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MX Tax 2021

Mexico Tax Tables 2021 - Tax Rates and Thresholds in Mexico

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This page contains the tax table information used for the calculation of tax and payroll deductions in Mexico in 2021. These tax tables are used for the tax and payroll calculators published on iCalculator™ MX, these tools are provided for your free use on our website. If you would like additional tax table information added to the tax calculators for Mexico or would like to add to or suggest amendments to the information herein then please contact us.

Mexico Personal Income Tax Tables in 2021

The Income tax rates and personal allowances in Mexico are updated annually with new tax tables published for Resident and Non-resident taxpayers. The Tax tables below include the tax rates, thresholds and allowances included in the Mexico Tax Calculator 2021.

Mexico Residents Income Tax Tables in 2021
Personal Income Tax Rates and Thresholds (Annual)
Tax RateTaxable Income Threshold
1.92%Income from ₱ 0.000.00to ₱ 7,735.00
6.4%Income from ₱ 7,735.01 to ₱ 65,651.07
10.88%Income from ₱ 65,651.08 to ₱ 115,375.90
16%Income from ₱ 115,375.91 to ₱ 134,119.41
17.92%Income from ₱ 134,119.42 to ₱ 160,577.65
21.36%Income from ₱ 160,577.66 to ₱ 323,862.00
23.52%Income from ₱ 323,862.01 to ₱ 510,451.00
30%Income from ₱ 510,451.01 to ₱ 974,535.03
32%Income from ₱ 974,535.04 to ₱ 1,299,380.04
34%Income from ₱ 1,299,380.05 to ₱ 3,898,140.12
35%Income from ₱ 3,898,140.13 and above
Mexico Non-residents Income Tax Tables in 2021
Personal Income Tax Rates and Thresholds (Annual)
Tax RateTaxable Income Threshold
0%Income from ₱ 0.000.00to ₱ 125,900.00
15%Income from ₱ 125,900.01 to ₱ 1,000,000.00
30%Income from ₱ 1,000,000.01 and above

Mexico Social Security Rates in 2021

In Mexico, both employers and employees make mandatory contributions to the social security system. These contributions are directed towards various programs that provide support and benefits to the workforce and their families. Below the Social Security Rates and thresholds tables for 2021 is an overview of the key elements these contributions fund:

In 2021 the Base de Cotización Integrada (BLS) in Mexico (see below for an overview of BLS), which is a crucial element in calculating contributions and benefits for the Mexican Social Security system (IMSS), has a maximum limit of ₱ 0.00. This amount is equivalent to 25 times the Unidad de Medida y Actualización (UMA) value of ₱ 32,693.40. The BLS is an accumulation of both fixed and variable perceptions of an employee's salary and is used to determine the contributions towards social security and other related benefits.

Mexico Social Security in 2021: Rates for Employers and Employees
Social security categoryEmployeeEmployerTotal
Work Risk Insurance0%0.54355%0.54355%
Disease and Maternity Insurance0%20.4%20.4%
Disease and Maternity Insurance Surplus Fee0.4%1.1%1.5%
Disablement and Life Insurance0.625%1.75%2.375%
Retirement: Old Age0%2%2%
Retirement: Advanced Age Severance1.125%1.125%2.25%
Nursery and Social Benefits0%1%1%
INFONAVIT (National Worker's Housing Fund Institute)0%5%5%
Mexico Social Security in 2021: Earnings Thresholds for Employers and Employees
Social security categoryEmployeeEmployer
Min.Max.Min.Max.
Work Risk Insurancen/an/an/an/a
Disease and Maternity Insurancen/an/an/a₱ 32,693.40
Disease and Maternity Insurance Surplus Fee₱ 98,080.20n/a₱ 98,080.20₱ 817,335.00
Disablement and Life Insurancen/a₱ 98,080.20n/a₱ 817,335.00
Retirement: Old Age₱ 98,080.20n/an/a₱ 817,335.00
Retirement: Advanced Age Severancen/an/an/a₱ 817,335.00
Nursery and Social Benefitsn/an/an/a₱ 817,335.00
INFONAVIT (National Worker's Housing Fund Institute)n/an/an/a₱ 817,335.00

1. Retirement, Old Age, and Pension Benefits

Contributions in this category are allocated towards retirement and pension benefits. They ensure a source of income for individuals upon retirement or in cases of inability to work due to old age.

2. Healthcare and Maternity Insurance

This portion of the social security contribution provides access to medical care and services, encompassing maternity care which supports pregnant women before, during, and after childbirth.

3. Disability and Life Insurance

These contributions fund benefits for employees who become disabled and unable to work. It also includes life insurance benefits for the families in the event of the worker's death.

4. Work Risk Insurance

Work risk insurance is designed to cover accidents or illnesses related to the workplace. It provides both medical care and financial support in these scenarios.

5. Childcare and Social Benefits

Part of the social security contributions is allocated towards childcare services for working mothers and other social welfare programs that assist workers and their families in various life aspects.

6. Housing Fund (INFONAVIT)

Contributions to the Housing Fund (INFONAVIT) provide housing credits and related services to workers, enabling them to purchase, build, repair, or improve their homes.

These contributions are a cornerstone of the Mexican labor system, providing a comprehensive safety net for workers and contributing significantly to the country's overall social welfare.

What is BLS?

The Base Listed Salary (Salario Base de Cotización, SBC) calculation in Mexico is a method used to determine the salary amount on which social security contributions are based. It is a crucial element in the Mexican social security system and is used to calculate contributions and benefits for employees under the Mexican Social Security Institute (IMSS).

The calculation of the SBC involves summing up various components of an employee's remuneration. These components typically include fixed elements such as the regular salary, as well as variable elements like bonuses, commissions, and other benefits. Certain allowances and fringe benefits may also be considered in this calculation.

The SBC has a maximum limit set by the IMSS, ensuring that contributions are capped at a certain level. This limit is adjusted periodically to reflect changes in economic conditions. The SBC calculation is essential for employers to comply with their legal and fiscal obligations regarding social security contributions in Mexico. It also ensures that employees are adequately covered in terms of social security benefits, which are based on their contributions calculated from the SBC.

Note:

iCalculator™ MX uses the annual salary entered as the BLS for the employee when completing annual tax calculations for employees in Mexico.

Mexico VAT Rates in 2021

VAT rates for Mexico are reviewed annually, you can use the VAT Calculator to calculate VAT due in Mexico or use the Reverse VAT Calculator to calculate the net cost of goods/services after deducting VAT.

Mexico VAT Rates
VAT RateVAT Description
0%Zero Rated
16%Standard Rate

Historic Tax Tables supported for Mexico

The following tax tables are supported by iCalculator™ MX as part of the suite of free tax tools we provide for Mexico.