Mexico Tax Calculator (2026)
Income tax rates and take-home pay for Mexico
Mexico Income Tax Brackets (2025)
| Bracket | Income Range | Rate |
|---|---|---|
| Bracket 1 | MX$0 - MX$8,952 | 1.9% |
| Bracket 2 | MX$8,952 - MX$75,985 | 6.4% |
| Bracket 3 | MX$75,985 - MX$133,536 | 10.9% |
| Bracket 4 | MX$133,536 - MX$155,230 | 16.0% |
| Bracket 5 | MX$155,230 - MX$185,853 | 17.9% |
| Bracket 6 | MX$185,853 - MX$374,838 | 21.4% |
| Bracket 7 | MX$374,838 - MX$590,796 | 23.5% |
| Bracket 8 | MX$590,796 - MX$1,127,927 | 30.0% |
| Bracket 9 | MX$1,127,927 - MX$1,503,902 | 32.0% |
| Bracket 10 | MX$1,503,902 - MX$4,511,707 | 34.0% |
| Bracket 11 | MX$4,511,707+ | 35.0% |
Social Security (IMSS)
| Bracket | Income Range | Rate |
|---|---|---|
| Mandatory Contribution | MX$0+ | 2.7% |
Capped at MX$28,057 per year
Key Facts
Tax Year
2025
Currency
MXN
Top Rate
35.0%
Brackets
11 brackets
Allowance
None
Social Contributions
1 item
Assumptions
- · Resident individual rates for 2025 used.
- · Mexico does not levy personal income taxes at the state or municipal level; payroll taxes are paid by the employer.
- · Social Security (IMSS) employee rate is calculated as an effective rate (~2.72%) based on the maximum annual contribution and the income threshold where the cap is reached as stated in the source.
- · Employment Subsidy (Subsidio para el empleo) is not included as it is not detailed in the provided PWC source.
- · Standard deductions are zero as per source text.
Frequently asked questions
How much income tax will I pay if I move to Mexico as a remote worker?
Mexico uses a progressive tax system with 11 income tax brackets ranging from 1.92% on your first 8,952.49 MXN up to 35% on income above 4,511,707.37 MXN. Your actual tax depends on your total income, so a remote worker earning 200,000 MXN annually would fall into a mid-range bracket around 21.36%, while someone earning 50,000 MXN would pay roughly 6.4%. You can use the calculator above to see your exact tax liability based on your expected income.
Do I have to pay state or local income taxes in Mexico?
No, Mexico does not levy personal income taxes at the state or municipal level. The federal income tax brackets shown here apply uniformly across the entire country, regardless of which state you live or work in. This means your tax burden is determined solely by the federal system, making it easier to calculate your take-home pay.
What is the Social Security contribution I'll pay as an employee in Mexico?
As an employee in Mexico, you contribute to IMSS (Instituto Mexicano del Seguro Social), the country's social security system, at an effective rate of approximately 2.72% of your gross income, with a maximum annual contribution of 28,057 MXN. This contribution is deducted from your salary but is not deductible for income tax purposes, meaning you pay income tax on your full gross income before the IMSS deduction is applied.
Is there a standard deduction or tax-free threshold in Mexico?
No, Mexico does not offer a standard deduction for residents. Taxation begins immediately on the first peso of income in the lowest bracket at 1.92%, so there is no income threshold below which you pay zero tax. This means even lower earners will have some tax liability, though the rate on initial income is relatively low.
How many tax brackets does Mexico have and what's the top rate?
Mexico has 11 progressive income tax brackets, with the top marginal rate of 35% applying to annual income above 4,511,707.37 MXN. The brackets are designed to be progressive, meaning you only pay the higher rates on income that falls within each bracket, not on your entire income. Use the calculator to see exactly how much you'll owe based on your specific salary.
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