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%
- 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
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.
Frequently asked
What is the income tax rate in Mexico?
The top marginal personal income tax rate in Mexico is 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.
What is the corporate tax rate in Mexico?
The headline corporate income tax rate is 30%.
Does Mexico tax capital gains?
Capital gains for individuals: 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..