico, note that you will have some bank fees to consider.  Fees vary by bank and account type.  You can find extensive information about banks and managing your finances in Mexico here on Mexperience.

Leisure services

If you intend to join a gym, go regularly to the movies, and seek other forms of entertainment, for example theatre, concerts, sports games, etc., then you ought to take these costs into account as you compile your annual budget. See the directory of services to connect to sports stores and gym sites and find their current prices.

Visiting your home country

Some foreign residents only live in Mexico for part of the year, and most foreign residents will travel back to their home country to see family and friends on a (semi)regular basis.  If you’re living in Mexico part-time, or intend to travel back to your home country on a regular basis, then you need to budget for additional travel costs each year, whether that’s airfares or road transport costs—including gasoline and toll road charges.

Property maintenance and security

When you own property in Mexico, you’ll need to factor in property maintenance costs to your annual budget.  Even if you rent in Mexico, you usually need to pay for sundry maintenance that does not constitute ‘structural’ maintenance—e.g., a roof leak.  Sundry maintenance expenses for renters can include, for example, annual water heater maintenance and replacing old and worn-out fittings.

Learn about living costs in Mexico

Mexperience publishes a series of articles about living costs to help you consider your choices, research prices, and create a budget that’s based on your personal lifestyle situation.

• Cost of utilities and communications in Mexico
• Typical costs of running an automobile in Mexico
• Directory of stores, supermarkets and services in Mexico
• Read the latest articles about living costs in Mexico

Some house rentals include the cost of some (or all) utilities in the monthly rent, but most long term rentals don’t include utility costs and require you to pay for most or all utilities separately.

This article summarizes the principal utility costs in Mexico with references to sites that show current rates and prices for utilities and communication services.

Electricity costs in Mexico

Electricity bills in Mexico are dispatched every two months. The electric company is very efficient at sending out technicians to cut your supply off if you are late with payment. If you have a new-style electronic meter, your service can be cut off remotely, without the need for a technician to visit the property.

Current prices: You can find the current rates from this page on the CFE’s web site (Spanish).  Choose the “Domesticas – 1” option for residential electricity prices.

Domestic gas costs in Mexico

Some properties in larger towns or cities can be supplied with gas from a main-feed network in the area that distributes natural gas directly to homes.  However, most residential homes in Mexico use liquefied petroleum gas—a mixture of propane and butane and called Gas LP.

LP gas can be delivered in portable tanks, which are replaced when empty, or pumped from a large tank on a truck into a smaller stationary tank located on a roof, or at some other safe outdoor location on the property.

Current prices: You can find gas prices by region on this official website.  The form asks for your state, city, and municipality. When you submit the form, you’ll be presented with two tables: one for the price of gas per liter—for stationary tanks and mains-fed gas; the second with price of gas per kilo. Portable tanks come in various sizes; the most common is the 30kg tank that equates to about 55 liters of LP gas.

The cost of water in Mexico

How you pay for your home’s water supply will depend on how the water is delivered to the property.  Water in Mexico is delivered via mains-feed, or a communally run feed from local water springs, or a combination of rain collection and local water delivery by truck.

You’ll also need to consider water for drinking—most people use filters to purify the water that comes to their home before drinking it or buy pre-filtered water in 20-liter bottles. See the references below for details about this.

Current prices: Prices for mains-fed water vary by region, city and even neighborhood. Communally run systems usually charge an annual fee.  Water trucks charge per delivery, usually 5,000 or 10,000 liters, and prices vary by location and by season.  For an average residential home you ought to budget for around $500 pesos per month if your water is mains-fed; $500-to-$1000 pesos a month for communal systems; and around $800-$1000 pesos per 10,000 liters of water taken to your home via water delivery truck.

Pay TV and Streaming services in Mexico

If you’re a sports fan, or seeking to access other premium content in Mexico, you’ll need to subscribe to a Pay TV or Streaming service.

• The table below displays a summary of the principal service providers.
• Some providers offer internet access as well as Pay TV packages.
• You can browse latest prices and offers by visiting the providers’ websites—tap/click the name.

