Americas

Mexico

Corporate rate
30%
Top personal rate
35%
VAT / GST rate
16%
One-sentence summary Mexico's corporate tax position: 30. Personal income tax: residents up to 35%; non-residents up to 30%. VAT/consumption tax: 16.

Corporate Tax Rate

Mexico's headline corporate income tax (CIT) rate is 30.

Personal Tax Rate

The headline personal income tax (PIT) rate is residents up to 35%; non-residents up to 30%.

VAT / GST Rate

The standard VAT/GST (or equivalent consumption tax) rate is 16. Registration thresholds, zero-rated and exempt categories, and reduced rates vary by jurisdiction - see the source link below for the full detail on this jurisdiction.

Residency

Under Article 9 of the Federal Tax Code (Codigo Fiscal de la Federacion), Mexico does not use a simple day-count rule. An individual is a Mexican tax resident once they establish a permanent home (casa habitacion) in Mexico; if they also maintain a home elsewhere, residency turns on their "center of vital interests" - generally deemed to be in Mexico if more than 50% of total income is Mexican-sourced, or if the person's main professional activities are based in Mexico. Mexican citizens who relocate to a jurisdiction Mexico treats as a preferential tax regime (REFIPRE) remain Mexican tax residents for the year of departure plus the following five years, unless that jurisdiction has an information-exchange agreement with Mexico. Anyone leaving Mexican tax residency must file a formal change-of-residency notice (aviso de cambio de residencia fiscal) at least 15 days before departure, or the SAT continues to treat them as resident.

CFC Rules (REFIPRES)

Rather than a conventional CFC regime, Mexico uses the Preferential Tax Regime framework (Regimenes Fiscales Preferentes, Articles 176-178 of the Income Tax Law). Foreign income is subject to REFIPRE treatment where it is either not taxed abroad, or taxed at a rate below 75% of what the same income would have borne under Mexican tax law - assessed case-by-case by comparing the foreign effective tax burden to the hypothetical Mexican liability. Where REFIPRE applies to a non-transparent entity, the Mexican resident must include the entity's income in their own taxable base in the year it is generated, proportional to their participation, regardless of distribution.

Thin Capitalization

Interest paid by a Mexican resident to a non-Mexican related party is non-deductible to the extent the debt exceeds a 3:1 debt-to-equity ratio, calculated using average balances under Mexican GAAP or IFRS (with an alternative computation available using capital-contribution and net-tax-profit accounts, which if elected must be used for at least five consecutive years). Certain debt financing productive infrastructure in strategic sectors, or held by regulated financial-sector entities, is excluded from the computation. Separately, net interest exceeding 30% of adjusted taxable profit is also non-deductible under a BEPS Action 4-style rule, and interest paid to a related party in a REFIPRE jurisdiction can face a 40% withholding rate.

Treaty Network

Mexico maintains double tax treaties with 60 countries. Mexico has no treaty with Egypt, Iran, Lebanon, Malaysia, Morocco, Nicaragua, Oman, Pakistan, Slovenia, Thailand, or Venezuela; a treaty signed with Guatemala in 2015 remained pending ratification and not yet in force as of the most recent verification. Mexico ratified the OECD's Multilateral Instrument (MLI), effective July 1, 2023, which modifies most of its treaties - notable exceptions include the United States (which did not sign the MLI) and Germany (whose treaty changes are instead implemented via a bilateral protocol).

Source: PwC Worldwide Tax Summaries - Mexico (secondary compilation, cited per jurisdiction). Rates last reviewed by PwC: 06 August 2026. Page last verified: August 07, 2026. General information only - confirm current rates and any specific position with a licensed advisor in this jurisdiction before relying on this page.