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Mexico Tax Calculator 2025-26

Calculate your take-home pay after income tax and social contributions.

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Annual Take-Home Pay
$456,000
Monthly: $38,000

Tax Breakdown

Income Tax (ISR) $102,000
IMSS Contributions (8%) $48,000
Total Deductions $150,000
Effective Tax Rate 25.00%

Mexican Tax Brackets 2025-26

Limit Inferior $0 - $248,457 (1.92%)
Low Rate $248,457 - $732,849 (6.4%)
Medium Rate $732,849 - $1,221,165 (10.88%)
High Rate $1,221,165 - $2,737,805 (16%)
Top Rate Over $2,737,805 (35%)

Mexican Income Tax Guide

Mexico's income tax system, known as Impuesto Sobre la Renta (ISR), is administered by the Tax Administration Service (SAT - Servicio de Administración Tributaria). The system is progressive and applies to both residents and non-residents earning income in Mexico. Understanding how Mexican income tax works is essential for employees, self-employed individuals, and expatriates working in the country.

ISR Tax Brackets for 2025-26

The Mexican income tax system features a progressive structure with six tax brackets ranging from 1.92% to 35%. Tax brackets are adjusted annually for inflation and depend on your monthly income. The lower brackets apply to those earning up to approximately ¥248,000 per month, while the highest bracket applies to those exceeding ¥2.7 million monthly.

IMSS Social Security Contributions

Employees in Mexico must contribute to the Mexican Institute of Social Security (IMSS - Instituto Mexicano del Seguro Social). The employee contribution is typically 8% of gross salary, while employers contribute an additional portion. These contributions fund healthcare, disability insurance, life insurance, and retirement benefits. IMSS is a mandatory social security system for all formal employees.

Annual Tax Return Filing

Mexican taxpayers must file an annual tax return (Declaración de Impuestos) with the SAT. Most salaried employees have their taxes withheld through the ISR system by their employers. However, annual filing allows taxpayers to claim deductions, adjust withholding, and calculate their actual tax liability. The filing deadline is typically April 30 each year.

Deductions and Tax Benefits

Mexican taxpayers can deduct various expenses including professional fees, business expenses, mortgage interest on primary residences, medical expenses, and educational costs. These deductions can significantly reduce your taxable income. Additionally, certain investments and contributions to retirement savings plans may qualify for preferential tax treatment.