Mexico Tax Rates 2026

Mexico tax rates at a glance for 2026

Mexico taxes resident individuals broadly on income under the rules of the Income Tax Law (Ley del Impuesto sobre la Renta, LISR). The annual individual tariff is progressive. Mexican resident companies generally calculate corporate ISR at 30% of taxable fiscal profit.

Mexico personal income tax rates for 2026

The 2026 annual ISR tariff under Annex 8 of the 2026 Miscellaneous Tax Resolution applies the following lower limit, upper limit, fixed quota and marginal percentage. The marginal rate applies only to the excess over the lower limit; it is not a flat rate on the whole taxable amount.

Source: Annex 8 of the Resolución Miscelánea Fiscal para 2026, tariff for the annual tax calculation referred to in LISR Articles 97 and 152.

Tax residence and non-resident income

Mexican tax treatment depends on residence and the source and type of income. Residents are generally subject to Mexican ISR under the resident rules, while non-residents may be taxed on Mexican-source income under Title V of the LISR. Different withholding rates and calculation methods can apply to employment, professional services, rents, interest, royalties, real estate and disposals of shares.

Corporate income tax in Mexico

Under Article 9 of the LISR, Mexican legal entities generally calculate annual income tax by applying a 30% rate to the fiscal result. Broadly, taxable profit is determined from taxable income less authorized deductions and statutory profit-sharing adjustments, with eligible tax losses from prior years applied subject to the law.

The annual corporate income-tax return is generally filed within three months after the end of the fiscal year.

VAT (IVA) in Mexico

The general Mexican value-added tax (Impuesto al Valor Agregado, IVA) rate is 16% for taxable supplies covered by the VAT Law, including sales of goods, independent services, temporary use or enjoyment of goods and imports, subject to statutory zero-rating, exemptions and special rules.

Qualifying taxpayers and transactions in designated northern or southern border regions may be able to apply an effective 8% VAT incentive where the applicable decree and SAT requirements are met. This is an incentive regime rather than a nationwide general VAT rate.

Dividends, capital gains and investment income

For individuals receiving dividends from Mexican resident companies, the LISR provides an additional 10% final tax on distributed dividends or profits, generally withheld by the distributing company. Dividends paid by Mexican resident companies to residents abroad are also generally subject to a 10% withholding under Article 164, subject to treaty relief and statutory exceptions.

Capital gains and investment income require transaction-specific analysis. The tax base and rate vary according to the asset, residence of the taxpayer, source of wealth, whether securities are publicly traded, treaty protection and other statutory conditions. For non-resident share disposals, domestic law can in relevant cases impose tax on gross proceeds, while an alternative net-gain method may be available when statutory conditions are met.

Mexico tax return and payment deadlines

The Mexican tax year generally follows the calendar year. Under Article 150 of the LISR, individuals required to file an annual return generally do so in April of the following year. Special filing exceptions apply to certain individuals whose income falls within statutory thresholds and categories.

Companies subject to Article 9 generally file their annual ISR return within three months following the end of the fiscal year. Monthly provisional payments, VAT returns, payroll withholding and other information obligations may also apply throughout the year.

Important tax-use notice

This page is a general reference and does not replace the Mexican tax statutes, regulations, administrative rules, official guidance or a professional review of the taxpayer's facts. Rates, incentives, treaty outcomes, filing duties and withholding rules can depend on the taxpayer, transaction, location and tax regime.