How ISR and IMSS are withheld from a Mexican salary
- ISR: the employer applies the monthly tariff in article 96 of the income tax law each payday and settles the year with the annual tariff in December (the ajuste anual).
- Subsidio para el empleo: for monthly taxable pay of MX$11,492.66 or less, ISR is reduced by up to MX$535.65 a month.
- IMSS: worker quotas are charged on the salario base de cotización (SBC), the daily wage including the value of legal benefits.
Social security quotas are not deductible for ISR, so both are worked out from the same gross.
Worked example: 20,000 pesos a month
| Item | Per year |
|---|---|
| 12 monthly salaries | MX$240,000 |
| Aguinaldo (15 days) | MX$10,000 |
| of which tax free | MX$3,519.30 |
| ISR on the annual tariff | −MX$29,988.19 |
| Employment subsidy | MX$0 |
| IMSS worker quotas | −MX$6,571.68 |
| Net pay | MX$213,440.13 |
Monthly pay is above the subsidy limit, so no subsidy applies. A regular month's withholding on the monthly tariff is MX$2,383.65. The SBC is MX$699.54 a day, the daily wage of MX$666.67 multiplied by the integration factor of 1.0493.
ISR monthly tariff for 2026
Anexo 8 of the 2026 Resolución Miscelánea Fiscal updated the tariffs by 13.21%, the first update since 2023. Tax = fixed amount + rate × income above the lower limit.
| Monthly taxable income | Fixed amount | Rate on excess |
|---|---|---|
| MX$0.01 to MX$844.59 | MX$0 | 1.92% |
| MX$844.60 to MX$7,168.51 | MX$16.22 | 6.40% |
| MX$7,168.52 to MX$12,598.02 | MX$420.95 | 10.88% |
| MX$12,598.03 to MX$14,644.64 | MX$1,011.68 | 16.00% |
| MX$14,644.65 to MX$17,533.64 | MX$1,339.14 | 17.92% |
| MX$17,533.65 to MX$35,362.83 | MX$1,856.84 | 21.36% |
| MX$35,362.84 to MX$55,736.68 | MX$5,665.16 | 23.52% |
| MX$55,736.69 to MX$106,410.50 | MX$10,457.09 | 30.00% |
| MX$106,410.51 to MX$141,880.66 | MX$25,659.23 | 32.00% |
| MX$141,880.67 to MX$425,641.99 | MX$37,009.69 | 34.00% |
| MX$425,642 and above | MX$133,488.54 | 35.00% |
Subsidio para el empleo in 2026
Since May 2024 the subsidy is a fixed share of the monthly UMA, not a sliding table. The decree for 2026 sets it at 15.02% (15.59% in January only), worth MX$535.65 a month with the UMA of MX$3,566.22, for workers earning up to MX$11,492.66 a month. It can only reduce ISR to zero; any unused part is not paid in cash.
At MX$8,000 a month the subsidy cuts yearly ISR from MX$6,189.26 to MX$52.28, and net pay averages MX$8,126.84 a month.
IMSS worker quotas on the SBC
| Branch | Base | Worker rate |
|---|---|---|
| Sickness and maternity, cash benefits | SBC | 0.25% |
| Sickness and maternity, pensioners medical costs | SBC | 0.375% |
| Sickness and maternity, surplus | SBC above 3 UMA (MX$351.93 a day) | 0.4% |
| Disability and life (invalidez y vida) | SBC | 0.625% |
| Old age and severance (cesantía y vejez) | SBC | 1.125% |
Together that is 2.375% of the SBC, plus 0.40% on the part above three UMA. The SBC is capped at 25 UMA, MX$2,932.75 a day. The employer pays much larger quotas, and its cesantía y vejez share keeps rising each year until 2030 while the worker's stays at 1.125%. INFONAVIT's 5% is also employer only.
How the aguinaldo is taxed
Every employee is owed at least 15 days of salary as aguinaldo before 20 December. Up to 30 UMA, MX$3,519.30 in 2026, it is exempt from ISR; only the excess is taxable. On a MX$20,000 salary the aguinaldo is MX$10,000, so MX$6,480.70 is added to taxable income.
Untick the box to see the twelve salaries alone: yearly net pay of MX$204,824.41, against MX$213,440.13 with the aguinaldo. Employers often withhold on the aguinaldo with the optional method in article 174 of the regulations, which can give a different December payslip but the same result after the annual adjustment.
Net salary in Mexico at six pay levels
Monthly base salaries with the aguinaldo; deductions and net pay are the yearly figures divided by 12.
| Base per month | ISR | IMSS | Net per month | Total deductions |
|---|---|---|---|---|
| MX$8,000 | MX$4.36 | MX$202.14 | MX$8,126.84 | 2.5% |
| MX$11,000 | MX$320.13 | MX$281.93 | MX$10,856.27 | 5.3% |
| MX$15,000 | MX$1,462.26 | MX$400.03 | MX$13,762.71 | 11.9% |
| MX$20,000 | MX$2,499.02 | MX$547.64 | MX$17,786.68 | 14.6% |
| MX$40,000 | MX$7,078.84 | MX$1,138.10 | MX$33,449.72 | 19.7% |
| MX$80,000 | MX$18,648.10 | MX$2,319.02 | MX$62,366.22 | 25.2% |
Many employers pay every quincena (twice a month): the default salary nets about MX$8,534.35 per quincena before the aguinaldo. To start from a target net, use the Net to Gross Calculator; for an overview of other countries, the Gross to Net Calculator by Country.
What is included and the assumptions
- Included: base salary, the minimum aguinaldo and the minimum vacation premium (through the SBC factor).
- Not included: savings funds, food vouchers, overtime, PTU profit sharing, or extra benefits that raise the SBC. Employers pay the worker quotas for staff on the minimum wage; this calculator does not apply that rule.
- One employer for the full year, the 2026 UMA applied to all months, and ISR worked on the annual tariff with the subsidy credited month by month.
Sources: SAT Anexo 8 of the RMF 2026 (DOF), the subsidio para el empleo decree for 2026, INEGI's UMA values, and the Ley del Seguro Social as administered by IMSS. Rates for 2026.
Frequently Asked Questions
How much is 20,000 pesos gross after tax in Mexico?
About MX$17,068.70 a month in 2026 without the aguinaldo: ISR MX$2,383.66 and IMSS MX$547.64 a month on average.
Who gets the subsidio para el empleo in 2026?
Workers whose monthly taxable salary is MX$11,492.66 or less. It reduces ISR by up to MX$535.65 a month.
How much of the aguinaldo is tax free?
Up to 30 UMA, MX$3,519.30 in 2026. Any amount above that is taxed with your salary.
What percentage does IMSS take from my salary?
2.375% of the SBC, plus 0.40% of the SBC above three UMA. That is roughly 2.4% to 3% of pay for most workers.
What is the SBC?
The salario base de cotización is the daily salary used for IMSS, including the daily value of aguinaldo, vacation premium and other regular benefits, capped at 25 UMA.
Is the ISR on my payslip the same as the annual tax?
Usually close. Monthly withholding uses the monthly tariff; in December the employer compares it with the annual tariff and adjusts any difference.