Mexico's income tax (ISR) uses 11 progressive brackets from 1.92% to 35%, with the top rate at MXN 5,107,704+ (~$284,000 USD). Tax residents (people who have made Mexico their home or, if they also have a home abroad, whose centre of vital interests is in Mexico) face worldwide taxation; there is no simple 183-day test. Non-residents pay tax on Mexican-source income only, and on Mexican-source salaries the rate is 15% above the first MXN 125,900 (exempt) and 30% above MXN 1,000,000. The complexity hits expats: visitor immigration status without permission for remunerated activities does not authorise work for Mexican sources, while tax residence depends on where your home and income are, not on your visa. IMSS employee social security contributions add about 2.8% for employees. Filing deadline is April 30, with late-filing fines from MXN 1,810 to MXN 22,400 (CFF art. 82 as updated for 2026). The upside? No federal inheritance, estate, or wealth tax (inheritances are income-tax exempt, as are gifts between spouses and from parents to children), 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 668,840 (~$37,000 USD), while the top 35% rate only applies above MXN 5,107,704 (~$284,000 USD). Most middle-income earners fall in the 17.92-23.52% brackets. On Mexican-source salaries, non-residents pay 0% on the first MXN 125,900, 15% up to MXN 1,000,000 and 30% above; other income types have other rates.
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 fines for an omitted return range from MXN 1,810 to MXN 22,400 (2026 update of CFF art. 82), plus potential surcharges and increased audit risk.
It depends on residence, not on a day count. Under Article 9 of the Federal Tax Code you are a Mexican tax resident if you establish your home in Mexico; if you also have a home abroad, you are resident if your centre of vital interests is in Mexico (for example, more than 50% of your annual income is Mexican-source, or your main professional activity is based there). Residents are taxed on worldwide income at 1.92-35%. A 183-day count is not Mexico's domestic residence test, although it appears elsewhere, such as in treaty tie-breakers. Separately, a visitor status without permission for remunerated activities does not authorise work for Mexican sources; remote work for a foreign employer is a grey area, so confirm with the immigration authority (INM) and a tax adviser.
No. Mexico has no federal inheritance, estate, or wealth tax, and inheritances are exempt from income tax. Gifts between spouses and from parents to children are also exempt, but other gifts above a small annual limit can count as taxable income. 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: October 2026