Mexico's income tax (ISR) uses 11 progressive brackets from 1.92% to 35%, with the top rate at MXN 3,898,140+ (~$195,000 USD). Residents—anyone present 183+ days—face worldwide taxation, while non-residents pay 15-30% on Mexican-source income only (first MXN 125,900 exempt). The complexity hits expats: Mexico's tourist visa prohibits remote work, yet meeting residency requirements triggers full tax obligations. IMSS social security and AFORE pension add ~4.1% for employees. Filing deadline is April 30, with late penalties from MXN 1,800 to MXN 35,000. The upside? No federal inheritance, estate, gift, or wealth tax—making Mexico attractive for long-term asset planning.
Note: These are marginal rates — you only pay the higher rate on income within each bracket.
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Mexico uses 11 progressive ISR (Impuesto Sobre la Renta) brackets from 1.92% to 35%. The 30% rate begins at MXN 510,451 (~$25,000 USD), while the top 35% rate only applies above MXN 3,898,140 (~$195,000 USD). Most middle-income earners fall in the 17.92-23.52% brackets. Non-residents pay a flat 15-30% on Mexican-source income.
Individual tax returns (declaración anual) are due April 30 following the tax year. Self-employed workers must make provisional monthly payments (pagos provisionales) by the 17th of each month. Late filing penalties range from MXN 1,800 to MXN 35,000, plus potential surcharges and increased audit risk.
Here's the trap: staying 183+ days makes you a Mexican tax resident with worldwide income taxable at 1.92-35%. Your tourist visa technically prohibits remote work, but this doesn't exempt you from tax obligations if you meet residency requirements. Many digital nomads unknowingly trigger full Mexican tax liability.
No. Mexico has no federal inheritance, estate, gift, or wealth tax—making it attractive for long-term asset planning. However, some states impose local real estate transfer taxes on inherited property, and capital gains tax may apply when selling inherited assets.
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Last Updated: May 2026