The Mexico income tax calculator estimates your 2026 ISR (Impuesto Sobre la Renta) income tax and IMSS/Afore social security contributions. Mexico uses progressive rates from 1.92% to 35%, with employers and employees each contributing to Mexico's social security system.
MXN per USD (approximately 17.5 in 2026)
How Mexico Income Tax Works
Mexico income tax (ISR) uses progressive brackets from 1.92% to 35%. The SAT (Servicio de Administración Tributaria) administers federal income taxes, with most employees having taxes withheld monthly by their employers.
ISR Brackets
Mexico has 11 ISR brackets. The first bracket starts at 1.92% on very low income. The top 35% rate applies on annual income above MXN 3,000,000 (~$171K USD). A typical professional earning MXN 500,000/year faces a marginal rate of 30%.
IMSS Social Security
For salaried employees, IMSS contributions cover healthcare (ISSSTE or IMSS), disability insurance, and life insurance. Employee contributions are relatively low (~2.5% of salary for most components) compared to employer contributions (~22%). Freelancers and self-employed workers in the Régimen Simplificado pay a flat rate with reduced social benefits.
Afore Retirement Savings
Mexico's private pension system requires employees to contribute 1.125% of salary to an individual Afore account. Employers contribute 5.15%, making the total Afore contribution approximately 6.275% of salary. These funds belong to the employee individually, unlike state pension systems.
Frequently Asked Questions
Is this Mexico income tax calculator free?
Yes, completely free with no signup required.
What are Mexico's income tax rates for 2026?
Mexico ISR uses progressive rates from 1.92% to 35%. The top 35% rate applies to annual income above MXN 3,000,000. Most middle-class earners fall in the 21–30% bracket range.
What is IMSS in Mexico?
IMSS (Instituto Mexicano del Seguro Social) is Mexico's social security system. Employees pay approximately 1.65–2.5% of salary for IMSS contributions, covering healthcare, disability, and life insurance. Employers pay much higher rates (~22% of salary).
What is Afore in Mexico?
Afore (Administradora de Fondos para el Retiro) manages Mexico's individual retirement accounts. Employees contribute about 1.125% of salary, employers contribute 5.15%, and the government adds a small 'cuota social' for lower earners.
Does Mexico have a tax-free threshold?
Yes. Annual employment income up to approximately MXN 125,900 is subject to the lowest rate bands. Mexico also provides an employment subsidy (subsidio para el empleo) for lower-income employees, which can reduce or eliminate income tax for those earning under approximately MXN 10,000/month.