Mexico

Individual - Taxes on personal income

Last reviewed - 01 February 2024

Resident individuals are subject to Mexican income tax on their worldwide income, regardless of their nationality. Non-residents, including Mexican citizens who can prove residence for tax purposes in a foreign country, are taxed only on their Mexican-source income.

Personal income tax rates

The following tax rates are effective for resident individuals for calendar year 2024:

Taxable income (MXN) Basic tax
Over Not over Tax on column 1 (MXN) Tax on excess (%)
0.01 8,952.49 0 1.92
8,952.50 75,984.55 171.88 6.40
75,984.56 133,536.07 4,461.94 10.88
133,536.08 155,229.80 10,723.55 16.00
155,229.81 185,852.57 14,194.54 17.92
185,852.58 374,837.88 19,682.13 21.36
374,837.89 590,795.99 60,049.40 23.52
590,796.00 1,127,926.84 110,842.74 30.00
1,127,926.85 1,503,902.46 271,981.99 32.00
1,503,902.47 4,511,707.37 392,294.17 34.00
4,511,707.38 and above 1,414,947.85 35.00

If the employee is considered a non-resident for Mexican tax purposes, the tax rate applicable to compensation will vary from 15% to 30%. The first MXN 125,900 of employment income received in a 12-month floating period will be tax exempt.

The following tax table is applicable to income tax with respect to income earned by non-residents for the calendar year 2024:

Taxable income (MXN) Tax rate (%)
Over Not over
0 125,900 Exempt
125,900 1,000,000 15
1,000,000 and above 30

Non-residents are subject to withholding taxes (WHTs) on Mexican-source interest income at rates varying from 0% to 35%, depending on several factors. Non-residents are subject to Mexican tax on gains arising from sales of real property located in Mexico (including shares of foreign companies holding a significant amount of Mexican real property) as well as the sale of shares of Mexican companies. Generally, when a capital gain is subject to tax, the non-resident investor can elect to pay either a flat rate of 25% of the gross proceeds or 35% of the net gain. Sales of shares in the Mexican stock exchange are subject to a flat 10% tax withholding on the profit from said transaction.

Other types of Mexican-source income (including rents and royalties) are also subject to WHTs when paid to a non-resident. In the case of dividends and other corporate distributions from Mexican companies, since 2014, there is a 10% tax withholding on the dividends from corporate profits generated after 2013.