How much is IVA?

In Mexico, IVA is a value added tax (Impuesto al Valor Agregado) that functions much like a sales tax in the US. The tax rate is 16% and is added to the purchase of any product or service, with the exception of food and drugs. It is not charged on your real estate transaction, but is added to the fees that the lawyers, notarios, and real estate agents/agencies charge for their services.