Telephone, internet, and mobile phone services

Mexico offers a choice of communication service providers offering fixed line, mobile, mobile data, and satellite communications services.

Fixed line communications

Fixed-line telephone and cable services are widely available across towns and cities in Mexico, although some rural areas may rely on mobile communications only. Monthly fixed-line monthly package fees include all telephone calls across Mexico and to most (but not all) countries around the world—as well as unlimited high-speed internet.

Packages and prices: Package prices start at around $400 pesos a month but can rise to $1,000 pesos a month or more if you want higher internet speeds, and/or more channels in the case of Cable TV services.

Mobile phones

Mexico has an extensively developed mobile phone network and several mobile phone companies competing for customers.  You can choose a monthly contract, that usually includes the cost of a phone, or you can choose a ‘pre-pay’ phone plan that you top up each month, without being tied to a contract.

Packages and prices: Mobile phone packages include a monthly data allowance, and all telephone calls across Mexico, the US and Canada.  Package offers vary: monthly contracts start at around $200 pesos a month, and ‘pre-pay’ top-ups packages range from $50 pesos to $500 pesos.  See the references below for mobile phone companies, connect to their websites and find the latest offers there.

Mobile phone data

You can purchase a special modem and get high speed internet in your home from the mobile data network.

Internet by satellite

If you live in a remote area, or area not served by high speed internet, or you want a backup to your fixed line service, you can get satellite by internet in Mexico, including from Starlink.

Directory of communications companies

These are the principal communication companies in Mexico:

• Telmex (Fixed line internet and phone)
• IZZI (Fixed line internet and phone)
• AT&T (Fixed line and mobile/data services)
• Telcel (Mobile, mobile data)
• Movistar (Mobile, mobile data)
• Virgin Mobile (Mobile, operates using Movistar network)
• Starlink (Satellite)
• HughesNet (Satellite)
• ViaSat (Satellite)

Postal services and couriers

Although the digital age has removed the need for lots of paper envelopes to be sent around the world, there is still a need for paperwork sometimes, and online shopping has made parcel delivery the backbone of the new postal service.

Mexico’s postal service

Despite the ‘bad press’ it receives, Mexico’s postal service is not as poor as many people make it out to be, but it is slow. It is fair to say that the service is more reliable in larger towns and cities than in provincial towns and villages, and it can take weeks for a letter to arrive at its destination, but the post does tend make it to its destination eventually, even to the smaller towns and villages.  To send documents and parcels reliably and in timely fashion, must use a courier service—see next section.

Courier and postal delivery services

If you need to send anything physically by post which is time sensitive and/or valuable, you must use one of the courier services available in Mexico as the national postal service cannot be relied upon in these circumstances.

If you order anything from one of the major online shopping portals, they will use a private courier service with trace-able deliveries to send the item(s) to your home.

Couriers offers competitive rates (although shipping rates worldwide have risen significantly), with modern booking and tracking systems that enable you to purchase your delivery service online, have someone pick it up (or you can take it to a local collection agency) and then track its progress online right through to its final destination.

Principal courier companies in Mexico

The major couriers operating in Mexico are:

• DHL Mexico;
• UPS Mexico;
• FedEx Mexico;
• Estafeta (Mexico’s leading national courier service);
• MexPost (this is the courier division of the national postal service).

Learn about living costs in Mexico

Mexperience publishes a series of articles about living costs to help you consider your choices, research prices, and create a budget that’s based on your personal lifestyle situation.

• How to calculate your living costs in Mexico
• The typical costs of running an automobile in Mexico
• Directory of stores, supermarkets and services in Mexico
• Read the latest articles about living costs in Mexico

Events that led to the creation of the UDI

Unlike the global financial crisis of 2008-2009, or even the Covid crisis of 2020, the Tequila crisis was a home-grown Mexican economic blowout. In 1994, a year of political unrest which included the armed Zapatista uprising in southern Mexico and the assassination in Tijuana of the ruling party’s presidential candidate, foreign investors fled the country with their capital. By the end of the year, central bank reserves were depleted, and the government was unable to pay its debts. The peso was allowed to float against the dollar, bringing about a sharp devaluation.

