Mexico · Taxes
Mexico taxes for US citizens
Source-checked25 sources, 24 officialHow we checkIn brief
Mexico taxes you on worldwide income once your main home is there; there's no simple 183-day rule. Short stays paid from the US aren't taxed in Mexico.
In short: what you'd pay in Mexico
Retiree on US income
US Social Security is taxed only in the US. Once you live in Mexico, how it taxes a private pension isn't settled. Needs review
Ballpark: $0 on stays without a Mexican home; at most about $14,000 a year on $60,000 of pension and interest
Remote worker paid from the US
Under 183 days a year with no home in Mexico, your US pay isn't taxed here; once Mexico is home, it is.
Ballpark: $0 on short stays; about $14,000 a year on $60,000 if you live here
Working for a local employer
Pay for work done in Mexico is taxed in Mexico, and you'll need a work permit through your job offer.
Ballpark: Residents 1.92–35%; non-residents 15–30% after the first $6,800
Checked against the lawThe US tax treaty rules and Mexico's 2026 tax rates.
Not yet verifiedThe home test and the wage exemption, read in the tax laws.
Sources (5)
Links
- Código Fiscal de la Federación (última reforma DOF 09-04-2026)
- Ley del Impuesto sobre la Renta (última reforma DOF 01-04-2024)
- Anexo 8 de la Resolución Miscelánea Fiscal para 2026 (DOF 28-12-2025)
- US–Mexico income tax convention (1992)
- Second Additional Protocol to the US–Mexico convention (signed 26-11-2002)
How Mexican tax works
- Tax residence: you're resident once your main home is in Mexico. With homes in both countries, it depends where your life and income centre.
- What's taxed: residents pay 1.92–35% on worldwide income, monthly by the 17th if no employer withholds. Non-residents pay only on Mexican income.
- US tax treaty: short stays of up to 183 days, paid by a non-Mexican employer, stay US-taxed. US Social Security is taxed only in the US.
- Your US return: you still file every year. Mexican tax may be credited against US tax; see a tax adviser.
- No Social Security agreement: the US and Mexico have none, so check what you'd owe on both sides.
Sources (6)
Links
- Código Fiscal de la Federación (última reforma DOF 09-04-2026)
- Ley del Impuesto sobre la Renta (última reforma DOF 01-04-2024)
- US–Mexico income tax convention (1992)
- SSA: international Social Security agreements
- IRS: US citizens and resident aliens abroad
- IRS: foreign tax credit, how to figure the credit
Nine worked examples, 2026
The retiree has $30,000 of Social Security, a $40,000 private pension and $20,000 of interest. The 90- and 182-day rows assume no home in Mexico; the 365-day rows assume Mexico is home.
| Who | Days in Mexico | Mexico income tax | US income tax, before credits |
|---|---|---|---|
| Remote employee, $60,000 | 90 | $0 | $5,020 |
| Remote employee, $60,000 | 182 | $0 | $5,020 |
| Remote employee, $60,000 | 365 | $13,963 | $5,020 |
| Remote employee, $150,000 | 90 | $0 | $24,734 |
| Remote employee, $150,000 | 182 | $0 | $24,734 |
| Remote employee, $150,000 | 365 | $43,762 | $24,734 |
| Retiree, $90,000 | 90 | $0 | $8,348 |
| Retiree, $90,000 | 182 | $0 | $8,348 |
| Retiree, $90,000 | 365 | Not settled | $8,348 |
Don't add the two columns: credits and the foreign earned income exclusion can cut the US part.
Needs reviewThe retiree's Mexican tax when living there all year.
Sources (16)
Legal basis and exact figures
- Home test: Código Fiscal art 9 I a): resident if you set up a home (casa habitación) in Mexico; with homes in two countries, if your centre of vital interests (e.g. over 50% of income from Mexico) is there. No day-count rule.
- $0 rows: LISR art 154 exempts pay from a foreign employer with no related Mexican establishment for stays under 183 days in any 12 months; treaty art 15(2) gives the same. They don't hold if you set up a home in Mexico or the work is tied to a Mexican establishment.
- 365-day employees: 2026 tariff (LISR art 152, Anexo 8 RMF 2026), no deductions: $13,962.85 on $60,000; $43,762.32 on $150,000. Non-resident working all year (art 154): $8,929.33 and $35,929.33. Monthly payments by the 17th (art 96).
- Retiree, 90 and 182 days: a US pension, Social Security and US interest have no Mexican source for a non-resident (LISR art 155).
- Retiree, 365 days: not computed. Social Security is US-only (treaty art 19(1)(b), kept by the saving clause); the private pension is taxable in Mexico (art 19(1)(a)) but whether the LISR art 93 IV exemption (up to 642,272.25 pesos a year) covers foreign pensions is unsettled; the interest calculation is open. Illustrative ceiling only: $60,000 taxed in full = $13,962.85.
- US side: US figures are federal income tax before the exclusion and credits (treaty saving clause, art 1(4)); employee FICA is extra ($4,590 on $60,000; $11,475 on $150,000). No totals; Mexico's social security (IMSS) isn't researched.
- Rates: pesos at Banxico FIX 18.6188 (12 Nov 2026). Top rate 35% above 5,107,703.93 pesos a year.
Links
- Código Fiscal de la Federación (última reforma DOF 09-04-2026)
- Ley del Impuesto sobre la Renta (última reforma DOF 01-04-2024)
- Anexo 8 de la Resolución Miscelánea Fiscal para 2026 (DOF 28-12-2025)
- INEGI: Unidad de Medida y Actualización 2026 (comunicado 1/26)
- Banco de México: tipo de cambio FIX (serie histórica diaria)
- US–Mexico income tax convention (1992)
- Second Additional Protocol to the US–Mexico convention (signed 26-11-2002)
- SSA: international Social Security agreements
- IRS: 2026 inflation adjustments
- IRS: US citizens and resident aliens abroad
- IRS: foreign earned income exclusion
- IRS: foreign tax credit, how to figure the credit
- IRS: FICA tax rates (Topic 751)
- IRS: US income tax treaties A to Z
- IRS: enhanced senior deduction
- IRS Publication 915: Social Security benefits
Other Mexico guides
Every rule with its legal source.
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