For most individuals in Mexico, the key taxes are income tax (ISR) and value added tax (IVA). Entrepreneurs and self-employed persons are entitled to apply the RESICO tax regime with preferential tax rates, and investors additionally face taxation of dividends and interest. Tax rates and limits are reviewed annually by the state.
In this publication, we present only tables with current tax rates, and their application in various tax regimes is described in other materials on our website.
Income Tax ISR
ISR (Impuesto Sobre la Renta) is considered the main tax for individuals in Mexico. It applies to wages, income from business, professional services, rental property, investments and most other types of income.
The tax is calculated on a progressive scale: the higher the income, the higher the tax rate. To determine the tax amount, you need to find the range in which the income falls, then add a fixed amount (Cuota Fija) and a percentage of the amount exceeding the lower limit of the range. The maximum ISR rate for individuals in Mexico is 35%.
2 ISR scales are used. During the year, ISR is deducted on a monthly scale, after the end of the year the final calculation is carried out on an annual scale. As a result, the taxpayer either receives a refund of the overpaid tax (devolución), pays nothing extra, or pays the difference.
Monthly scaleISR (advance tax calculation) applies:
- employers when paying wages,
- entrepreneurs and self-employed with monthly ISR payments,
- those who rent out real estate,
- by most individuals who are required to file monthly returns.
| Lower limit (MXN) | Upper limit (MXN) | Fixed amount (MXN) | Excess rate |
|---|---|---|---|
| 0,01 | 746,04 | 0,00 | 1,92% |
| 746,05 | 6 332,05 | 14,32 | 6,40% |
| 6 332,06 | 11 128,01 | 371,83 | 10,88% |
| 11 128,02 | 12 935,82 | 893,63 | 16,00% |
| 12 935,83 | 15 487,71 | 1 182,88 | 17,92% |
| 15 487,72 | 31 236,49 | 1 640,18 | 21,36% |
| 31 236,50 | 49 233,00 | 5 004,12 | 23,52% |
| 49 233,01 | 93 993,90 | 8 232,86 | 30,00% |
| 93 993,91 | 125 325,20 | 21 660,17 | 32,00% |
| 125 325,21 | 375 975,61 | 31 666,10 | 34,00% |
| 375975.62 and more | — | 116 887,01 | 35,00% |
Annual scaleThe ISR is applied when calculating the final tax for the entire calendar year:
- when filing the annual declaration (Declaración Anual),
- to check the correctness of deductions for the year,
- when calculating tax refund (saldo a favor),
- when determining additional tax payment (saldo a cargo).
| Lower limit (MXN) | Upper limit (MXN) | Fixed amount (MXN) | Excess rate |
|---|---|---|---|
| 0,12 | 8 952,48 | 0,00 | 1,92% |
| 8 952,60 | 75 984,60 | 171,84 | 6,40% |
| 75 984,72 | 133 536,12 | 4 461,96 | 10,88% |
| 133 536,24 | 155 229,84 | 10 723,56 | 16,00% |
| 155 229,96 | 185 852,52 | 14 194,56 | 17,92% |
| 185 852,64 | 374 837,88 | 19 671,84 | 21,36% |
| 374 838,00 | 590 796,00 | 48 065,52 | 23,52% |
| 590 796,12 | 1 127 926,80 | 98 849,40 | 30,00% |
| 1 127 926,92 | 1 503 902,40 | 259 988,64 | 32,00% |
| 1 503 902,52 | 4 511 707,32 | 380 302,20 | 34,00% |
| 4511707.44 and more | — | 1 402 954,44 | 35,00% |
RESICO tax regime for individuals
The RESICO regime (Regimen Simplificado de Confianza) is intended for individual entrepreneurs and self-employed persons with a limited annual turnover. Unlike the general regime, the tax is calculated at significantly lower rates.
Key application standards for RESICO:
- Maximum annual income — MXN 3.5 million,
- ISR rate — on a scale from 1% to 2.5%.
In RESICO for individuals, monthly ISR payments are considered final (pagos definitivos). There is no classic annual recalculation, as in the general regime. An annual return is not required since monthly payments are already considered final.
| Monthly Income (MXN) | Bid |
|---|---|
| Up to 25000 | 1,0% |
| From 25000 to 50000 | 1,1% |
| From 50000 to 83333 | 1,5% |
| From 83333 to 208333 | 2,0% |
| Over 208333 | 2,5% |
IVA Value Added Tax
IVA (Impuesto al Valor Agregado) applies to most goods and services in the country, but many health, education and financial services are exempt from IVA or are zero-rated.
IVA rates
| Mode | Bid |
|---|---|
| Standard rate | 16% |
| Border zone | 8% |
| Export of goods and services | 0% |
| Selected benefit categories | 0% or exemption |
Tax on dividends
Individuals receiving dividends from Mexican companies pay an additional 10% tax. This tax is withheld when dividends are paid.
Taxation of interest
Interest on bank deposits and other financial instruments is also subject to ISR. Financial institutions withhold the tax as an advance payment, after which the final payment is made when filing the annual return at ISR rates.
Depending on the business activity, other taxes may also apply, in particular the IEPS excise tax and some municipal taxes.