🇲🇽 Mexico Tax Guide 2025

Complete guide to Mexican income tax (ISR), IVA, social security (IMSS), best tax software, and top Mexican accountants

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Mexican Tax System Overview

Understanding Mexico's progressive income tax (ISR), IVA, and social security (IMSS) for 2025

📊 Income Tax Rates 2025 (ISR)

Mexico uses a progressive tax system (Impuesto Sobre la Renta) administered by SAT (Servicio de Administración Tributaria):

  • Up to MXN$7,735 1.92%
  • MXN$7,736 - $65,651 6.40%
  • MXN$65,652 - $115,375 10.88%
  • MXN$115,376 - $134,119 16%
  • MXN$134,120 - $160,577 17.92%
  • MXN$160,578 - $323,862 21.36%
  • MXN$323,863 - $510,451 23.52%
  • MXN$510,452 - $974,535 30%
  • MXN$974,536 - $1,299,380 32%
  • MXN$1,299,381 - $3,898,140 34%
  • MXN$3,898,141+ 35%

All residents and non-residents earning income in Mexico must file annual tax returns

🏛️ Social Security (IMSS)

Mexican social security contributions fund healthcare, pensions, and disability insurance:

  • Employee Contributions ~1.75%
  • Employer Contributions ~20-25%
  • Independent Workers Varies by income

IMSS contributions cover public healthcare, maternity leave, disability benefits, and retirement pensions. Rates vary based on salary level and risk classification.

🛒 IVA (Value Added Tax)

Mexico's consumption tax system with regional variations:

  • Standard Rate 16%
  • Border Zone Rate 8%
  • Essential Goods 0%

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.

📅 Key Tax Dates 2025

Important deadlines for Mexican taxpayers:

  • Tax Year 1 January - 31 December
  • Annual Return Filing April 1-30, 2025
  • Monthly IVA Returns 17th of following month
  • Bimonthly Payroll 17th of following month

Annual tax returns must be filed in April for the previous calendar year. Monthly obligations include IVA and payroll tax returns.

🏠 Common Deductions

Popular tax deductions for Mexican taxpayers:

  • Medical expenses Deductible
  • Education expenses Limited deduction
  • Mortgage interest Deductible
  • Charitable donations Up to 7%

Mexico offers various personal deductions including medical costs, school fees, funeral expenses, and voluntary retirement contributions to approved plans.

🌍 Special Tax Zones

Mexico offers special tax incentives in certain regions:

  • Maquiladora Programs Manufacturing incentives
  • Border Zone Benefits Reduced IVA (8%)
  • Free Trade Zones Import/export benefits

Businesses operating in border zones or maquiladora programs may qualify for reduced tax rates and special incentives to promote investment and employment.

Top 5 Mexican Tax Software 2025

Best tax preparation software for Mexican individuals and businesses

🥇 SAT Portal

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.

🥈 CONTPAQi

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.

🥉 AspelCOI

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.

📱 ContaYa

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.

💼 Facturama

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.

Top 5 Mexican Tax Accountants 2025

Leading tax professionals for Mexican tax compliance and planning

🏢 Contadores Locales México

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.

🏢 Despachos Contables Comunidad

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.

🏢 Servicios Fiscales En Línea MX

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.

🏢 Asesores Fiscales Expatriados

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.

🏢 Contabilidad Familiar México

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.

⚠️ Professional Services Disclaimer

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).

🌍 Compare with Other Countries

Explore tax systems in similar economies

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