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Mexico tax

Special regime for new residents: 1% to 2.5% of monthly collected income.

Checked against official sources on Change log

Special regimes for new residents

Special regime

Mexico RESICO (régimen simplificado de confianza): 1% to 2.5% of monthly collected income for individuals with income up to MXN 3.5 million

2.5% tax

Details
  • On: Monthly income collected and covered by digital tax invoices (CFDI)
  • Limit: MXN 3.5M/yr ≈ $191k

Individuals who carry out only business, professional or temporary property-letting activities and had income of no more than MXN 3,500,000 (≈ $191,000) in the previous year may pay income tax at 1% to 2.5% of monthly collected income, invoiced and without deductions: 1.00% up to MXN 25,000, (≈ $1,370) 1.10% to 50,000, 1.50% to 83,333.33, 2.00% to 208,333.33 and 2.50% to 3,500,000. 5 6

Taxed on

Monthly income collected and covered by digital tax invoices (CFDI), excluding VAT, with no deductions. Rates: up to MXN 25,000 (≈ $1,370) 1.00%; up to 50,000 1.10%; up to 83,333.33 1.50%; up to 208,333.33 2.00%; up to 3,500,000 2.50%. Monthly return and payment by the 17th of the following month; annual return required (art. 113-F).

Who it applies to

  • Individual carrying out only business, professional or temporary use of property activities, with total income of those activities in the preceding year not above MXN 3,500,000 (≈ $191,000); new taxpayers may opt in when they expect income not to exceed that limit.
  • May also have wage income (Chapter I) or interest income (Chapter VI) provided total income of all those activities in the preceding year does not exceed MXN 3,500,000 (≈ $191,000).
  • A taxpayer whose income exceeds MXN 3,500,000 (≈ $191,000) at any time in the year, or who fails the obligations in art. 113-G, leaves the regime from the following month.

Exclusions

  • Not available to partners, shareholders or members of legal entities, or related parties.
  • Not available to foreign residents with permanent establishments in Mexico, or to persons with income under preferential tax regimes.
  • Not available to persons receiving the income in art. 94 sections III to VI.
  • A taxpayer removed for non-compliance with tax obligations cannot return to the regime.

Limits

  • MXN 3,500,000 a year (≈ $191,000) · Maximum income of the preceding year (and of the current year) for the regime
  • MXN 25,000 a month (≈ $1,370) · 1.00% band: monthly collected income up to this amount
  • MXN 208,333.33 a month (≈ $11,400) · 2.00% band ends; 2.50% applies up to MXN 3,500,000 (≈ $191,000)

Visas

The regime depends on the individual's tax registration and activity, not the visa category.

Other taxes

VAT is charged separately and is excluded from the monthly base.

Checked against official sources on Change log

Standard rules and foreign-source income

Standard rules

Mexico personal income tax: residents taxed on worldwide income

Worldwide income

Details
  • On: Worldwide income of Mexican residents
  • Who: Residence is decided by a home
  • Limit: MXN 10k/yr ≈ $550

Persons resident in Mexico pay income tax on all their income wherever the source is located (LISR art. 1 fr. I); non-residents pay only on Mexican-source income or income attributable to a permanent establishment. The 2026 annual tariff (LISR art. 152, Anexo 8 RMF 2026) runs from 1.92% to a 35% marginal rate on taxable income above MXN 5,107,703.93 (≈ $279,000). 1 2 3 4

Taxed on

Worldwide income of Mexican residents; Mexican-source income of non-residents without a permanent establishment. Annual tariff for 2026 (art. 152, Anexo 8 RMF 2026, DOF 28 December 2025): 1.92% up to MXN 10,135.11 (≈ $550); 6.40% to 86,022.11; 10.88% to 151,176.19; 16.00% to 175,735.66; 17.92% to 210,403.69; 21.36% to 424,353.97; 23.52% to 668,840.14; 30.00% to 1,276,925.98; 32.00% to 1,702,567.97; 34.00% to 5,107,703.92; 35.00% above, each applied to the excess over the lower limit plus a fixed quota.

Who it applies to

  • Residence is decided by a home (casa habitación) in Mexico: a person with no home in Mexico is a non-resident; a person with homes in Mexico and another country is treated as a non-resident if more than 50% of total calendar-year income is generated in a country other than Mexico, or if the main centre of professional activities is in another country (SAT guidance on foreign residents).

Exclusions

  • Nationality and visa type do not exempt a Mexican resident from tax on foreign-source income.
  • Mexican-source income of non-residents is taxed under the rules for foreign residents regardless of the client's location.

Limits

  • MXN 10,135.11 a year (≈ $550) · 1.92% on taxable income up to this amount (2026 annual tariff)
  • MXN 86,022.11 a year (≈ $4,700) · 6.40% on the excess over MXN 10,135.11 (≈ $550) up to this amount
  • MXN 424,353.97 a year (≈ $23,200) · 21.36% on the excess over MXN 210,403.69 (≈ $11,500) up to this amount; 23.52% then 30% apply above
  • MXN 1,276,925.98 a year (≈ $69,800) · 30% band ends; 32% to MXN 1,702,567.97 (≈ $93,100) and 34% to MXN 5,107,703.92 (≈ $279,000)
  • MXN 5,107,703.93 a year (≈ $279,000) · 35% marginal rate from this taxable income (fixed quota MXN 1,601,862.46 (≈ $87,600))

Visas

A temporary or permanent residence card does not by itself determine tax residence; tax residence follows the home and centre-of-interests tests.

Other taxes

VAT (IVA), social security contributions (IMSS) and treaty relief are separate. The annual tariff is republished each year in Anexo 8 of the Resolución Miscelánea Fiscal.

Checked against official sources on Change log

VAT, social security and other taxes

Questions people ask

Who qualifies for 1% to 2.5% of monthly collected income?

Individual carrying out only business, professional or temporary use of property activities, with total income of those activities in the preceding year not above MXN 3,500,000 (≈ $191,000); new taxpayers may opt in when they expect income not to exceed that limit. The regime depends on the individual's tax registration and activity, not the visa category.

≈ USD figures are approximate: daily reference rates from ExchangeRate-API, dated 12 Oct 2026, refreshed when the site is updated.

Sources (6)

Official sources

  1. Ley del Impuesto sobre la Renta, art. 1 and Título IV · Cámara de Diputados del H. Congreso de la Unión · checked 2026-10-10 · published 2024-04-01
  2. ¿Qué se entiende por residente en el extranjero? · Servicio de Administración Tributaria (SAT) · checked 2026-10-10
  3. Conoce cuáles son tus obligaciones · Servicio de Administración Tributaria (SAT) · checked 2026-10-10
  4. Anexo 8 de la Resolución Miscelánea Fiscal para 2026: tarifas del ISR, incluida la tarifa anual 2026 (arts. 97 y 152 LISR), DOF 28 de diciembre de 2025 · Servicio de Administración Tributaria · checked 2026-10-11 · published 2025-12-28
  5. Ley del Impuesto sobre la Renta, Title IV Chapter II Section IV, arts. 113-E to 113-F (Régimen Simplificado de Confianza); text last reformed DOF 1 April 2024 · Cámara de Diputados (Mexico) · checked 2026-10-10 · published 2024-04-01
  6. ISR simplificado de confianza, personas físicas: monthly return guide (December 2024) · Servicio de Administración Tributaria (SAT) · checked 2026-10-10 · published 2024-12