Mexico
Individual - Taxes on personal income
Last reviewed - 20 July 2022Resident 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 2022:
Taxable income (MXN) | Basic tax | ||
Over | Not over | Tax on column 1 (MXN) | Tax on excess (%) |
0.01 | 7,735.00 | 0 | 1.92 |
7,735.01 | 65,651.07 | 148.51 | 6.40 |
65,651.08 | 115,375.90 | 3,855.14 | 10.88 |
115,375.91 | 134,119.41 | 9,265.20 | 16.00 |
134,119.42 | 160,577.65 | 12,264.16 | 17.92 |
160,577.66 | 323,862.00 | 17,005.47 | 21.36 |
323,862.01 | 510,451.00 | 51,883.01 | 23.52 |
510,451.01 | 974,535.03 | 95,768.74 | 30.00 |
974,535.04 | 1,299,380.04 | 234,993.95 | 32.00 |
1,299,380.05 | 3,898,140.12 | 338,944.34 | 34.00 |
3,898,140.13 | and above | 1,222,522.76 | 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 2022:
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.