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Mexico Income Tax Calculator 2026: monthly tariff step by step

Income tax in Mexico uses a progressive table: each peso you earn falls into a bracket with its own rate. This guide explains the 2026 monthly tariff of Art. 96 LISR, when the employment subsidy applies, and why your effective rate is always lower than your marginal rate.

Direct calculator

Mexico ISR calculator 2026

Verified official example

With a taxable base of $15,000 monthly:

  • Falls in the $14,644.65–$17,533.64 bracket (17.92%)
  • ISR = $1,339.14 + (($15,000 − $14,644.65) × 17.92%) = $1,402.82
  • Effective rate: 9.35% (not 17.92%)

The full 2026 monthly tariff

The tariff (Annex 8 RMF, published in the DOF on Dec 28, 2025) has 11 brackets:

| Lower limit | Upper limit | Fixed fee | Rate on surplus | |---|---|---|---| | $0.01 | $844.59 | $0.00 | 1.92% | | $844.60 | $7,168.51 | $16.22 | 6.40% | | $7,168.52 | $12,598.02 | $420.95 | 10.88% | | $12,598.03 | $14,644.64 | $1,011.68 | 16.00% | | $14,644.65 | $17,533.64 | $1,339.14 | 17.92% | | $17,533.65 | $35,362.83 | $1,856.84 | 21.36% | | $35,362.84 | $55,736.68 | $5,665.16 | 23.52% | | $55,736.69 | $106,410.50 | $10,457.09 | 30.00% | | $106,410.51 | $141,880.66 | $25,659.23 | 32.00% | | $141,880.67 | $425,641.99 | $37,009.69 | 34.00% | | $425,642.00 | And above | $133,488.54 | 35.00% |

Formula

Mexico monthly ISR

ISR = Fixed fee + (Taxable base − Lower limit) × Bracket rate

Taxable base ≠ gross salary. It is income after authorized personal deductions (medical, funeral, mortgage interest, up to 5 annual UMA combined). With no deductions, your approximate base is gross minus your IMSS quota.

Employment subsidy 2026

If your monthly income does not exceed $11,492.66, your employer applies a $535.65 subsidy as an advance payment of the tax (DOF Dec 31, 2025):

  • With a $9,000 taxable base: ISR $620.22 − $535.65 = $84.57 payable
  • At minimum-wage salaries, the subsidy leaves ISR at $0

Marginal vs effective rate

  • Marginal: your bracket's rate. It is what you pay on your next peso.
  • Effective: total ISR ÷ income. Always lower, because early pesos are taxed at low rates.

Example at $15,000: marginal 17.92%, effective 9.35%. Moving up a bracket does not "take" money from you: only the additional pesos pay the higher rate.

Frequently asked questions

The 2026 monthly tariff of Art. 96 LISR with 11 brackets from 1.92% to 35%, verified against UNAM's Consultorio Fiscal and two more sources.

The taxable base subtracts authorized personal deductions from income. With no deductions, use gross minus your IMSS quota as an approximation.

Workers with monthly income up to $11,492.66: $535.65 a month as a credit. The calculator applies it automatically.

It is a monthly estimate. The annual return uses the annual tariff with your total yearly income and accumulated deductions.

Use the Mexico net salary calculator, which combines IMSS, ISR, and the subsidy in one step.

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