How is Mexican income tax (ISR) calculated?

Mexico taxes individuals on a progressive annual tariff (ISR) with marginal rates from 1.92% up to 35%. The official SAT table uses a fixed fee (cuota fija) plus a rate on the income that exceeds each bracket’s lower limit; that fixed fee is just the accumulated tax of the lower brackets, so it is identical to a marginal-bracket system. Only the income within each bracket is taxed at that bracket’s rate.

What income should I enter?

Enter your taxable income (ingreso gravable) — income after any personal deductions (deducciones personales) such as medical expenses, mortgage interest, donations and voluntary retirement contributions, which are capped. Mexico has no standard deduction, so deductions are individual-specific and not estimated here; enter the taxable figure for an accurate result.

What is the subsidio para el empleo?

The subsidio para el empleo (employment subsidy) is a credit that reduces or eliminates ISR for low earners. It is not applied by this calculator, so for very low incomes your actual tax may be lower than shown.

Does this include IMSS social security?

No. Mandatory IMSS social-security contributions are separate from ISR and are not included. They reduce your take-home pay but are not part of the income tax brackets.

Do Mexican states charge income tax?

No. Mexican states do not levy personal income tax on individuals (state payroll taxes are paid by employers), so there is no region selector and the figure is the federal ISR only.

What is the difference between effective and marginal tax rate?

Your effective rate is total tax divided by income (your true average). Your marginal rate is the rate on your next peso, set by the highest bracket you reach. Because lower brackets use low rates (starting at 1.92%), your effective rate is well below your marginal rate.

Can I use this for previous years?

Yes. Use the year selector to view 2023, 2024, 2025 or the latest 2026. The 2023 and 2024 annual tariffs are identical; 2025 and 2026 apply an inflation-indexed estimate pending the official SAT publication.

What is not included?

This tool does not include personal deductions, the employment subsidy, IMSS contributions, capital gains, dividends, or simplified regimes such as RESICO. It uses the annual tariff, not the monthly withholding tariff. Consult the SAT or a contador for accurate figures.

Mexico Income Tax Calculator

Enter your taxable income to estimate your SAT ISR, effective rate and take-home pay. Uses the progressive annual tariff (1.92% up to 35%) with rules for multiple years.

Updated June 2026

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Tax Calculator

Mexico — 2026 Tax Year

2026 Tax Year

Tax Year

Select the tax year to view applicable rules and rates

This is an estimate. Consult a tax professional for accurate calculations.

Annual Gross Income (MX$ MXN)

Filing Status

Enter your income to calculate

Fill in your gross income and filing status, then calculate to see your tax breakdown.

How to use Mexico Income Tax Calculator

This Mexico income tax calculator estimates the federal personal income tax (ISR — Impuesto Sobre la Renta) an individual owes based on taxable income and the calendar year you select (2023, 2024, 2025 or 2026). Mexico uses a progressive annual tariff that starts at 1.92% and rises to 35%, so the calculator shows your effective rate, marginal rate and a bracket-by-bracket breakdown plus estimated take-home. Enter your taxable income (ingreso gravable) — income after any personal deductions — for the most accurate result.

Select your calendar year (2023, 2024, 2025, or 2026) from the dropdown.
Enter your annual taxable income in Mexican pesos (after any personal deductions).
Keep the filing status as Individual — Mexico taxes individuals, not couples.
Click Calculate to see your ISR, effective rate and marginal rate.
Review the bracket-by-bracket breakdown and your estimated take-home pay.

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How Mexico’s ISR brackets work

Mexico uses a progressive annual tariff. The official SAT table for each bracket lists a lower limit, an upper limit, a fixed fee (cuota fija) and a percentage applied to the income above the lower limit. The fixed fee equals the total tax of all lower brackets, so the system is mathematically identical to ordinary marginal brackets: only the income within each band is taxed at that band’s rate. For example, on $400,000 of taxable income, the tax accumulates through the 1.92%–21.36% bands ($60,049) and then taxes the final slice above $374,837.88 at 23.52%, for a total of about $65,968 — an effective rate near 16.5% versus a 23.52% marginal rate.

Annual ISR tariff (2024; identical for 2023)
Taxable Income (MXN)	Rate on excess
0.01 – 8,952.49	1.92%
8,952.50 – 75,984.55	6.40%
75,984.56 – 133,536.07	10.88%
133,536.08 – 155,229.80	16.00%
155,229.81 – 185,852.57	17.92%
185,852.58 – 374,837.88	21.36%
374,837.89 – 590,795.99	23.52%
590,796.00 – 1,127,926.84	30.00%
1,127,926.85 – 1,503,902.46	32.00%
1,503,902.47 – 4,511,707.37	34.00%
4,511,707.38+	35.00%

Deductions, subsidy and contributions

Mexico has no standard deduction. Instead, individuals may claim personal deductions (deducciones personales) — medical/dental expenses, mortgage interest, school transport, donations and voluntary retirement savings — subject to an overall annual cap. A subsidio para el empleo (employment subsidy) further reduces ISR for low earners. Separately, IMSS social-security contributions are mandatory but are not income tax. This calculator models the ISR tariff only and asks you to enter taxable income, so personal deductions, the employment subsidy and IMSS are documented here rather than estimated.

Annual indexation and the 2025 estimate

Mexico indexes the ISR tariff limits for inflation while keeping the marginal rates fixed: when accumulated inflation since the last update exceeds 10%, the limits (and fixed fees) are adjusted. The annual tariff was stable across 2022–2024, so the 2023 and 2024 schedules are identical. The 2025 schedule here applies an estimated ~5% inflation adjustment to the 2024 limits pending the official SAT publication, so for the same income the 2025 estimate is slightly lower than 2024.

Effective versus marginal tax rate

Your effective tax rate is your total ISR divided by total income — your true average. Your marginal rate is the rate on your next peso, set by the highest bracket you reach. On $400,000 of taxable income your marginal rate is 23.52%, but because the first bands are taxed at just 1.92%–21.36%, your effective rate is only about 16.5%. Knowing the difference helps when weighing a raise, bonus or extra freelance work.

Worked examples

Individual, $100,000 taxable, 2024

Inputs: $100,000 taxable income

Result: ~$7,074.82 ISR · 7.07% effective · 10.88% marginal

Individual, $400,000 taxable, 2024

Inputs: $400,000 taxable income

Result: ~$65,967.54 ISR · 16.49% effective · 23.52% marginal

Individual, $1,000,000 taxable, 2024

Inputs: $1,000,000 taxable income

Result: ~$233,603.95 ISR · 23.36% effective · 30% marginal

Glossary

ISR (Impuesto Sobre la Renta): Mexico’s federal income tax, levied progressively from 1.92% to 35%.
SAT: Servicio de Administración Tributaria — Mexico’s tax authority.
Cuota fija: The fixed fee in each row of the SAT tariff; it equals the accumulated tax of all lower brackets.
Deducciones personales: Itemized personal deductions (medical, mortgage interest, donations, etc.), subject to an annual cap; not modelled here.
Subsidio para el empleo: An employment subsidy that reduces or eliminates ISR for low earners.
Ingreso gravable: Taxable income — the figure to enter in this calculator.
Effective tax rate: Total tax owed divided by total income — your true average tax rate.
Marginal tax rate: The tax rate applied to your next peso of income, set by the highest bracket you reach.

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