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🇲🇽 Mexico Net Salary Calculator 2026
Mexican payroll has two deductions: ISR (income tax) and IMSS (social security). ISR is progressive across 11 brackets, starting at 1.92% and rising to 35% above $5,107,703.93 a year, applied straight to gross salary since IMSS quotas aren't deductible from the tax base. IMSS itself is really five small contributions, Enfermedad y Maternidad, Prestaciones en Dinero, Gastos Médicos, Invalidez y Vida, and Cesantía y Vejez, adding up to about 2.775% of salary once you're above a small exempt floor, capped once your salary passes 25 UMAs (around $1,069,866 a year in 2026). Lower earners also get a flat monthly subsidio al empleo credit, which isn't included here. At MXN 350,000 annual gross (about €17,000), a Mexican employee takes home around MXN 285,500 after ISR and IMSS. At MXN 700,000, take-home is approximately MXN 537,000.
Mexico Income Tax Brackets
| Income band | Rate |
|---|---|
| $0 – $10,135 | 1.92% |
| $10,135 – $86,022 | 6.40% |
| $86,022 – $151,176 | 10.88% |
| $151,176 – $175,736 | 16.00% |
| $175,736 – $210,404 | 17.92% |
| $210,404 – $424,354 | 21.36% |
| $424,354 – $668,840 | 23.52% |
| $668,840 – $1,276,926 | 30.00% |
| $1,276,926 – $1,702,568 | 32.00% |
| $1,702,568 – $5,107,704 | 34.00% |
| $5,107,704 and above | 35.00% |
Take-home pay examples
| Gross / year | Net / year | Net / month |
|---|---|---|
| $150,000 | $134,338 | $11,195 |
| $350,000 | $288,700 | $24,058 |
| $700,000 | $546,256 | $45,521 |
| $1,200,000 | $885,991 | $73,833 |
Employee figures only, standard deductions applied. Pension contributions, benefits in kind, and other personal factors are not included.
Data & assumptions
- Tax year
- 2026
- Last updated
- 2026-07-17
- Employment assumption
- Full-time employee, single filer
Figures are estimates based on standard deductions and do not account for pension contributions, benefits in kind, or individual circumstances. See our methodology for how these numbers are calculated.
Frequently Asked Questions
What is the UMA and why does it matter?
The UMA (Unidad de Medida y Actualización) is a reference value the government updates each year, used to set thresholds across Mexican law, including the IMSS exemption floor and contribution ceiling. For 2026 it's $3,566.22 a month. The IMSS cap of 25 UMAs works out to roughly $1,069,866 a year.
Is the subsidio al empleo included?
No. It's a flat $535.65/month tax credit for workers earning up to $11,492.66 a month, aimed at low earners. Since it only affects people near the bottom of the pay scale, leaving it out slightly overstates tax for lower-income examples but makes no difference for typical professional salaries.
Are IMSS contributions deductible from income tax?
No. Unlike some countries where social security reduces your taxable base, Mexican ISR is withheld on your full gross salary; IMSS comes out separately afterward.
What is a good salary in Mexico?
Mexico City (CDMX) is by far the highest-paying market; Monterrey and Guadalajara are the main secondary cities. A single person in Mexico City typically needs MXN 20,000–40,000 net per month to live comfortably, which corresponds to roughly MXN 280,000–560,000 gross. The national median gross salary is around MXN 90,000–120,000 per year. Mexico's tech sector has grown dramatically, particularly since nearshoring trends brought US companies closer: software engineers at major tech companies in CDMX commonly earn MXN 300,000–800,000 gross, with senior roles at US companies sometimes reaching MXN 1,000,000 or more.
What is the aguinaldo (Christmas bonus) and how is it taxed?
The aguinaldo is a legally required annual Christmas bonus of at least 15 working days of salary, paid before 20 December. Most private employers pay 30 days or more. The first 30 days of minimum wage (roughly MXN 13,600 per year in 2026) is exempt from ISR; anything above that threshold is taxed at normal progressive rates. Unlike Austria's 13th/14th month salary (which has its own preferential 6% rate), Mexico's aguinaldo is taxed progressively, which reduces its after-tax value for higher earners. The ISR on the aguinaldo is typically withheld by the employer in December and reconciled in the annual declaration.
How does Mexican take-home compare to other Latin American countries?
At comparable income levels, Mexico's effective rate sits in the mid-range for Latin America. Chile's AFP pension (around 10%) plus progressive income tax produces broadly similar results to Mexico's IMSS plus ISR structure. Colombia's pension (4%), health (4%), and solidarity contributions alongside its progressive income tax produce somewhat lower effective rates at mid-incomes. Brazil's INSS is heavier than Mexico's IMSS, so Mexico typically gives better take-home than Brazil at equivalent gross. For US-adjacent remote work, Mexico benefits from time zone alignment with the US and an increasingly large dollar-denominated contract market.