Mexico Expat Tax 2026: Residency, ISR Rates & RESICO

Mexico is one of the most popular destinations for remote workers and retirees from North America and Europe. Its tax system holds two surprises. Residency doesn't depend on a day count, so a home in Mexico can make you resident from the start. And freelancers can pay as little as 1% to 2.5% under the RESICO regime.

This guide covers Mexican personal tax for people moving to or living in Mexico in 2026, including residency, the updated 2026 tax rates, RESICO, investment income and temporary residency.

The key question is simple. Will your home in Mexico make you a Mexican tax resident?

What's changed: inflation since the last update passed 10%, so the 2026 tax brackets were raised by a factor of 1.1321, published on 28 December 2025. The rates themselves stay at 1.92% to 35%. Temporary residency thresholds are now generally set in UMA, the official unit of measure, which is MXN 117.31 a day in 2026.

📋 Mexico tax at a glance for 2026

When you become tax resident in Mexico

Why do so many expats get this wrong? Because they assume the 183-day rule applies. It doesn't. Under article 9 of the Federal Tax Code (CFF), you're a Mexican tax resident if you've established your home (casa habitación) in Mexico.

Image 1 — Mexico counts your home, not your days

If you also have a home in another country, you're resident in Mexico when your centre of vital interests is here. That's the case if more than 50% of your income comes from Mexican sources, or if the main centre of your professional activities is in Mexico. Temporary holiday rentals aren't treated as a home, as long as your centre of interests stays abroad.

Mexican nationals are presumed resident unless they prove otherwise. Those who move to a country where their income is taxed under a preferential regime don't lose Mexican residence.

👉 SAT: Mexican Tax Administration Service

Income tax rates for 2026

Mexico taxes residents' worldwide income at progressive rates from 1.92% to 35%. The 2026 annual brackets are:

Mexico annual income tax (ISR) rates for individuals in 2026

Source: Income Tax Law article 152, as updated in Annex 8 of the 2026 Miscellaneous Tax Resolution (DOF 28 December 2025).

Worked example

• You're employed in Mexico City, earning MXN 1.8 million (about US$100k) in 2026.

• Income tax is MXN 444,116 plus 34% of the amount above MXN 1,702,568, about MXN 477,240 in total.

• Your IMSS social security contributions add about MXN 29,000.

Your all-in bill is about MXN 506,000, or 28% of your salary. Some benefits, such as part of the year-end bonus (aguinaldo), are exempt, which can bring it down slightly.

👉 SDV Asesores (Mexico): 2026 ISR tables

Freelancing under RESICO

Mexico's Simplified Trust Regime (RESICO) is one of the lowest-tax set-ups for freelancers anywhere. Self-employed residents whose business and professional income is no more than MXN 3.5 million a year pay income tax of 1% to 2.5% on the income they actually receive, with no deductions. The rate depends on your total income:

• 1% up to MXN 300,000 a year

• 1.1% up to MXN 600,000

• 1.5% up to MXN 1 million

• 2% up to MXN 2.5 million

• 2.5% up to MXN 3.5 million

On US$100k of freelance income, that's about 2%. Social security isn't compulsory for the self-employed. You can't use RESICO if you're a shareholder in a company, and you'll need an RFC tax number, an e.firma and electronic invoices (CFDI) for your income. Above MXN 3.5 million you move to the standard rates.

👉 SDV Asesores (Mexico): RESICO guide

Crypto, investments and pensions

Mexico has no special rate for crypto. Gains on sales and swaps are treated as disposals of property, added to your other income and taxed at 1.92% to 35%. Foreign dividends, interest and capital gains are taxed the same way. Gains on shares listed on the Mexican stock exchange are taxed at a flat 10%.

Mexico exempts pension income up to 15 times the annual UMA, about MXN 642,000 in 2026. Whether a foreign pension qualifies depends on the type of pension, so get advice before relying on it. There's no inheritance or gift tax between close family, and no wealth tax.

Social security

Employees pay IMSS contributions of roughly 2.5% to 3% of salary, capped at a salary of 25 times the UMA (about MXN 2,933 a day in 2026). Employers pay considerably more, including housing (INFONAVIT) and retirement (SAR) contributions. Self-employed people can join IMSS voluntarily but don't have to.

👉 IMSS: Mexican Social Security Institute

Temporary residency for remote workers

Mexico doesn't have a dedicated digital nomad visa. Most remote workers and retirees apply for temporary residency based on financial solvency, at a Mexican consulate before they arrive. In 2026 consulates generally ask for:

• monthly income of around 300 times the daily UMA over the last six months, or

• average savings or investments of around 5,000 times the daily UMA over the last 12 months

Amounts vary between consulates, so check yours before applying. Temporary residency lasts up to four years, after which you can apply for permanent residence. Visitors can stay up to 180 days, but immigration officers often grant less.

👉 Mexperience: financial criteria for residency in Mexico (2026)

Double tax treaties

Does Mexico have double tax treaties? Yes. Mexico has 60 double taxation agreements in force, including with the US, Canada, the UK, Spain, Germany, France, the Netherlands, Italy, Japan, China, Brazil, Chile and Colombia.

👉 Praxium Consultores (Mexico): treaties in force in 2026

Who is Mexico good for?

How does Mexico compare for different kinds of mover? Ratings are relative to the 150+ countries TaxPilot covers, based on 2026 rules and the all-in cost including social security.

☑️ Who is Mexico good for? Tax ratings for expats in 2026

Filing and leaving Mexico

The Mexican tax year is the calendar year, and individuals file their annual return in April of the following year. RESICO freelancers also make monthly payments by the 17th of the following month.

If you leave, you must file a change-of-residence notice with the SAT no later than 15 days before the change. Without it, the SAT may keep treating you as resident.

Frequently asked questions

Does Mexico have a 183-day rule for tax residency?

No. You're a Mexican tax resident if you've established your home in Mexico. If you have homes in two countries, you're resident in Mexico when your centre of vital interests is here, for example when more than half your income comes from Mexico.

What is RESICO in Mexico?

A simplified regime for self-employed residents earning up to MXN 3.5 million a year. Income tax is charged at 1% to 2.5% on the income you actually receive, with no deductions.

What is the top income tax rate in Mexico in 2026?

35% on taxable income above MXN 5,107,704 a year. The 2026 brackets were raised for inflation, but the rates are unchanged.

How is crypto taxed in Mexico?

Gains on selling or swapping crypto are added to your other income and taxed at progressive rates from 1.92% to 35%. There's no special crypto rate.

How many double tax treaties does Mexico have?

Mexico has 60 double taxation agreements in force, including with the US, Canada, the UK, Spain and Germany.