Complete guide to Mexican income tax (ISR), IVA, social security (IMSS), best tax software, and top Mexican accountants
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Understanding Mexico's progressive income tax (ISR), IVA, and social security (IMSS) for 2025
Mexico uses a progressive tax system (Impuesto Sobre la Renta) administered by SAT (Servicio de Administración Tributaria):
All residents and non-residents earning income in Mexico must file annual tax returns
Mexican social security contributions fund healthcare, pensions, and disability insurance:
IMSS contributions cover public healthcare, maternity leave, disability benefits, and retirement pensions. Rates vary based on salary level and risk classification.
Mexico's consumption tax system with regional variations:
IVA is applied to most goods and services. Border zones (within 20km of US border) enjoy reduced rates. Essential items like food and medicine may be zero-rated.
Important deadlines for Mexican taxpayers:
Annual tax returns must be filed in April for the previous calendar year. Monthly obligations include IVA and payroll tax returns.
Popular tax deductions for Mexican taxpayers:
Mexico offers various personal deductions including medical costs, school fees, funeral expenses, and voluntary retirement contributions to approved plans.
Mexico offers special tax incentives in certain regions:
Businesses operating in border zones or maquiladora programs may qualify for reduced tax rates and special incentives to promote investment and employment.
Best tax preparation software for Mexican individuals and businesses
Price: Free
Best for: Individual and business tax returns
Official Mexican tax administration portal. Required for all tax filings in Mexico. Provides digital invoicing (CFDI), annual returns, monthly IVA, and RFC registration.
Key Features: Official SAT platform, CFDI invoicing, annual returns, IVA filing, RFC management, payment tracking.
Price: MXN$500 - $2,000/month
Best for: Small to medium businesses
Popular Mexican accounting software with comprehensive tax compliance features. Handles accounting, payroll, IVA, and annual returns with direct SAT integration.
Key Features: Full accounting, payroll processing, automatic IVA calculations, SAT integration, CFDI invoicing, multi-company support.
Price: MXN$400 - $1,800/month
Best for: Accounting firms and businesses
Professional Mexican accounting system with tax compliance modules. Strong features for managing multiple clients and complex tax situations.
Key Features: Multi-entity accounting, tax calculations, CFDI generation, bank reconciliation, financial reports, SAT compliance.
Price: MXN$300 - $1,200/month
Best for: Freelancers and small businesses
Cloud-based Mexican accounting software designed for ease of use. Ideal for entrepreneurs, freelancers, and small businesses managing their own taxes.
Key Features: Cloud-based, mobile app, CFDI invoicing, expense tracking, IVA calculations, simple reporting, affordable pricing.
Price: MXN$250 - $900/month
Best for: CFDI invoicing and basic compliance
Specialized Mexican invoicing platform focused on CFDI (electronic invoicing) with tax compliance features for independent workers and small businesses.
Key Features: CFDI invoicing, expense management, client database, payment tracking, SAT validation, API integration.
Leading tax professionals for Mexican tax compliance and planning
Specialization: Individual tax returns and family planning
Services: Annual tax returns, monthly IVA filing, RFC registration, tax planning, SAT representation
Local accounting offices throughout Mexico serving middle-class families and individuals. Typical fees MXN$2,000-$8,000 for personal returns, with expertise in regional tax matters and SAT compliance.
Specialization: Working professionals and small business owners
Services: Personal tax planning, business accounting, monthly IVA, IMSS registration, payroll services
Community accounting firms across Mexican cities serving local residents and small businesses. Competitive pricing MXN$2,500-$10,000, with personalized service and ongoing monthly support.
Specialization: Digital tax services for busy professionals
Services: Online tax returns, video consultations, document upload, WhatsApp support, mobile access
Modern online tax advisory services with qualified Mexican accountants. Fixed pricing from MXN$1,800-$7,000 for individual returns, with digital platforms and remote accessibility throughout Mexico.
Specialization: Expatriates and foreign residents
Services: Expat tax returns, foreign income reporting, visa support, English-language service, CFDI assistance
Bilingual tax advisors specializing in expat taxation and foreign resident obligations. Fees MXN$3,500-$15,000 for expat returns, with expertise in cross-border taxation and immigration requirements.
Specialization: Middle-income families and individual taxpayers
Services: Family tax planning, inheritance advice, property transactions, year-round consulting, deduction optimization
Family-focused tax advisors serving middle-class Mexican households. Transparent pricing MXN$2,200-$9,000 depending on complexity, with ongoing tax planning and personal attention throughout the year.
The accountants and firms listed above are provided for informational purposes only. CountryTaxCalc does not endorse any specific service provider and is not affiliated with these firms.
Professional fees, services, and expertise may vary. We recommend consulting multiple providers and verifying their credentials before making any decisions.
Always ensure your chosen tax professional is appropriately registered with Mexican regulatory bodies and the SAT (Servicio de Administración Tributaria).
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