Cost of Living in Mexico: 2026 Budget Guide for Expats

Living in Mexico costs $1,200-5,000+ USD monthly depending on lifestyle: budget expats spend $1,200-1,800 (modest apartment, home cooking, public transit), comfortable living costs $2,000-3,000, and premium lifestyles run $3,500-5,000+. Housing is the largest expense at $500-1,800 USD monthly, while healthcare costs 70% less than the US with doctor visits at $30-60 USD.

One of the most common questions from people considering a move to Mexico is "How much does it really cost to live there?" The answer varies significantly based on your lifestyle, location, and personal preferences. This guide breaks down the major expense categories to help you plan your budget for 2026.

Housing Costs

Housing is typically the largest expense for expats in Mexico, and prices vary dramatically between locations.

Rental Costs by City

• Mexico City (nice neighborhood): $800-1,500 USD/month for a 1-2 bedroom apartment
• Playa del Carmen: $700-1,400 USD/month for a furnished condo
• Tulum: $900-1,800 USD/month (higher due to tourism demand)
• Cancun: $600-1,200 USD/month
• Guadalajara: $500-1,000 USD/month
• San Miguel de Allende: $800-1,600 USD/month
• Merida: $500-1,000 USD/month

Compare living costs across destinations like Mexico City, Playa del Carmen, and Cancun.

What Affects Rental Prices

• Furnished vs. unfurnished (furnished typically 20-30% more)
• Proximity to tourist areas or beaches
• Building amenities (pool, gym, security)
• Long-term vs. short-term leases
• Whether you rent from a local or through expat-focused agencies

Utilities and Services

Monthly utility costs are generally lower than in the US or Canada:

• Electricity (CFE): $30-80 USD/month (higher with air conditioning)
• Water: $10-25 USD/month
• Gas (for cooking/hot water): $15-30 USD/month
• Internet (high-speed fiber): $25-50 USD/month
• Cell phone plan: $15-40 USD/month
• Streaming services: Often cheaper than US prices

Food and Groceries

Mexico offers incredible value for food, whether cooking at home or eating out.

Grocery Shopping

• Monthly groceries for one person: $150-300 USD
• Monthly groceries for a couple: $250-450 USD
• Local markets: Fresh produce 30-50% cheaper than supermarkets
• Imported goods: Premium prices at stores like Costco and Walmart

Dining Out

• Street tacos: $0.50-1.50 USD each
• Local restaurant meal: $3-8 USD
• Mid-range restaurant: $10-20 USD per person
• Upscale restaurant: $30-60 USD per person
• Coffee at a cafe: $2-4 USD
• Beer at a bar: $2-5 USD

Transportation

Getting around Mexico is affordable, especially if you don't own a car.

Public Transportation

• Metro ride (Mexico City): $0.25 USD
• Colectivo (shared van): $0.50-2 USD
• City bus: $0.30-1 USD
• ADO long-distance bus: $20-60 USD (depending on distance)

Taxis and Rideshare

• Uber/DiDi (average city ride): $3-8 USD
• Local taxi (short trip): $2-5 USD
• Airport transfers: $15-40 USD

Car Ownership

• Gas: $80-150 USD/month (depending on usage)
• Insurance: $40-80 USD/month
• Maintenance: Generally 30-50% cheaper than US
• Parking (monthly): $50-150 USD in cities

Healthcare

Healthcare in Mexico is significantly more affordable than in the United States.

Medical Costs

• Doctor visit (general practitioner): $30-60 USD
• Specialist consultation: $50-100 USD
• Dental cleaning: $30-50 USD
• Dental crown: $200-400 USD
• Basic blood panel: $20-50 USD

Insurance Options

• IMSS (public healthcare): $30-50 USD/month for voluntary enrollment
• Private Mexican insurance: $100-300 USD/month (depends on age and coverage)
• International expat insurance: $150-500 USD/month

Entertainment and Lifestyle

• Gym membership: $30-80 USD/month
• Yoga class (drop-in): $8-15 USD
• Movie ticket: $4-6 USD
• Spanish lessons (group): $100-200 USD/month
• Domestic flight: $50-150 USD one-way

Sample Monthly Budgets

Budget Lifestyle: $1,200-1,800 USD/month

• Modest apartment in a local neighborhood
• Cooking at home with occasional street food
• Public transportation
• Basic healthcare coverage
• Limited entertainment

Comfortable Lifestyle: $2,000-3,000 USD/month

• Nice apartment in a good neighborhood
• Mix of home cooking and restaurant dining
• Occasional Uber/taxi use
• Private health insurance
• Regular entertainment and activities

Premium Lifestyle: $3,500-5,000+ USD/month

• Upscale apartment or house
• Frequent dining out at nice restaurants
• Car ownership or frequent rideshare
• Comprehensive health insurance
• Regular travel and premium activities

Hidden Costs to Consider

• Visa fees and renewals: $30-200 USD annually
• Money transfer fees: 1-3% of transferred amounts
• Trips home: Budget for flights to visit family
• Imported goods: Items from your home country may cost more
• Initial setup costs: Deposits, furniture, household items

Tips for Managing Your Budget

• Shop at local markets: Better prices and fresher produce
• Learn Spanish: Access to better deals and local prices
• Use peso accounts: Avoid constant currency conversion fees
• Negotiate rent: Especially for long-term leases paid in advance
• Join expat groups: Get tips on where to find deals