North & Central America
Mexico: tax at a glance
Residents pay tax on worldwide income at progressive rates up to 35%. There is a 16% IVA, and non-residents are taxed only on income sourced within the country.
Ways to relocate to Mexico
The residency and citizenship routes that lead here, weighed against the tax picture above.
The taxes
- Personal income (top)
- 35%Progressive rates run from roughly 1.9% to 35%, with the top rate of 35% applying to high incomes. Residents are taxed on worldwide income.
- Corporate income
- 30%
- Capital gains
- Taxed as ordinary income, up to 35%. Non-residents selling property or shares pay 25% of the gross amount or 35% of the net gain.
- VAT / IVA
- 16%
- Dividends (WHT)
- 10%
- Interest (WHT)
- Up to 35%, varying from 0% to 35% depending on the payer and the instrument.
- Royalties (WHT)
- 25%, rising to 35% for patents and trademarks.
- Social security (employee)
- Roughly 2–6%, paid into IMSS.
- Social security (employer)
- Roughly 20–35%, covering IMSS and Infonavit contributions, rated by risk.
- Wealth tax
- None
- Inheritance / estate
- None. Inheritances count as income in principle but are generally exempt.
- Property tax
- Predial, the municipal property tax, runs roughly 0.05–0.3% of cadastral value.
- Other
- State payroll tax of roughly 1–3%, paid by employers.
How the system works
- Tax system
- Worldwide (residence-based)
- Foreign income
- Taxed (worldwide)
- Taxes by citizenship
- No
- Exit tax
- No
- CFC rules
- Yes
- CRS
- Participating
A special regime for new arrivals
There is no special regime for foreign residents. Mexican tax residents are taxed on worldwide income. Residency arises at 183 days or on centre of vital interests. Note that immigration residency and tax residency are separate matters. Holding a residente temporal card does not itself make you a Mexican tax resident.
The rates below are indicative headline figures (top marginal, standard, and headline rates), reviewed 2026-07. Brackets, surcharges, and state, provincial or cantonal taxes vary. Treat this as a reference map, not advice.
Sources (2)
Secondary references