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 much income tax will I pay as an expat working in Mexico?
Mexico uses a progressive tax system with 11 income tax brackets ranging from 1.92% to 35%, depending on your annual earnings. As a resident individual for Mexican tax purposes, you'll be taxed on your worldwide income, but you can deduct up to 15% of your income or MXN 213,973 (whichever is less) as a personal deduction to reduce your taxable income.
What is the top income tax rate in Mexico?
The highest marginal income tax rate in Mexico is 35%, which applies to annual earnings above MXN 5,107,703.93. However, you only pay this rate on income within that top bracket; the rest of your income is taxed according to the lower brackets that apply to each portion.
Do I have to pay social security contributions in Mexico?
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.
Can I deduct charitable donations from my Mexican taxes?
Charitable contributions are allowed as a deduction, but they are limited to 7% of your prior year's taxable income. This means you'll need to track both your current year donations and your previous year's income to determine the maximum amount you can deduct.
Are there state or regional income taxes in Mexico in addition to the national tax?
This calculator covers national-level income tax only, as Mexico does not have state income tax layers. However, some states may impose payroll taxes that are typically paid by the employer and do not directly reduce your take-home pay, such as the 4% employer contribution in Mexico City.
What is the lowest income tax bracket in Mexico?
Mexico's lowest income tax bracket is 1.92% and applies to annual earnings from MXN 0 to MXN 10,135.11. After this first bracket, the rate increases to 6.40% for the next income tier, and continues progressively higher as your earnings increase.
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