Mexico's cruise tax will be $5 per passenger when it is introduced on July 1, a significant reduction from the previously announced $42, according to the Florida-Caribbean Cruise Association (FCCA).
The rate will increase to $10 on Aug. 1, 2026; $15 on July 1, 2027; and $21 on Aug. 1, 2028.
The FCCA said it negotiated the agreement with the Mexican government. The deal "safeguards cruise tourism in Mexico," the FCCA said.
"This milestone reflects the FCCA's core mission: fostering open dialogue and building partnerships to promote sustainable growth and shared value throughout our destinations," the FCCA said.
Mexico's Congress initially approved a $42 head tax in November, scheduling implementation for Jan. 1. By December, it was delaying implementation to July after receiving cruise industry backlash.
In a letter to Mexico President Claudia Sheinbaum, the FCCA had claimed that cruising to Mexico would become 213% more expensive than the average Caribbean port of call if the $42 tax were implemented.
Mexico has a tourism tax, but only for overnight visitors. Those entering the country by cruise ship have been exempt because passengers come and go the same day.