Mexico
Central America • UTC-6 • America/Mexico_CityMexican Income Tax System
Mexico's tax system is progressive, with personal income tax rates ranging from 1.92% to 35%. Corporate tax is set at 30%, and VAT is 16%.
Income Tax
1.92%–35%
Progressive rates
Corporate Tax
30%
Standard corporate tax rate
VAT / GST
16%
Standard VAT rate
Nomad Visa
Available
Temporary Resident Visa
Tax System Overview
Mexico employs a progressive tax system for personal income, with corporate taxes and VAT also playing significant roles.
System Type
Progressive personal income tax
Resident Taxation
Residents are taxed on worldwide income.
Non-Resident Taxation
Non-residents are taxed only on Mexican-source income.
Tax Year
January 1 – December 31
Income Tax Bands
Mexico's progressive income tax bands for 2025 based on annual taxable income in MXN.
Tax Treaty
Double Taxation Agreements help avoid double taxation on income earned in multiple countries.
United States of America
Treaty ActiveThe treaty between Mexico and the USA aims to prevent double taxation and fiscal evasion with respect to taxes on income.
Key Benefits
Reduces withholding tax rates on cross-border payments.- Clarifies residency status for tax purposes.
- Provides mechanisms to resolve tax disputes.
Totalization Agreement
Totalization agreements help workers avoid paying social security taxes in two countries.
United States of America
Agreement ActiveThe agreement between Mexico and the USA helps workers avoid dual social security contributions and ensures benefits coverage.
Coverage Areas
Facts
- Allows workers to combine periods of coverage in both countries.
- Applies to employees, self-employed individuals, and certain government workers.
Other Countries with Agreements
Business & Freelancing
Corporate Tax Rate
30% standard rate
VAT Registration
Mandatory for businesses with annual turnover exceeding MXN 2,000,000.
Freelancer Rules
Freelancers must register with the tax authorities and may be subject to simplified tax regimes.
Crypto Policy
Cryptocurrency gains are treated as capital gains and taxed accordingly.
Frequently Asked Questions
Digital Nomad & Benefits
Visa Details
Tax Perks
- No wealth tax on global assets
- Potential for reduced tax rates under certain conditions
Filing Roadmap
Register with SAT
Obtain a tax identification number (RFC) from the Mexican Tax Administration Service (SAT).
Gather Income Documents
Collect all relevant income documents, including employment slips, bank statements, and investment income records.
File Your Tax Return
Submit your tax return online through the SAT portal by April 30, including all necessary schedules and attachments.
Pay Any Tax Due
Ensure any taxes owed are paid by the filing deadline to avoid penalties and interest.