Income tax in Mexico 2026

The federal scale runs from 1.92% through eleven steps to 35% above roughly MXN 5.1 million a year — and unlike the United States or Canada, no state income tax stacks on top.

Small earners get the employment subsidy (a credit for salaries up to MXN 11,492.66 a month), and small businesses can escape the scale entirely through the simplified trust regime (RESICO)'s 1–2.5% turnover tax.

At a glance

top rate: 35% above MXN 5,107,704 (2026)
entry band: 1.92% on the first MXN 10,135
tax year basis: Calendar year
filing deadline: 30 April; monthly withholding or advance payments through the year
residency basis: Worldwide if your dwelling or centre of vital interests is in Mexico
regime flag: RESICO 1–2.5% turnover tax up to MXN 3.5 million; border-region third-off credit

Rates

Annual progressive scale (2026)

Taxable income (MXN)	Marginal rate	Note
0 – 10,135	1.92%
10,135 – 86,022	6.4%
86,022 – 151,176	10.88%
151,176 – 210,404	16% / 17.92%	Two narrow bands
210,404 – 424,354	21.36%
424,354 – 668,840	23.52%
668,840 – 1,276,926	30%
1,276,926 – 1,702,568	32%
1,702,568 – 5,107,704	34%
Over 5,107,704	35%

Marginal rates apply within each band.

RESICO — Simplified Trust Regime (2026)

Annual gross income (MXN)	Rate on receipts	Note
Up to 300,000	1%	No deductions — the rate applies to invoiced gross income
300,000 – 600,000	1.1%
600,000 – 1,000,000	1.5%
1,000,000 – 2,500,000	2%
2,500,000 – 3,500,000	2.5%	Exceeding MXN 3.5 million forces exit to the general regime

Thresholds & allowances

Personal deductions cap15% of income or MXN 213,973
Whichever is lower — covers medical, dental, funeral (to MXN 42,795), school transport, insurance and mortgage real-interest deductions
Retirement contributions10% of income, max MXN 213,973
Separate ceiling for Mexican retirement-plan contributions; a further MXN 152,000 incentive exists for qualifying pension deferrals
Employment subsidy15.02% of the monthly measure unit (UMA)
Monthly credit (15.59% in January 2026) for salaries up to MXN 11,492.66 a month
Charitable donations7% of prior-year income
4% for donations to government bodies
Primary-sector exemptionMXN 900,000
Farming, forestry, livestock and fishing income exempt up to this amount under RESICO
No-filing thresholdMXN 400,000
Salary-only earners below this (with interest under MXN 100,000) need not file

Residency

Residency trigger

A dwelling in Mexico makes you resident; with homes in two countries, the centre of vital interests decides (over 50% of income Mexican-source, or your main professional base). Mexican nationals are presumed resident, and leaving without filing an expatriation notice keeps you taxable for 5 more years.

Non-resident treatment

Non-residents pay final withholding on Mexican-source income — salaries above MXN 125,900 a year at 15%, then 30% above MXN 1 million, with the first MXN 125,900 exempt and a 183-day exemption for foreign-paid staff.

Notes

Everyone files separately — no joint returns, except for assets held under the marital joint-ownership regime.
RESICO excludes company shareholders, related parties and permanent-establishment holders; missing three advance payments or the annual return ejects you.
Digital-platform sellers face withholding by the platform: 2.5% on goods and services in 2026 (2.1% ride-hailing, 4% accommodation) — 20% if unregistered.
Business losses carry forward 10 years; unused capacity in any year is forfeited.
Loans, gifts and prizes above MXN 600,000 must be reported in the return or they become taxable income.
The border-region incentive credits one third of the income tax on northern and southern border-zone business income through 2026.

FAQ

What is Mexico's top income tax rate?

35%, on annual taxable income above about MXN 5.1 million in 2026 — with no state income taxes added on top.

How does RESICO work?

Businesses, professionals and landlords with up to MXN 3.5 million of annual income pay a flat 1–2.5% of gross receipts — no deductions, monthly payments by the 17th, and an April annual return.

When do I file?

By 30 April, with no extensions; salary-only earners under MXN 400,000 are usually settled by employer withholding and need not file.

Figures: tax year 2026, compiled from public sources. Not tax advice.

See income tax in other countries

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