Commercial banks failed one after another as rising inflation and soaring interest rates left people unable to pay off credit cards, mortgages, car loans, and corporate loans. Thousands of people had their homes or cars repossessed.

UDI: a unit of value protected against inflation

In April of 1995, the Mexican financial authorities came up with a plan that would allow people to meet onerous bank requirements in order to obtain home loans, or to refinance existing mortgage loans.

The UDI was introduced. With an initial value of one UDI to one peso, the investment unit was linked to inflation, and its peso value would rise each day depending on the rise in consumer prices.

The Bank of Mexico publishes the present value of UDI on its website. Daily values for the following two weeks are published on the 10th and 25th day of each month.

How UDIs operate in practice

Aside from mortgage loans, UDIs are used for investments that are protected against inflation, and some official measures still reference UDIs; for example, if you qualify for tax allowances when you sell your home in Mexico, the allowances for any capital gain on the residential property you sell are expressed in UDIs.

Interest charged on government bonds takes into account expectations for inflation over the life of the bond, with the idea that by the time the lender recovers the initial amount borrowed —say five, 10, 20 or even 30 years later— the loss of the peso’s value to inflation has already been factored in through the periodic interest payments.

The interest paid on UDI bonos —that is, government bonds denominated in UDIs— excludes inflation because the UDI’s value in pesos increases constantly. Therefore, UDI bonos carry a lower rate of interest. The government has issued UDI bonos for periods of three, five, seven, 10, 20 and 30 years.

Learn more about money and currency in Mexico

Read our latest articles and guides related to money and finances

• Guide to Money & Banking Services in Mexico
• Latest articles about money and finances in Mexico
• Discover Mexico’s banknotes
• Guide to the Cost of Living in Mexico

The peso went from 20.88 at the end of 2024 to 18 to the dollar by the end of 2025, a noticeable 16% appreciation.

Factors supporting Mexico’s peso

One of the reasons for the peso’s appreciation was the US dollar’s nearly 10% depreciation against a basket of currencies, although the peso also gained about 2% against the euro and 10% against the Canadian dollar.

One of the main concerns at the start of 2025 was that the import tariffs imposed by President Trump would make a huge dent in Mexico’s exports, more than 80% of which go to the US.  As it turned out, exports made under the rules of the US-Mexico-Canada trade agreement, known as USMCA, were exempt.

Although tariffs were imposed on automobiles, steel, and aluminum, the US content in vehicles assembled in Mexico was subtracted, and auto parts were excluded. What that means is that Mexico currently has an advantage over other countries that compete for a share of that US import market.

Inflation ended the year at 3.7%, down from 4.2% in 2024, according to government figures.

Cross-border influences

The sharp rise in silver prices toward the end of 2025 could also have helped the peso, as Mexico is currently the world’s biggest producer of the metal even though the country has only 6% of the world’s total known silver reserves. (Peru, Australia and Russia have the largest known silver reserves.)

The peso continued to benefit from the so-called carry trade, where investors borrow money in currencies that have low interest rates and use that money to invest it in places with higher rates. The Bank of Mexico lowered its benchmark interest rate throughout the year, bringing it down to 7% from 10% at the start of 2025, although the rate remained higher than in many other countries.

Also on the positive side, the Mexican government continued its plans to reduce the budget deficit that the previous administration had increased in its final year when elections were held.

Pressure points on Mexico’s peso

On the negative side for the peso, Mexico’s economic growth slowed down considerably, including a contraction in the third quarter. The economy is widely expected to have grown just 0.4% last year, the worst performance since the 2020 recession.

Despite the slower growth and worries about trade, foreign direct investment increased in the first nine months of the year, reaching $40.9 billion compared with $36.7 billion in the same period of 2024.

Remittances from abroad, mostly from the US, fell 5% in the first 11 months to $56.5 billion, and looked set to post their first full-year drop since 2013.

