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Mexico Tax Calculator 2025: Complete Guide to Mexican Income Tax & IMSS

Calculate your Mexico income tax with our comprehensive guide covering ISR tax brackets, IMSS social security, deductions, and tax planning strategies for residents and expats.

Tax Calculator TeamDecember 17, 202512 min read
mexico taxmexican income taxISRIMSStax calculatorSATmexico tax calculator

Mexico Tax Calculator 2025: Complete Guide to Mexican Income Tax & IMSS


Mexico's tax system features progressive income tax rates (ISR), comprehensive social security (IMSS), and various deductions. This comprehensive guide will help you understand and calculate your tax liability in Mexico for 2025.


Mexico Tax System Overview


Key Components

  • ISR (Impuesto Sobre la Renta): Personal income tax with progressive rates from 1.92% to 35%
  • IMSS (Instituto Mexicano del Seguro Social): Social security contributions (~3% employee share)
  • Deductions: Various personal, medical, and education deductions
  • Tax Credits: Dependent credits and other reliefs
  • Monthly Filing: Employees have tax withheld monthly

    • Who is Tax Resident?

  • Mexican residents: Taxed on worldwide income
  • Non-residents: Taxed on Mexican-source income only
  • Resident for tax purposes: Present in Mexico for 183+ days in a 12-month period or have a permanent home in Mexico

    • ISR Tax Brackets 2025


    Progressive Tax Rates


    | Annual Income (MXN) | Tax Rate |

    |---------------------|----------|

    | Up to MXN 7,735 | 1.92% |

    | MXN 7,736 - MXN 65,651 | 6.4% |

    | MXN 65,652 - MXN 115,375 | 10.88% |

    | MXN 115,376 - MXN 134,119 | 16% |

    | MXN 134,120 - MXN 160,577 | 17.92% |

    | MXN 160,578 - MXN 323,862 | 21.36% |

    | MXN 323,863 - MXN 510,451 | 23.52% |

    | MXN 510,452 - MXN 974,535 | 30% |

    | MXN 974,536 - MXN 1,299,380 | 32% |

    | Over MXN 1,299,380 | 35% |


    Example Calculation

    Annual income: MXN 300,000

  • MXN 0 - MXN 7,735: MXN 149 (1.92%)
  • MXN 7,736 - MXN 65,651: MXN 3,707 (6.4%)
  • MXN 65,652 - MXN 115,375: MXN 5,410 (10.88%)
  • MXN 115,376 - MXN 134,119: MXN 2,999 (16%)
  • MXN 134,120 - MXN 160,577: MXN 4,736 (17.92%)
  • MXN 160,578 - MXN 300,000: MXN 29,755 (21.36%)
  • Total ISR: MXN 46,756

    • IMSS (Social Security) Contributions


    IMSS Rates 2025

  • Employee contribution: ~3% of salary
  • Employer contribution: ~25-30% of salary
  • Covers: Health insurance, retirement, disability, maternity, work injury

    • IMSS Calculation Example

    Monthly income: MXN 25,000

  • Employee IMSS: MXN 25,000 × 3% = MXN 750
  • Annual IMSS: MXN 9,000

    • IMSS Benefits

  • Medical services (public healthcare)
  • Disability benefits
  • Maternity benefits
  • Retirement pension
  • Work injury compensation
  • Unemployment benefits

    • Tax Deductions and Credits


    Standard Deductions

  • Personal exemption: MXN 151,140 per year (2025)
  • Medical expenses: Up to 15% of gross income
  • Education expenses: Up to MXN 29,200 per dependent
  • Mortgage interest: Up to MXN 750,000 per year
  • Retirement contributions: Up to 10% of gross income (AFORE)

    • Other Deductible Expenses

  • Donations to approved charities (up to 7% of gross income)
  • Medical insurance premiums
  • Funeral expenses
  • Disability expenses

    • Tax Credits

  • Dependent credit: MXN 1,200 per dependent per year
  • Elderly credit: MXN 1,200 (over 65)
  • Disability credit: MXN 1,200

    • Total Tax Burden Example


    Single Person Earning MXN 300,000

  • ISR: MXN 46,756
  • IMSS: MXN 9,000
  • Total tax: MXN 55,756
  • Net income: MXN 244,244
  • Effective rate: 18.6%

    • Married Couple with 2 Children Earning MXN 500,000

  • Personal exemption: MXN 151,140
  • Dependent credits: MXN 2,400 (2 children)
  • Taxable income: MXN 348,860
  • ISR: MXN 78,234
  • IMSS: MXN 15,000
  • Total tax: MXN 93,234
  • Net income: MXN 406,766
  • Effective rate: 18.6%

