The attackers opened fire inside the Los Cantaritos bar in the city's historic district, according to the head of Queretaro's public security department Juan Luis Ferrusca.
"Emergency services arrived at the scene and confirmed that at least four people armed with long weapons had arrived on board a pickup truck," he said in a video posted on social media.
"Inside, 10 people were reported dead and at least seven more were injured so far," he added.
One suspect was detained and the vehicle used in the attack was found abandoned and set on fire, Ferrusca said.
Queretaro is considered one of the safer cities in Mexico, where spiraling violence, much of it linked to drug trafficking and gangs, has seen more than 450,000 people murdered in since 2006.
MNA/
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