Mexican Tax Calculator
Calculate Mexican ISR income tax and social security from gross salary. Enter values for instant results with step-by-step formulas.
Formula
ISR = Fixed Quota + (Gross - Bracket Lower Limit) x Marginal Rate - Employment Subsidy
Mexican ISR uses progressive brackets with fixed quotas. For each bracket, you pay the fixed quota plus the marginal rate on income exceeding the bracket lower limit. Low-income workers receive an employment subsidy that reduces the ISR owed. IMSS employee contributions add approximately 2.375% on salary up to 25 UMA.
Worked Examples
Example 1: Mid-Level Employee Monthly Tax
Problem: Calculate the net salary for an employee earning $35,000 MXN monthly gross with IMSS deductions.
Solution: Monthly gross: $35,000 MXN\nISR bracket: $31,236.50 - $49,233.00 (23.52% marginal rate)\nExcess over lower limit: $35,000 - $31,236.50 = $3,763.50\nMarginal tax: $3,763.50 x 23.52% = $885.19\nISR before subsidy: $5,004.12 + $885.19 = $5,889.31\nSubsidy: $0 (income above subsidy threshold)\nISR: $5,889.31\nIMSS: $35,000 x 2.375% = $831.25\nTotal deductions: $6,720.56\nNet salary: $28,279.44
Result: Net Monthly: $28,279.44 MXN | Effective Rate: 19.20%
Example 2: Entry-Level Worker with Subsidy
Problem: Calculate net salary for a worker earning $8,500 MXN monthly gross.
Solution: Monthly gross: $8,500 MXN\nISR bracket: $6,332.06 - $11,128.01 (10.88% marginal rate)\nExcess: $8,500 - $6,332.06 = $2,167.94\nMarginal tax: $2,167.94 x 10.88% = $235.87\nISR before subsidy: $371.83 + $235.87 = $607.70\nSubsidy: $0 (income above subsidy range)\nISR: $607.70\nIMSS: $8,500 x 2.375% = $201.88\nNet: $7,690.43
Result: Net Monthly: $7,690.43 MXN | Effective Rate: 9.52%
Frequently Asked Questions
What is the UMA and how does it affect tax calculations?
The UMA (Unidad de Medida y Actualizacion) is a reference unit used in Mexico for calculating government obligations, fines, social security contributions, and other fiscal matters. It replaced the minimum wage as the reference unit in 2016 to decouple social benefits from wage policy. The daily UMA value is updated annually by INEGI based on the Consumer Price Index. For 2024, the daily UMA is approximately 108.57 MXN (monthly UMA approximately 3,300.53 MXN). IMSS contribution bases are capped at 25 times the daily UMA, which means employees earning above this threshold have their social security contributions limited.
What deductions can reduce my ISR tax burden in Mexico?
Mexican taxpayers can claim several personal deductions to reduce their annual ISR. These include medical, dental, and hospital expenses for yourself and dependents; funeral expenses; mortgage interest (limited to 750,000 UDI); charitable donations to authorized institutions; private school tuition (up to certain limits per education level); and contributions to personal retirement accounts (up to 10% of income or 5 UMA annually). Professional fees for nutrition and psychology are also deductible. Total personal deductions are capped at 15% of annual income or 5 annual UMA, whichever is less. These deductions are claimed in the annual tax return filed in April.
How often do Mexican tax brackets and rates change?
Mexican ISR tax brackets are updated annually to account for inflation, as mandated by the ISR law. The SAT publishes updated monthly and annual bracket tables in the Diario Oficial de la Federacion, typically in December for the following year. While the marginal rates themselves (1.92% through 35%) have remained relatively stable for several years, the peso amounts defining each bracket are adjusted upward based on inflation. The employment subsidy table and UMA values are also updated annually. Major structural changes to the tax system require legislative approval through the Miscellaneous Fiscal Resolution (Resolucion Miscelanea Fiscal) or amendments to the ISR law itself.
Can I use Mexican Tax Calculator on a mobile device?
Yes. All calculators on NovaCalculator are fully responsive and work on smartphones, tablets, and desktops. The layout adapts automatically to your screen size.
Is Mexican Tax Calculator free to use?
Yes, completely free with no sign-up required. All calculators on NovaCalculator are free to use without registration, subscription, or payment.
Is my data stored or sent to a server?
No. All calculations run entirely in your browser using JavaScript. No data you enter is ever transmitted to any server or stored anywhere. Your inputs remain completely private.