    • Self-Employed Tax


    Régimen de Incorporación Fiscal (RIF)

  • Simplified tax regime for small businesses
  • Gradual tax rates (0% to 100% over 10 years)
  • Annual income limit: MXN 3.5 million
  • No IMSS required (can opt-in)

    • Regular Self-Employed

  • ISR: Same progressive rates as employees
  • IMSS: Voluntary enrollment available
  • Must file monthly (if income > MXN 300,000)
  • IVA (VAT): 16% on services (if applicable)

    • Tax Planning Strategies


    1. Maximize Deductions

  • Claim all dependents
  • Medical and education expenses
  • Mortgage interest deductions
  • Retirement contributions (AFORE)

    • 2. Use Tax-Advantaged Accounts

  • AFORE contributions (up to 10% of income)
  • Tax-deferred growth
  • Employer matching available

    • 3. Medical Expenses

  • Up to 15% of gross income deductible
  • Includes insurance premiums
  • Keep all receipts

    • 4. Education Expenses

  • Up to MXN 29,200 per dependent
  • School fees, books, materials
  • University tuition included

    • Common Deductions


    Medical Expenses

  • Medical consultations
  • Prescription drugs
  • Dental care
  • Health insurance premiums
  • Up to 15% of gross income

    • Education Expenses

  • School fees
  • University tuition
  • Books and materials
  • Up to MXN 29,200 per dependent

    • Housing Expenses

  • Mortgage interest (up to MXN 750,000)
  • Property taxes
  • Home improvements (limited)

    • Tax Deadlines


    Key Dates

  • Monthly: Tax withholding for employees
  • April 30: Annual tax return due
  • Monthly: IMSS contributions
  • Quarterly: Estimated tax payments (self-employed)

    • Late Filing Penalties

  • Minimum: MXN 1,000
  • Maximum: 40% of tax due
  • Interest: 1.47% per month

    • Using Our Mexico Tax Calculator


    Our calculator provides:

  • Accurate 2025 ISR calculations
  • IMSS contribution estimates
  • Deduction applications
  • Net income after all taxes
  • Effective tax rate
  • Dependent credit calculations

    • Input required:

  • Annual income
  • Marital status
  • Number of dependents
  • Medical/education expenses
  • Mortgage interest
  • Retirement contributions

    • High Earners


    Additional Considerations

  • Higher marginal rates (up to 35%)
  • Wealth tax considerations
  • International tax planning
  • Investment optimization

    • Exit Tax

  • Tax on leaving Mexico
  • Deemed disposal rules
  • Consider timing of departure

    • Non-Resident Tax


    Mexican-Source Income

  • Employment in Mexico
  • Rental income from Mexican property
  • Dividends from Mexican companies
  • Subject to Mexican tax

    • Tax Treaties

  • Mexico has treaties with many countries
  • Prevents double taxation
  • May reduce withholding taxes

    • Common Mistakes to Avoid


    1. Not Claiming Dependents

  • MXN 1,200 per dependent
  • Significant tax savings
  • Include all eligible dependents

    • 2. Missing Deductions

  • Medical expenses up to 15%
  • Education expenses
  • Mortgage interest
  • Retirement contributions

    • 3. IMSS Calculation Errors

  • Employee share is ~3%
  • Employer pays majority
  • Different rates for different income levels

    • 4. Late Filing

  • April 30 deadline
  • Significant penalties
  • Interest charges

    • Getting Professional Help


    When to Consult a Tax Advisor


    Complex situations:

  • Multiple income sources
  • Self-employment
  • International tax issues
  • High net worth individuals

    • Life events:

  • Marriage or divorce
  • Having children
  • Buying property
  • Starting a business

    • Finding Qualified Advisors


    Look for:

  • Contador Público (CP)
  • SAT-registered tax advisors
  • International tax specialists
  • Mexican tax law experts

    • Conclusion


    Mexico's tax system combines progressive income tax with comprehensive social security. Understanding ISR rates, IMSS contributions, and available deductions is essential for accurate tax planning.


    With progressive rates from 1.92% to 35% and IMSS at ~3%, your total tax burden can be manageable with proper planning. The generous deductions for medical expenses, education, and mortgage interest can significantly reduce your liability.


    Use Our Free Mexico Tax Calculator →


    Get an accurate estimate of your tax liability and net income. For complex situations, especially involving self-employment or international tax matters, consult with a qualified contador público.


    Disclaimer: This guide provides general information only. Mexican tax law changes regularly, and individual circumstances vary. Always consult with a qualified tax professional for advice specific to your situation.