Calculate ISR (Impuesto Sobre la Renta) with official SAT tax rates and brackets
Enter your income for accurate 2026 Mexican ISR tax calculations
Mexico uses a progressive income tax system where higher earners pay a higher percentage. The federal income tax is called ISR (Impuesto Sobre la Renta), and rates range from 1.92% to 35% depending on your income level.
Mexico's federal income tax has 11 tax brackets. Here are the key brackets for 2026:
Note: MXN to USD conversion uses approximate 2026 exchange rate of 17.85 MXN = 1 USD. Actual tax brackets are defined in Mexican pesos (MXN) by SAT.
In addition to income tax, employees in Mexico contribute to IMSS (Instituto Mexicano del Seguro Social), which covers health insurance, retirement, and disability. Employee contributions are approximately 2.375% of gross salary, while employers contribute an additional ~25-30%.
Most Mexican states do not have separate state income tax. However, some states like Mexico City charge a small payroll tax (typically 2-3%) paid by the employer, not deducted from your salary.
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See how Mexican ISR (Impuesto Sobre la Renta) applies to different income levels
Mexico has a progressive income tax system (ISR) with rates ranging from 1.92% to 35%. The tax brackets are structured so that higher income earners pay higher rates. The top rate of 35% applies to annual income exceeding approximately MXN 3.8 million. The 2026 rates remain unchanged from 2025, as per Article 152 of the Income Tax Law.
The tax filing deadline in Mexico for individuals (personas físicas) is April 30, 2026, for the 2025 tax year. Businesses (personas morales) must file by March 31, 2026. Late filing can result in fines ranging from MXN $1,800 to $35,000. You can file your declaración anual online through the SAT website.
ISR (Impuesto Sobre la Renta) is Mexico's income tax applied to both individuals and companies. For individuals, ISR rates range from 1.92% to 35% based on income brackets defined in Annex 8 of the Miscellaneous Tax Resolution (Resolución Miscelánea Fiscal). The tax is administered by SAT (Servicio de Administración Tributaria), Mexico's tax authority.
Yes, Mexican taxpayers can claim deductions for medical expenses (up to 10% of income or MXN 20,000 for optical and dental), education expenses (tuition fees for dependents), mortgage interest on primary residence, retirement savings contributions (AFORE), charitable donations (up to 7% of income), and professional fees. All deductions must be supported with valid CFDI (electronic invoices) issued by SAT-authorized providers.
Monthly ISR is withheld from your paycheck by your employer throughout the year using monthly tax tables. Annual ISR is calculated when you file your declaración anual (annual return) by April 30. The annual return reconciles all income, deductions, and withholdings to determine if you owe additional tax or receive a refund from SAT. Filing is mandatory for income above MXN 400,000 or if you have multiple income sources.
Yes, tax residents of Mexico (those present more than 183 days in a calendar year or have their center of vital interests in Mexico) pay income tax on worldwide income. Non-residents pay tax only on Mexico-sourced income. Foreign residents must obtain an RFC (Registro Federal de Contribuyentes - tax ID) from SAT and file annual tax returns. Double taxation treaties may provide relief for income taxed in both countries.
See how Mexico's tax system compares to other Latin American and North American countries
Data Source: SAT (Servicio de Administración Tributaria)
Verified for 2026 tax year • Based on Annex 8 of 2026 Miscellaneous Tax Resolution • Last updated: January 2026
This calculator provides estimates based on official SAT rates and tables. For personalized tax advice, consult a certified Mexican accountant (contador público) or tax advisor familiar with Mexican tax law.