Mexico Tax Calculator (2026)
Income tax rates and take-home pay for Mexico
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 much income tax do I pay as an expat working in Mexico?
Mexico has a progressive income tax system with 11 tax brackets ranging from 1.92% on the lowest earnings up to 35% on income above MXN 5,107,703.93 annually. As a resident individual for Mexican tax purposes, you're taxed on your worldwide income. The actual tax you owe depends on which bracket your income falls into, but you can reduce your taxable income through personal deductions capped at the lesser of 15% of your income or MXN 213,973.
What is the Mexican Social Security (IMSS) employee contribution?
Employees in Mexico contribute 3.25% of their gross income to the Mexican Social Security Institute (IMSS), with a maximum annual contribution of MXN 29,103. This contribution is deductible from your taxable income and helps fund healthcare and social security benefits. The contribution applies to earnings up to MXN 1,070,155 annually.
Can I deduct personal expenses from my Mexican income tax?
Yes, you can claim personal deductions in Mexico, but they're capped at the lesser of 15% of your income or MXN 213,973 per year. Medical expenses without cash payment restrictions and contributions to retirement or education accounts have separate limits beyond this cap. Charitable contributions are also deductible but limited to 7% of your prior year's taxable income.
Are there state or local income taxes in Mexico in addition to federal tax?
This calculator covers national-level federal income tax only; Mexico does not have additional state or regional income tax layers. However, some states may have employer-side payroll taxes (such as 4% in Mexico City) that don't directly reduce your take-home pay. It's worth confirming your specific location's requirements with a local tax professional.
What income level puts me in the highest tax bracket in Mexico?
Mexico's highest tax bracket of 35% applies to annual income above MXN 5,107,703.93. Before reaching that top bracket, you'll move through 10 other progressive brackets, with rates gradually increasing from 1.92% to 34%. The progression is designed so that lower-income earners pay significantly less, with most working professionals falling into the 16% to 23.52% range depending on their earnings.
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