Mexico

Cost of Living in La Paz

La Paz costs 15-25% more than mainland Mexico due to geographic isolation—everything arrives by truck down the peninsula or by ferry from the mainland. Electricity is the wildcard expense: BCS has Mexico's highest rates (6.188 pesos/kWh), and heavy AC use in summer can push you into DAC tier where bills triple. The Baja 'Free Zone' advantage means no import permit needed for foreign-plated vehicles. Spanish-language rental listings on Inmuebles24 run 20-30% cheaper than English equivalents.

Monthly Total

$1,727

$30,223

Housing (1BR Mid-range)

$805

Daily Spend (ex. rent)

$31

Based on a typical expat lifestyle: 1BR furnished apartment, mix of cooking/eating out, rideshare transportation, moderate entertainment. Last updated: 12/2/2025.

Monthly Cost Breakdown

Housing (Rent)

1BR furnished apartment in mid-range neighborhood

$805

$14,088

Utilities

Electric, water, gas, and internet

$160

$2,800

Groceries

Groceries from supermarkets

$193

$3,378

Dining Out

Mix of casual restaurants, ~12 meals/month

$96

$1,680

Transportation

Rideshare (Uber/Didi), ~30 rides/month

$150

$2,625

Lifestyle & Entertainment

Entertainment, occasional cleaning service

$193

$3,378

Healthcare

Basic private health insurance

$85

$1,488

Phone & Subscriptions

Phone plan and streaming subscriptions

$45

$788

Monthly Total

$1,727

$30,223

Living in La Paz

La Paz offers one of Mexico's most compelling value propositions for expats seeking authentic Mexican culture, world-class natural beauty, and genuine safety without Los Cabos' tourist-trap atmosphere—though at 15-25% higher costs than mainland Mexico due to geographic isolation. A couple can live comfortably on $2,000-2,500 USD monthly in what crime statistics confirm is one of Mexico's safest cities.

Housing Reality

Day-to-Day Costs

Utilities Warning

Healthcare

Budget Tiers

Destination Guide

Complete Guide to Living in La Paz

Authentic Baja city with world-class marine life, exceptional safety, and genuine Mexican culture—at 15-25% higher costs than mainland Mexico

Marine Life EnthusiastsDivers & SnorkelersKayakers & PaddleboardersAuthentic Mexico Seekers
Read Full Guide

Frequently Asked Questions

Is La Paz cheaper than Cabo San Lucas?▼
Yes—La Paz runs 15-25% cheaper than Cabo. One-bedroom apartments in good La Paz neighborhoods cost $700-1,000 versus $1,000-1,500 in Cabo. Restaurants, especially local spots, cost significantly less. The trade-off: Cabo has more English-speaking infrastructure and nightlife. La Paz offers authentic Mexican city life with world-class marine activities at lower cost.
Why is La Paz more expensive than mainland Mexico?▼
Geographic isolation drives up costs. Everything arrives by truck down the peninsula or by ferry from the mainland, adding 15-25% to prices. Electricity rates are Mexico's highest (BCS Tarifa 1C at 6.188 pesos/kWh). The water crisis requires additional expenses for filtration or garrafón delivery. However, costs remain well below US levels, and the safety, marine life access, and quality of life offset the premium versus Oaxaca or Mérida.
What's the electricity situation in La Paz?▼
Electricity is the wildcard expense in La Paz's desert climate. BCS has Mexico's highest rates. Without AC: $15-25 monthly. Moderate AC use (6 hours daily in summer): $30-50. Heavy AC (8-12 hours daily): $75-150+. Critical: if your 12-month average exceeds 850 kWh, you're reclassified to DAC (high consumption) tier where government subsidies disappear and bills can TRIPLE. Monitor usage, use fans when possible, consider solar panels.
Do I need a car in La Paz?▼
Depends on your lifestyle. Centro and Malecón are highly walkable. Public buses (colectivos) cost ~10 pesos. DiDi/rideshare works for around-town trips. You NEED a car for: visiting remote beaches regularly (Balandra is 30 minutes), day trips to Todos Santos or Los Cabos, living in El Centenario, or exploring Baja. Big advantage: Baja is a 'Free Zone'—no Temporary Import Permit required for foreign-plated vehicles.
Is the water safe to drink in La Paz?▼
No—tap water is not potable. Standard solutions: garrafón delivery (20L jugs for 20-40 pesos each, ~$1-2) or install reverse osmosis system (3,000-6,000 pesos one-time). The broader water crisis is real—BCS is Mexico's driest state with the La Paz aquifer running a 13 million cubic meter annual deficit. Expect occasional supply interruptions in some neighborhoods. Hotels and modern developments typically have backup systems.
How does healthcare work in La Paz?▼
La Paz has solid healthcare infrastructure. Hospital General Salvatierra is the main public hospital. Fidepaz/CEM specifically serves Americans and Canadians with English-speaking doctors and accepts 35+ insurance providers. Centro Médico operates the only dedicated ICU. Costs run 40-80% below US: GP visits $18-25, specialists $40-60, dental cleanings $35-50 (vs $100 US). For complex cases, Los Cabos and mainland Mexico hospitals are accessible. IMSS public insurance available to residents at $570-1,650 annually.

Compare La Paz to Other Cities

See how La Paz stacks up against other popular expat destinations in Mexico.

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