Mexico Income Tax Calculator 2026 (ISR)

Residents pay progressive rates from 1.92% to 35% under the annual tariff in article 152 of the Income Tax Law. For 2026 SAT updated the tariff for inflation for the first time since 2023; the top rate of 35% applies above MXN 5,107,703.93.

Pay for work done in Mexico is taxed on the total received in 12 months: the first MXN 125,900 is exempt, the part up to MXN 1,000,000 is taxed at 15% and anything above at 30%, with no deductions. It is not taxed in Mexico if a foreign employer with no Mexican establishment pays you and you spend less than 183 days in Mexico in any 12 months.

Personal deductions such as medical and dental bills, health insurance premiums, mortgage interest, school transport and voluntary retirement contributions. In total they are capped at the lower of 15% of your income or 5 annual UMAs (MXN 213,973.20 in 2026). You need electronic invoices (CFDI) for them.

Mexican retirement pensions are exempt up to 15 UMAs a day, about MXN 642,272 a year in 2026. Whether foreign pensions get the same exemption is disputed, and tax treaties matter: under the US–Mexico treaty, US Social Security is taxed only by the US, while private pensions are taxed where you live. Get advice for your own case.

Mexico does not use a 183-day rule. You are resident if you have a home in Mexico, or, if you also have one abroad, if your centre of vital interests is in Mexico. Use the tax residency checker on this site.