Tax in Mexico: VAT, income tax, company tax, capital gains
16%
Mexico charges 16% IVA on most goods and services. The rate is verified against Servicio de Administracion Tributaria (SAT) on 19 August 2026; the top personal income-tax rate is 35% (2026 tax year, Servicio de Administración Tributaria (SAT) — Anexo 8 RMF 2026, DOF), and the headline company tax rate is 30% (OECD Corporate Tax Statistics).
IVA in Mexico
Value-added: IVA is charged on sales and reclaimed on purchases, so only the added value is taxed. A separate 8% IVA applies only to qualifying sales in the northern and southern border regions under a conditional fiscal-stimulus decree, not as a general national reduced rate — so it is not listed as one here.
- Standard rate
- 16%
- Local name
- IVA — Value Added Tax
- Type
- VAT
- Reduced rates
- None on record
- Filing
- Monthly
- Authority
- Servicio de Administracion Tributaria (SAT)
- Current rate since
- 1 January 2000
Income tax in Mexico
The top personal income-tax band is 35% for the 2026 tax year.
Company tax in Mexico
The headline corporate income tax rate is 30%. In effect since 1 January 2026.
Indicative only: confirm with Mexico's national tax authority. OECD 2026: central statutory CIT 30%, combined (central+sub-central) 30%
Capital gains tax in Mexico
- Shares
- 10% definitive (pago definitivo, not accumulated with other income) on the net annual gain from sales of Mexican-company shares (and listed foreign shares/index titles) through concessioned Mexican stock exchanges or recognised markets (LISR art. 129)
- Property
- Taxed as income: indexed gain divided by years held (max 20); that annual slice is added to ordinary income at progressive rates (art. 152 tariff); the remaining non-accumulable portion is taxed at the taxpayer's effective rate for the year or a 5-year average effective rate (LISR art. 120)
- Holding period
- None; no short/long distinction
Did you know? Mexico tax facts
Mexico halves its VAT near the border: a presidential decree hands businesses in the northern frontier municipalities a credit worth 50% of the 16% rate, so the tax they actually charge is 8%.
The decree was published in the Diario Oficial de la Federación on 31 December 2018 and took effect on 1 January 2019, covering listed municipalities in Baja California, Sonora, Chihuahua, Coahuila de Zaragoza, Nuevo León and Tamaulipas. It was written to run only through 2019 and 2020, and has been extended repeatedly since.
Source: Diario Oficial de la Federación — Decreto de estímulos fiscales región fronteriza norte ↗Mexico's income tax law in force today took effect on 1 January 2002, replacing a statute that had stood since 1981; individuals pay ISR on a scale rising to 35%, companies a flat 30%.
Spanish Wikipedia: the law 'entró en vigor el 1 de enero de 2002', replacing a law in force since 1981; personal rates run 'desde el 0% al 35%' and corporate tax is 'del 30% para todas las personas morales'.
Source: Wikipedia (ES) — Impuesto sobre la renta (México) · checked 10 October 2026 ↗
More stories, for every country that has one, on the tax facts page.
Ask your AI assistant about tax in Mexico
The figures on this page are callable by any MCP-compatible assistant through the free Tax MCP. Add https://taxmcp.ai2fin.com as a custom connector in Claude, ChatGPT, Cursor or your own agent — no login, no API key — then ask:
- “What is the IVA rate in Mexico, and what is the source?”
- “Estimate income tax in Mexico on MXN 60,000 for 2026.”
- “What is the company tax rate in Mexico and how is it sourced?”
Connect in three steps, and what a connected answer looks like: Tax MCP.
Mexico, answered
Questions about tax in Mexico
- What is the IVA rate in Mexico?
- The standard IVA (Value Added Tax) rate in Mexico is 16%, verified against Servicio de Administracion Tributaria (SAT) on 19 August 2026. Value-added: IVA is charged on sales and reclaimed on purchases, so only the added value is taxed. A separate 8% IVA applies only to qualifying sales in the northern and southern border regions under a conditional fiscal-stimulus decree, not as a general national reduced rate — so it is not listed as one here.
- What is the top income tax rate in Mexico?
- The top personal income-tax band in Mexico is 35% for the 2026 tax year, verified against Servicio de Administración Tributaria (SAT) — Anexo 8 RMF 2026, DOF on 6 October 2026. The free income-tax calculator on this site works through the bands below it, and shows the rate table it used.
- What is the company tax rate in Mexico?
- The headline corporate income tax rate in Mexico is 30%, as published by OECD Corporate Tax Statistics (checked 6 October 2026, verification pending). Indicative only: confirm with Mexico's national tax authority. OECD 2026: central statutory CIT 30%, combined (central+sub-central) 30%
- How is capital gains tax charged in Mexico?
- In Mexico, the regime is mixed, verified against SAT (hosting Camara de Diputados compiled text of the LISR, last reform DOF 09-12-2019) on 6 October 2026. On shares: 10% definitive (pago definitivo, not accumulated with other income) on the net annual gain from sales of Mexican-company shares (and listed foreign shares/index titles) through concessioned Mexican stock exchanges or recognised markets (LISR art. 129) Holding period: None; no short/long distinction
- Can an AI assistant look up tax rates for Mexico?
- Yes. The free Tax MCP at https://taxmcp.ai2fin.com gives Claude, ChatGPT, Cursor or any MCP-compatible agent the same sourced figures as this page: the IVA rate, an income-tax estimate, the company tax rate, the capital gains rule and a side-by-side comparison with other countries, each answer citing the authority and the date it was checked. Add the endpoint as a custom connector; there is no login or API key.
Sources
- Servicio de Administracion Tributaria (SAT)
- Servicio de Administración Tributaria (SAT) — Anexo 8 RMF 2026, DOF
- OECD Corporate Tax Statistics
- SAT (hosting Camara de Diputados compiled text of the LISR, last reform DOF 09-12-2019)
- Diario Oficial de la Federación — Decreto de estímulos fiscales región fronteriza norte
- Wikipedia (ES) — Impuesto sobre la renta (México)
Last checked 10 October 2026. General information computed from published government rates, not tax advice. Check the linked authority or a registered adviser before relying on a figure.
See every rate side by side in the tax rates table, put Mexico next to another country in the comparison tool, or read the tax facts.
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