Cruisers planning a trip to Mexico’s sun-soaked ports like Cozumel, Costa Maya, or Puerto Vallarta can breathe a sigh of relief. After months of negotiations between the Mexican government and the cruise industry, Mexico has reduced its proposed head tax on cruise passengers and opted for a phased rollout. This decision, finalized in May 2025, is a win for travelers and the communities that depend on tourism. Here’s what you need to know about the updated tax and how it affects your next cruise.
Background: The Original Tax Proposal
In late 2024, Mexico’s federal government announced plans to eliminate a long-standing exemption that spared cruise passengers from the Non-Resident Duty, a head tax applied to short-stay tourists. The proposed fee, set to take effect on January 1, 2025, was a whopping $42 per passenger, regardless of whether they disembarked. Combined with local port taxes, the total could have climbed to $47 per person, making Mexico one of the most expensive cruise destinations in the Caribbean. For a family of four, this meant an additional $168-$188 per port call—a significant hit to vacation budgets.
As expected, the cruise industry pushed back hard, as these taxes and port fees are passed on to passengers and can significantly increase the cost of cruises making stops in Mexico, and could cause cruisers to pick an alternate itinerary. Ports like Cozumel, the world’s busiest cruise destination, and Costa Maya, rely heavily on the economic boost from cruise visitors. Industry leaders warned that cruise lines might reroute ships to more affordable Caribbean ports, as they’ve done in the past with destinations like Alaska when faced with high fees.
The New Agreement: A Phased and Reduced Tax
After negotiations, Mexico’s federal government agreed to a compromise. Instead of the $42 fee, the head tax will start at $5 per passenger beginning July 1, 2025. The tax will gradually increase over the next few years: $10 per person from August 2026 to July 2027, $15 from August 2027 to July 2028, and finally $21 starting November 2028. This phased approach gives cruise lines and passengers time to adjust while keeping Mexico competitive with other Caribbean destinations, where taxes average far lower.
The agreement also includes commitments from cruise lines to promote port infrastructure projects, such as a proposed fourth pier in Cozumel, increase passenger visits, and source more Mexican goods and supplies for their ships.
What This Means for Your Next Cruise to Mexico
For cruisers, the reduced tax is a small win, but still an added cost. The $5 fee is unlikely to significantly impact your cruise fare, especially since it’s typically rolled into the total cost by cruise lines like Carnival, Royal Caribbean, or Celebrity Cruises. Even at its peak of $21 in 2028, the tax remains far more manageable than the originally proposed $42. For a family of four, the cost will range from $20 in 2025 to $84 in 2028 per port call—still a lot less than what was originally proposed.
The delay until July 2025 also means that early 2025 sailings are unaffected, giving you a window to book a last minute cruise without the extra fee. If you’re planning a cruise to Mexico, check with your cruise line to confirm how the tax will be reflected in your fare. Thanks to a 2024 California law, cruise lines must now advertise prices inclusive of all taxes and fees, so you’ll see the full cost upfront.
Bon Voyage to Hidden Fees! Cruise Prices Get Crystal Clear in July 2024
Despite the tax debate, the cruise industry’s commitment to increasing visits and investing in infrastructure, like Royal Caribbean’s planned Perfect Day Mexico opening in 2027, means cruise lines aren’t giving up on Mexico.