Mexico Tax Calculator 2026: ISR Brackets, IMSS & Take-Home Pay

Mexico payroll withholding for employees combines ISR (Impuesto Sobre la Renta) and IMSS employee (obrera) contributions. This 2026 guide walks through the official SAT annual tariff, UMA-based IMSS caps, and take-home examples from the same engine as our Mexico salary calculator.

Mexico Tax System Overview (2026)

Key components

• ISR: Progressive federal income tax — 11 annual brackets from 1.92% to 35% (SAT Anexo 8 RMF 2026, DOF 28/12/2025)
• IMSS: Employee social security on Salario Base de Cotización (SBC), capped at 25 × UMA
• UMA 2026 (INEGI, from 1 Feb 2026): MX$117.31/day · MX$3,566.22/month · MX$42,794.64/year
• Payroll vs declaración: Employers withhold ISR monthly on ingreso gravable. Many Art. 151 deductions (medical, mortgage interest, education) apply mainly on the annual return, not on every nómina
• State wage tax: Employees do not pay a separate state income tax on salary. State payroll tax (ISN) is typically an employer cost

Who is a tax resident?

• Mexican tax residents: Worldwide income
• Non-residents: Mexican-source income (withholding rules differ)
• Common residency test: 183+ days in Mexico in a 12-month period, or a permanent home / center of vital interests in Mexico (confirm with SAT / a contador)

ISR Tax Brackets 2026

Annual tariff (Art. 96 LISR / Anexo 8 RMF 2026). Tax = cuota fija + marginal rate × income above the bracket lower limit.

Worked example — MX$300,000 gross (payroll model)

For a pure-salary employee (no aguinaldo/PTU in the period), our engine treats ingreso gravable as gross salary and calculates ISR and IMSS independently:

(Rounded; open the calculator for exact cents.)

IMSS Employee Contributions 2026

IMSS uses SBC, not the ISR base. Employee branches (Ley del Seguro Social):

SBC cap (2026): 25 × UMA annual = MX$1,069,866

Typical employee IMSS is roughly 2.4–2.8% of salary below the cap (not a flat 3%). Employer IMSS / INFONAVIT costs are separate and much higher.

IMSS benefits (high level)

• Medical care through IMSS
• Disability and life insurance coverage
• Maternity benefits
• Retirement / cesantía components
• Work-injury related protection (employer-heavy funding)

UMA, Aguinaldo & PTU Notes

Our payroll calculator focuses on salary ISR + IMSS. Aguinaldo and PTU change both cash timing and taxable portions — model them separately or with a contador.

Take-Home Ladder (2026 Engine)

Approximate annual sueldo neto for a single pure-salary employee (ISR + IMSS only):

For more salary bands and FAQs, see Mexico Tax Insights.

Deductions: Payroll vs Declaración Anual

On the paycheck (nómina)

• ISR tariff on ingreso gravable
• IMSS employee cuotas
• Optional salary reductions already in the CFDI (benefits, exempt percepciones)

Often claimed on the annual declaración (Art. 151 LISR — confirm current caps)

• Medical / dental expenses and some insurance premiums
• Mortgage interest on a primary home (subject to limits)
• Education-related expenses for dependents (subject to limits)
• Charitable donations to authorized donees
• Voluntary retirement savings (AFORE / complementary) within legal limits

Do not assume a large "personal exemption" is subtracted before payroll ISR — that is a common outdated simplification. Use SAT rules and your CFDI.

Self-Employed & Other Regimes

• RESICO / other regimes: Different filing and rate structures than employee nómina
• IVA: 16% may apply to taxable services/sales
• IMSS: Voluntary or mandatory depending on activity — not the same as employee obrera withholding
• Always verify the regime registered with SAT before comparing to employee examples above

Tax Planning Ideas (Employees)

1. Read your CFDI de nómina — confirm ISR and IMSS lines match expectations
2. Track Art. 151 expenses during the year for the declaración
3. AFORE / complementary savings — tax treatment depends on product and limits
4. Aguinaldo / PTU timing — exemptions are UMA-based; the taxable excess raises ISR
5. Treaty relief — if you have foreign income or dual residency, check Mexico's treaties

Tax Deadlines (Typical)

• Monthly: Employer ISR and IMSS withholdings / payments
• April: Individual annual income tax return (declaración anual) for the prior calendar year — confirm the exact SAT due date each year
• Self-employed / RESICO: Follow your regime's provisional payment calendar

Late filing can trigger surcharges and updates — check SAT for current penalties.

Using Our Mexico Tax Calculator

The calculator estimates:

• 2026 ISR from the official annual tariff
• IMSS employee cuotas with UMA-based SBC cap
• Sueldo neto and effective withholding rate

Typical inputs: annual (or equivalent) gross salary; include social security for employee modeling.

Not included by default: employer IMSS/INFONAVIT, state ISN, full aguinaldo/PTU packages, subsidio para el empleo edge cases, and every Art. 151 deduction.

Open the Mexico salary calculator →

Non-Residents & Expats

• Mexican-source employment income is generally taxable in Mexico
• Treaty countries may reduce double taxation — keep residency certificates and payroll docs
• Digital nomads / remote workers should confirm where duties are performed and which employer withholds

Common Mistakes

1. Using old ISR tables — 2026 Anexo 8 thresholds differ from prior years
2. Treating IMSS as a flat 3% — employee rates are branch-based and SBC-capped
3. Mixing ISR and IMSS bases — IMSS is not subtracted from ingreso gravable for payroll ISR
4. Ignoring UMA updates — exemptions and caps move when INEGI publishes the new UMA
5. Missing the declaración when you have deductible expenses or multiple income sources

Getting Professional Help

Consult a Contador Público or SAT-authorized advisor when you have:

• Self-employment or RESICO questions
• Cross-border income or dual residency
• Equity compensation, high PTU, or complex benefits
• Real estate or large Art. 151 deduction claims

Conclusion

For 2026, employee take-home in Mexico is driven by SAT ISR brackets (1.92%–35%) plus IMSS on capped SBC, using UMA MX$117.31/day. At MX$300,000 gross, a typical pure-salary model is about MX$258,580 net after ISR and IMSS.

Calculate your 2026 Mexico take-home → · Mexico Tax Insights hub →

Disclaimer: Educational overview only — not tax, legal, or financial advice. Confirm figures on SAT, IMSS, and INEGI publications and with a qualified professional.

References (2026)

Tax & social contributions

• SAT — Anexo 8 RMF 2026 (ISR tariff)
• IMSS — Ley del Seguro Social
• INEGI — UMA 2026

Figures align with the official sources above and this site's Mexico paycheck engine. Not financial advice.