Oaxaca, OAX, Mexico
Cultural heart of southern Mexico with indigenous traditions, world-renowned cuisine, and colonial architecture.
Below Average vs Mexico avg (100)
Affordable
Household income
Job market health
Oaxaca vs Mexico Average
Taxes
- Income Tax: 8.0%
- VAT: 16.0%
Economy & Jobs
- Median Income: Mex$102,000
- Unemployment: 4.8%
- Population: 270,955
Climate
- Sunny Days: 225/year
- Summer High: 86°F
- Winter Low: 48°F
Housing
- Median Home: Mex$1,000,000
- 1BR Rent: Mex$4500/mo
Cost of Living
Oaxaca's cost of living index is 65 (Mexico average = 100).
| Category | Oaxaca | National Average | Difference |
|---|---|---|---|
| Overall | 65 | 100 | -35.0% |
| Housing | 62 | 100 | -38.0% |
Data source: INEGI, BBVA Research, 2026
Housing Market
| Metric | Value |
|---|---|
| Median Home Price | Mex$1,000,000 |
| Median Rent (1BR) | Mex$4500/mo |
| Median Rent (2BR) | Mex$5,625/mo |
| Price per Sq Ft | Mex$666 |
Data source: Propiedades.com, 2026
True Cost of Home Ownership
Utilities
Estimated monthly utility costs for a typical household in Oaxaca:
| Utility | Estimated Monthly Cost | Notes |
|---|---|---|
| Electricity | Mex$600 | Based on ~300 kWh/month typical Mexican household usage (CFE) |
| Heating & Cooling | Mex$9 | Estimated based on local climate. electric or gas heating (limited usage in mild climates) |
| Cooling (AC) | Mex$7 | Estimated based on local climate and electricity rates |
| Water | Mex$240 | Includes sewer |
| Internet (100+ Mbps) | Mex$400 | Broadband average |
| Garbage / Trash | Included in taxes | Municipal service (covered by property taxes) |
| Total Utilities | Mex$1256 | Monthly estimate (including heating & cooling) |
Data sources: CFE, CONAGUA, IFT 2025
Best Neighborhoods
Downtown Oaxaca
The heart of the city with restaurants, shops, and entertainment. Average rent: Mex$5,400/mo.
Oaxaca Heights
Trendy area with local businesses and a mix of historic and modern housing. Average rent: Mex$4,950/mo.
East Oaxaca
Up-and-coming neighborhood with new developments and young professionals. Average rent: Mex$4,050/mo.
West Oaxaca
Family-friendly area with parks and good schools. Average rent: Mex$4,275/mo.
Remote Work Score
Oaxaca scores —/100 for remote work readiness:
Climate
Oaxaca has a varied climate with distinct seasons.
| Month | Avg High | Avg Low | Rainfall |
|---|---|---|---|
| January | 68°F | 48°F | 2.5" |
| April | 71°F | 63°F | 2.8" |
| July | 86°F | 61°F | 1.5" |
| October | 66°F | 66°F | 2.2" |
Taxes
- Income Tax: 8%
- VAT: 16%
- Property Tax: ~0.16% of assessed value
Economy & Jobs
Major industries include technology, healthcare, education, and manufacturing. The unemployment rate is 4.8%.
Important Disclaimer: All data on this page is for informational purposes only and does not constitute financial, legal, tax, or real estate advice. URCity and Northshore Press are not financial advisors, tax professionals, or real estate agents. Always consult qualified professionals before making relocation or financial decisions.
Frequently Asked Questions
What is the cost of living in Oaxaca, OAX, Mexico?
The cost of living index in Oaxaca is 65, which is Lower the Mexico national average of 100.
How much does it cost to buy a home in Oaxaca?
The median home price in Oaxaca is Mex$1,000,000. The housing index is 62.
What is the average rent for a 1-bedroom apartment?
The average rent for a 1-bedroom apartment in Oaxaca is approximately Mex$4500/mo.
Does Oaxaca, OAX have income tax?
Oaxaca is in OAX, which has an income tax rate of 8%.
What is the climate like in Oaxaca?
Oaxaca enjoys approximately 225 sunny days per year. Summer highs reach around <no value>°F,86°F, while winter lows can drop to around <no value>°F.48°F.
Data Sources
- Cost of Living: INEGI, BBVA Research, 2026
- Housing Data: Propiedades.com, 2026
- Income & Employment: INEGI Encuesta Nacional de Ocupación y Empleo, 2025
Data last updated: July 11, 2026. Data may not reflect current market conditions. Always verify with local sources before making relocation decisions.