Mexico's Tax Administration Service (SAT) has published an updated list of personal expenses that individuals are able to include in their annual tax return for the 2026 fiscal year. We are talking about personal (individual) expenses that reduce the tax base subject to compliance with established formal requirements.
SAT reminded taxpayers to promptly request and review electronic invoices (CFDIs) as errors in tax data will invalidate the deduction. The key condition for recognizing an expense is the availability of a correct CFDI receipt issued to the person claiming the deduction, with an accurate description of the purchased product or service. Payment must be made by electronic transfer, credit or debit card, or personal check. SAT does not accept cash payments for deduction purposes.
The official list of expenses eligible for deduction in 2026 includes:
- medical and hospital services,
- insurance of major medical risks,
- funeral expenses,
- donations
- tuition fees and school transport,
- mortgage interest,
- voluntary pension contributions and deposits into special savings accounts.
The maximum deduction amount remains limited: it is allowed to write off an amount up to five times the annual amount of UMA units of measurement and updating (approximately 206.3 thousand pesos) or 15% of gross income, whichever is less. Taxpayers working under the simplified RESICO regime, as before, are not entitled to personal deductions. Industrial, business and professional expenses beyond this are not included in this list because the SAT considers them under other tax regimes (business or company deductions).
SAT recommends regularly organizing incoming invoices and reconciling them as you purchase them to avoid errors when preparing your annual return.
Tax deduction — This is a mechanism to reduce the amount of income subject to tax. To use it, you must document the expense, provide correct tax information, and use SAT-recognized payment methods. This opens the way to reduce the final tax burden.