Mexico’s 2026 ISR tax brackets: all four Annex 8 tables, explained for employees

Which ISR bracket are you in?

Gross monthly salary

MXN

Marginal rate

17.92 %

Bracket starts at	MX$14,644.65
Next bracket starts at	MX$17,533.65
ISR withheld per month	MX$1,403
Effective ISR rate	9.4 %

Detailed ISR calculator →

Annual table (article 152)

Most people moving to Mexico negotiate a yearly figure, so this is the table to start with. It is not what your employer uses each month, but it is the one that settles the year: it applies to total taxable income for the calendar year, minus the personal deductions the law allows, in the annual tax return.

Worked example: an annual taxable income of MX$1,200,000 sits in the row starting at MX$668,840.15. The excess over that limit is taxed at 30 % and the fixed amount is added, for an annual ISR of MX$284,833. What was withheld through payroll during the year is then subtracted to see whether a refund or a balance is due.

Monthly table used by payroll (article 96)

This is the table behind every Mexican payslip. Each upper limit is the next lower limit minus one centavo, so no peso falls between two brackets. The «fixed amount» (cuota fija) is not an extra charge: it is the tax already produced by all the lower brackets, precomputed so payroll does not have to walk the table from the first row.

Reading a row: MX$80,000 a month

Find the highest lower limit that does not exceed the salary: MX$55,736.69. Subtract it: MX$80,000.00 − MX$55,736.69 leaves MX$24,263.31. Apply the row’s rate of 30 % to get MX$7,278.99, then add the fixed amount of MX$10,457.09. Monthly ISR: MX$17,736.08. At this level there is no employment subsidy, which only reaches salaries up to MX$11,492.66 a month, so that figure is what gets withheld.

What these brackets mean for a professional salary

The rate printed on a row is marginal: it tells you how much tax the next peso will carry. The effective rate, ISR divided by gross salary, is always lower. The table below runs typical professional and expatriate pay levels through the 2026 monthly tariff.

Two practical consequences. When comparing an offer in Mexico with one at home, compare effective rates, not top rates: the top bracket only bites far up the scale. And when negotiating a raise, the marginal rate is the honest guide to what you keep. Remember that ISR is not the whole deduction: the employee share of IMSS, the social security institute, comes on top, up to a contribution cap. The net salary calculator adds both, and net to gross works backwards from the take-home figure you want.

Year-end bonus (aguinaldo), vacation premium and profit sharing (PTU) are partly tax-exempt; only the taxable part is added to the month in which they are paid, which can push that month into a higher bracket. Many employers instead use the optional method of article 174 of the Income Tax Regulations, which spreads the effect and often withholds less.

15-day table (quincena)

Mexican payroll is very often fortnightly: one payment around the 15th and another at month end, each called a quincena. The figures are proportional to the monthly table, roughly the monthly amounts times 15 divided by 30.4, with the same rates.

A MX$40,000 quincena lands in the 30 % row and carries MX$8,909.22 of ISR. Two quincenas rarely add up to exactly the monthly figure, because a calendar month is not 30.4 days long, so payroll often trues up on the second payment. The simulator shows the gap for your salary.

Withholding per quincena versus per month

Gross monthly salary

MXN

ISR per quincena (15-day tariff)

MX$990.66

Two quincenas	MX$1,981.32
Monthly tariff	MX$1,956.45
Monthly difference	MX$24.87

The 15-day tariff is 15 ÷ 30.4 of the monthly one; the employer trues up at month end or in the annual calculation.

Detailed ISR calculator →

7-day table (weekly payroll)

Weekly pay is common in manufacturing, construction and retail. A weekly payment of MX$9,000 falls in the 23.52 % row, with MX$1,506.07 of ISR.

Mistakes to avoid

• Applying the bracket rate to the whole salary. On MX$80,000 that would give MX$24,000 instead of MX$17,736.
• Mixing periods. A 15-day base needs the 15-day table. Running a quincena through the monthly table understates the tax, and the reverse overstates it.
• Assuming a foreign tax treaty changes withholding. Treaties decide where income is taxed and how double taxation is relieved; a Mexican-resident employee is still withheld with these tables, and any foreign credit is sorted out in the relevant returns.
• Forgetting exempt income. The exempt part of aguinaldo, vacation premium or PTU is not run through the table.

For the full withholding on a salary you type in, with subsidy and minimum-wage rules applied, use the ISR calculator.