Mexico’s tourism income increased

Foreign tourism income grew. The number of tourists excluding border areas rose marginally 0.6% to 21.8 million people in the January-October period, with spending up 4.3% at $23.7 billion, although 2% fewer visitors flew into the country. Total visitors including land border crossers rose 13.6% to more than 79 million in the 10-month period.

What to expect for the Mexican peso in 2026?

Mexico’s peso is a free-floating currency on the world’s foreign exchange markets. It’s one of the world’s most-traded currencies and is the most-traded of Latin America’s currencies.

As usual, expectations for the peso over the coming year vary widely. In the central bank’s December 2025 survey, the median estimate among analysts for the exchange rate at the end of 2026 is 19.23 pesos to the US dollar. Estimates range from 17.10 to 20.30 pesos to the dollar.

Exchange-rate predictions are subject to many variables and uncertainties, with consensus estimates shifting as events unfold and the exchange rate fluctuates in response to those events throughout the year. As mentioned in a related article, predicting exchange rates tends be a mug’s game.

Events that might influence the peso in 2026 include the sunset review of the USMCA scheduled for July 2026, and the possibility that it could lead to changes unfavorable to Mexico in the trade pact.

The economy is widely expected to pick up a little from 2025, which could be positive for the currency, and the Bank of Mexico is almost through lowering interest rates. Economists surveyed in December 2025 consider that the central bank will cut the benchmark interest rate by an additional half of a percentage point this year—from 7% to 6.5%.

Aside from the US dollar, the Bank of Mexico publishes indicative daily rates for the peso against a number of other currencies, including the Canadian dollar, the euro, and the yen.

Other movements that influence the peso’s value

Key market movements that determine the peso’s exchange rate in the market include:

• investors who buy pesos to purchase Mexican stocks, bonds or to make other capital or financial investments;
• investors who sell pesos to buy dollars or other currencies and transfer money into foreign investments, or to cover other financial obligations abroad;
• companies that use their earned pesos to buy dollars or other currencies to pay for imports, or to cover foreign obligations;
• companies that sell their foreign currency to buy pesos to pay for exports, or make capital investments and/or cover other financial obligations in Mexico;
• banks and financial institutions that receive foreign currency remittances from abroad and pay those funds out in pesos—this will include Mexicans living abroad sending money home, and foreign pension income and savings transferred here by e.g., retirees living in Mexico;
• and of course, foreign income derived from international travelers which tends to favor Mexico with a surplus given its popular tourism cities and resorts.

Learn more about money and currency in Mexico

Read our latest articles and guides related to money and finances.

• A glance back: Mexico’s peso in 2024
• Guide to Money & Banking Services in Mexico
• A historical perspective on the value of Mexico’s peso
• Latest articles about money and finances in Mexico
• Discover Mexico’s banknotes
• Guide to the Cost of Living in Mexico

How much does it cost to live in Mexico?

This is the most frequently asked question people considering a move to Mexico ask. The answer to this question depends on your life stage, lifestyle choices and expectations…

How much does it cost to live in Mexico?

The basic cost of living in Mexico is lower than that of the US, Canada and Europe; particularly for items such as fruits, vegetables and other food staples; baked goods, and other miscellaneous grocery items.

Local and national public transportation is generally lower in cost than the US and Canada and much lower than in Europe.

Prices for electricity are high relative to local earnings unless your monthly consumption remains below a certain level, in which case government subsidies can help keep your electricity costs quite low.

Telephone service prices are being transformed in Mexico after legal reforms brought in during 2014/2015 communication services are plentiful and competitively priced.

A growing range of items, especially some types of clothing, domestic appliances, audio/visual equipment, technology, e.g. Smart Phones computers, computer software, and cameras, are more expensive than identical items sold in the USA. Cars cost slightly more in Mexico than equivalent models in the US.

In popular locations, Rents in Mexico can be equal to rents found in equivalent-sized US towns or cities. In less popular (or less well known / off the beaten track) towns and cities, you may find good quality accommodation at far lower rents that you would pay for the equivalent space in the US.

Our detailed, free and continually-updated guide about the cost of living in Mexico covers all of these topics, and many more, to help you formulate a budget that’s realistic and based on your individual lifestyle situation and choices.

