Mexico Tax Calculator (2026)
Income tax rates and take-home pay for Mexico
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Mexico Income Tax Brackets (2026)
| Bracket | Income Range | Rate |
|---|---|---|
| 1.92% bracket | MX$0 - MX$10,135 | 1.9% |
| 6.40% bracket | MX$10,135 - MX$86,022 | 6.4% |
| 10.88% bracket | MX$86,022 - MX$151,176 | 10.9% |
| 16.00% bracket | MX$151,176 - MX$175,736 | 16.0% |
| 17.92% bracket | MX$175,736 - MX$210,404 | 17.9% |
| 21.36% bracket | MX$210,404 - MX$424,354 | 21.4% |
| 23.52% bracket | MX$424,354 - MX$668,840 | 23.5% |
| 30.00% bracket | MX$668,840 - MX$1,276,926 | 30.0% |
| 32.00% bracket | MX$1,276,926 - MX$1,702,568 | 32.0% |
| 34.00% bracket | MX$1,702,568 - MX$5,107,704 | 34.0% |
| 35.00% bracket | MX$5,107,704+ | 35.0% |
Mexican Social Security Institute (IMSS) employee contribution
| Bracket | Income Range | Rate |
|---|---|---|
| IMSS employee rate | MX$0 - MX$1,070,155 | 3.3% |
Capped at MX$29,103 per year
Key Facts
Tax Year
2026
Currency
MXN
Top Rate
35.0%
Brackets
11 brackets
Allowance
None
Social Contributions
1 item
Assumptions
- · Model assumes resident individual for Mexican tax purposes with worldwide income.
- · Payroll taxes (e.g., 4% in Mexico City) are employer-side only and excluded from employee net pay calculation.
- · Personal deductions capped at lesser of 15% of income or MXN 213,973 (five times annual UMA of MXN 42,794.60). Medical expenses without cash payment restriction and retirement/education accounts have separate limits.
- · Charitable contributions limited to 7% of prior year's taxable income; conservative estimate uses current year 7% for forward projection.
- · Social security maximum annual employee contribution is MXN 29,103, applicable to earnings above MXN 1,070,155 annually.
- · Non-resident regime with exemption on first MXN 125,900 not modeled; assumes resident status.
- · No subnational income tax layers modeled; focus is national-level tax only.
Frequently asked questions
What is the income tax rate in Mexico?
Mexico has a progressive income tax system with 11 brackets ranging from 1.92% on the lowest incomes to 35% on incomes above MXN 5,107,703.93 annually. The rate you pay depends on which bracket your income falls into, with rates increasing as your income increases. For example, income between MXN 10,135.12 and MXN 86,022.11 is taxed at 6.40%, while income between MXN 424,353.98 and MXN 668,840.14 is taxed at 23.52%.
How much can I deduct from my taxable income in Mexico?
You can claim personal deductions up to the lesser of 15% of your gross income or MXN 213,973 per year. Additionally, certain expenses like medical costs and contributions to retirement or education accounts have separate deduction limits. Keep in mind that charitable contributions are capped at 7% of your prior year's taxable income.
Do I need to pay social security contributions in Mexico if I work there?
Yes, as an employee in Mexico you must contribute to the Mexican Social Security Institute (IMSS) at a rate of 3.25% on your gross income, up to a maximum annual contribution of MXN 29,103. This contribution is deductible from your taxable income, which helps reduce your overall tax burden. The maximum applies once your annual earnings exceed MXN 1,070,155.
What is considered taxable income in Mexico?
As a resident for Mexican tax purposes, you must report worldwide income to the Mexican tax authorities. Your taxable income is calculated from your gross income minus eligible deductions, such as personal deductions (capped at 15% of income or MXN 213,973), IMSS contributions, and certain other qualifying expenses. The model assumes resident status; non-residents have different rules and may qualify for exemptions on certain income.
Are there state or regional income taxes in Mexico I should know about?
This calculator focuses on Mexico's national-level income tax only and does not model subnational or state-specific income taxes. While some states may have additional payroll-related taxes (for example, Mexico City has employer-side payroll taxes), these are not included in the employee net pay calculation shown here. You should verify with a local tax advisor if you are relocating to a specific state or city.
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