Mexico

An individual is a Mexican tax resident if they establish a home in Mexico, or, if they also have a home elsewhere, if their centre of vital interests is in Mexico — meaning more than 50% of their income comes from Mexican sources in the calendar year, or Mexico is the primary place of their professional activities. A Mexican citizen who relocates to a jurisdiction Mexico treats as a tax haven remains a Mexican tax resident for the year of the change plus the following five years, unless an information-exchange or mutual-assistance treaty is in effect with that jurisdiction.

The tax year runs 1 January to 31 December, and residents who received income during the year must generally file an annual return by 30 April of the following year, filed electronically with a registered advanced electronic signature. Residents whose only income is compensation are exempt from filing if it does not exceed MXN 400,000 for the year (subject to other conditions), and joint returns are not permitted, though a married couple may have the higher earner report all investment income.

Non-residents, including Mexican citizens who can prove tax residence in a foreign country, are taxed only on Mexican-source income. Non-resident employment income is exempt up to MXN 125,900 in a 12-month floating period, then taxed at 15% up to MXN 1,000,000 and 30% above that; other Mexican-source income such as interest, capital gains, and dividends is instead subject to separate withholding taxes that vary by income type, including a flat 10% withholding on dividends from post-2013 profits.

Most personal deductions together are capped at the lesser of 15% of the taxpayer's yearly income or five annual UMA units (MXN 213,973 for 2026); retirement-account contributions, education expenses, and medical expenses backed by a government health institution's certificate fall outside this general cap. Deductible items include medical, dental, and funeral expenses, home mortgage interest, charitable contributions (up to 7% of the prior year's taxable income), and tuition for the taxpayer, spouse, children, or parents (up to a per-student annual limit that varies by education level); Mexico has no standard deduction.

VAT-liable businesses must file a monthly information return covering their VATable activities and make definitive VAT payments by the 17th day of the following month.

Mexico exempts from VAT the sale of land, credit instruments including equity shares, residential construction, interest paid by banks, medical services, education, salaries and wages, and residential rentals, while applying a 0% rate to books, magazines, and newspapers, exports of goods and certain services, basic foodstuffs, medicines, and agricultural goods, services, and equipment.

Gains on securities sold through the Mexican Stock Exchange, or on shares of Mexican companies traded abroad in exchanges the Ministry of Finance determines are placed among the general public, are taxed at a preferential flat 10% rather than Mexico's ordinary capital gains rates. Gains from the sale of a taxpayer's principal residence are exempt if certain requirements are met, limited to the gain on approximately USD 244,560 of gross proceeds and to one such sale every three years.