Detailed Cost of Living Guide – Continually updated

The Mexperience Guide to the Cost of Living in Mexico helps you work out a living budget, whether you plan to live here full or part time, come to work, study, take a sabbatical or retire. The guide will enable you to calculate likely living costs in Mexico based on your individual lifestyle choices.

This latest increase marks the ninth consecutive year that Mexico has implemented double-digit percentage increases in the minimum wage.  The rise in 2025-2026 is 1% higher than the rise in 2024-2025 for the general minimum wage, although in the ‘Northern Border Zone’ the 2026 rise of 5% lower than the 12% it was in 2025.

Mexico began inflation-busting annual increases of the Daily Minimum Wage in 2018 and, since then, the rate has risen 256.6%—from $88.36 to $315.04 Mexican pesos per work day.

Recent history of Mexico’s official daily Minimum Wage rises

As the table below illustrates, Mexico’s official Daily Minimum Wage (DMW) has risen significantly in recent years—far outpacing the rate of official inflation over the same period.

Northern Border Zone

In 2019, Mexico introduced a ‘Northern Border Zone’ (NBZ) that started with a Daily Minimum Wage (DMW) of $177.72 pesos a day.  The ‘Northern Border Zone’ is a defined set of municipalities in Mexican states bordering the USA.

The table below illustrates the changes in Daily Minimum Wage since 2019 for workers situated in the NBZ.

YoY=Year-on-Year.

The effect of minimum wage rises on Mexico residency applications

In July 2025, Mexico’s government announced revised guidelines for residency qualification that included an alignment of the qualification criteria with UMA, instead of the Daily Minimum Wage.

Mexican consulates abroad may increase amounts required in line with the UMA increase (that tends to increase each year with the official rate of inflation) or they may use other criteria to calculate the increase in 2026.  We will update our guide to the financial criteria required to obtain legal residency in Mexico as reliable information becomes available.

Calculating the cost of living in Mexico

Our guide to the Cost of Living in Mexico is a comprehensive source of information about prices in Mexico that can help you to form a detailed budget based on your individual plans and circumstances.

The currency held steady for a couple of months before a raft of events —elections in Mexico and the U.S., the Bank of Mexico cutting interest rates, and changes in Japan’s interest-rate policy, among others— led to a selloff that made it one of the world’s worst-performing currencies, only behind the Argentine peso, the Brazilian real and the Russian ruble.

A steady start, a tumultuous second half

The peso started out the year around 17 to the U.S. dollar, but closed 2024 at 20.88, booking about a 19% depreciation. The exchange rate averaged 18.33 to the dollar in 2024, compared with 17.74 in 2023.

The first blow for the currency was Mexico’s election in June. Claudia Sheinbaum of the ruling Morena party easily won the presidency with 60% of the vote. Her victory was expected, but what the market wasn’t counting on was the Morena party winning enough seats in congress to change the constitution. That sent the peso into a tailspin as former President Andrés Manuel López Obrador had already submitted a slew of bills in February that investors didn’t like—especially major changes in the judicial system, and the elimination of autonomous regulators. These were passed in the fall by the new congress.

Summer events turned-up heat on the peso

Over the summer, Japan raised its ultra-low interest rates, leading to gains in the yen, while the Bank of Mexico was lowering its benchmark interest rate, which started the year at 11.25%, its highest ever. This affected the “carry trade” where investors borrow in a low interest-rate currency and invest in a higher interest-rate one. As one of the most traded emerging market currencies, the Mexican peso benefits from the carry trade.

As summer drew to a close, it also became clear that Donald Trump would likely win the U.S. election. His campaign pledges to deport migrants and to impose tariffs on imports added further pressure on the peso. The response following the election was limited, as it came as no surprise and had already been “priced in.”

Key economic indicators mark slow-down

All this happened as the Mexican economy slowed down from three years of recovery after the 2020 recession. Remittances from the U.S., which are also a source of support for the peso, grew at a slower rate and were up 2.9% at $59.5 billion at the end of November. Gross domestic product, which measures output of goods and services, is expected to have ended the year up about 1.6%—half of what it was in 2023.

