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
How many income tax brackets does Mexico have?
Mexico has 11 progressive income tax brackets ranging from 1.92% on the lowest earners to 35% on the highest income earners. The brackets start at MXN 0 and go up to over MXN 5.1 million, meaning your tax rate increases as your income rises.
What is the maximum personal deduction I can claim in Mexico?
You can deduct up to 15% of your income or MXN 213,973, whichever is less. This includes standard personal deductions, though medical expenses and retirement/education accounts have separate limits that may apply in addition.
How much do I pay in Mexican Social Security (IMSS) as an employee?
As an employee, you contribute 3.25% of your gross income to the Mexican Social Security Institute (IMSS), with a maximum annual contribution of MXN 29,103. This contribution is tax deductible and only applies to earnings up to MXN 1,070,155 annually.
Do I pay income tax to both Mexico and my home country if I'm a foreign resident?
If you're a tax resident in Mexico, you're subject to Mexican income tax on your worldwide income. However, most countries have tax treaties with Mexico to prevent double taxation, so you may be able to claim foreign tax credits or exclusions depending on your specific situation and home country.
Are there state or regional income taxes in Mexico I should know about?
Mexican income tax is levied at the national level only. While some states like Mexico City have employer-side payroll taxes, these do not affect your personal take-home pay calculation, which is based on the national income tax brackets and deductions outlined here.
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