Despite all the negative news, the exchange rate stayed under 21 to the dollar, and came nowhere near the 25 that it briefly reached in 2020 at the height of the economic shutdown because of Covid-19. Also on the positive side, inflation slowed some more and ended the year at 4.21%, its lowest since 2020.

Mexico’s tourism sector continued its recovery

Tourism continued to grow, but at a slower rate with the number of tourists excluding border areas up 1.5% at 21.6 million in the January to October period. The overall number of visitors, including border crossers, rose 15% to almost 70 million, with total expenditure estimated at $26.5 billion, or 6.8% more than in the same period of 2023.

What to expect for the Mexican peso in 2025?

Mexico’s peso is a free-floating currency on the world’s foreign exchange markets. It’s one of the world’s most-traded currencies and is the most-traded of Latin America’s currencies.

Expectations for the peso in 2025 vary quite widely, and are seen by many to depend to an extent on how Mexico’s relations with the U.S. fare under Trump, and whether the U.S. follows through on threats to impose trade tariffs, which could affect exports as well as foreign direct investment decisions.

The new government aims to lower the budget deficit which was ramped up significantly last year, that could help support the peso’s value.

In the central bank’s December 2024 survey, the median estimate for the exchange rate at the end of 2025 is 20.53 pesos to the dollar, with estimates ranging from 19 to 22.50.

The same survey estimates that economic growth in Mexico will be 1.1%, and inflation 3.8%.

Exchange-rate predictions are subject to many variables and uncertainties, with consensus estimates shifting as events unfold and the exchange rate fluctuates in response to those events throughout the year.

Other things that influence the peso’s value

Key things that determine the peso’s exchange rate in the market include:

• investors who buy pesos to purchase Mexican stocks, bonds or to make other capital or financial investments;
• investors who sell pesos to buy dollars and transfer money into foreign investments, or to cover other financial obligations abroad;
• companies that use their earned pesos to buy dollars or other currencies to pay for imports or to cover foreign obligations;
• companies that sell their foreign currency to buy pesos to pay for exports or cover financial obligations in Mexico;
• banks and financial institutions that receive foreign currency remittances from abroad and pay those funds out in pesos—this will include foreign pension income and savings transferred here by retirees living in Mexico;
• and of course, foreign income derived from international travelers which tends to favor Mexico with a surplus given its popular tourism cities and resorts.

Aside from the US dollar, the Bank of Mexico publishes indicative daily rates for the peso against a number of other currencies, including the Canadian dollar, the euro, and the yen.

Learn more about money and currency in Mexico

Read our latest articles and guides related to money and finances.

• Guide to Money & Banking Services in Mexico
• A historical perspective on the value of Mexico’s peso
• Latest articles about money and finances in Mexico
• Discover Mexico’s banknotes
• Guide to the Cost of Living in Mexico

This latest increase marks the eighth consecutive year that Mexico has implemented double-digit percentage increases in the minimum wage, although the rise is noticeably lower than the 20%+ year-on-year rises which were made in 2022, 2023 and 2024.

Recent history of Mexico’s official daily Minimum Wage rises

As the table below illustrates, Mexico’s official Daily Minimum Wage (DMW) has risen significantly in recent years—far outpacing the rate of official inflation over the same period.

Northern border region

In 2019, Mexico introduced a ‘Northern Border Zone’ (NBZ) that started with a Daily Minimum Wage (DMW) of $177.72 pesos a day.  The ‘Northern Border Zone’ is a defined set of municipalities in Mexican states bordering the USA.

YoY=Year-on-Year.

The effect of minimum wage rises on Mexico residency applications

The financial criteria required to obtain legal residency in Mexico may be calculated using Daily Minimum Wage figures OR UMA.  For further information about this, read: Mexico’s UMA and Residency Qualification Criteria.

Calculating the cost of living in Mexico

Our guide to the Cost of Living in Mexico is a comprehensive source of information about prices in Mexico that can help you to form a detailed budget based on your individual plans and circumstances.