The Tax Administration Service (SAT), the highest tax authority responsible for collecting taxes in Mexico, published on December 27 of the previous year the Income Tax (ISR) rates that will be in effect for 2023.
This update, made every time inflation exceeds 10% since the last month the calculation was made, allows adjustments to determine this tax that applies to individuals by modifying the lower and upper limits of the calculation tables.
The last time this update was made was in December 2020, which came into effect on January 1, 2021. From November 2020 to November 2022, the accumulated inflation in Mexico was 15.74%, corresponding to the income tax withholding table update by exceeding the 10% index stipulated in the law.
This reduction of ISR by updating applies to all individuals with salaried contracts, business activity, fees, lessors, or who receive interest income. It does not apply to those under the Simplified Trust Regime (Resico) since these taxpayers already have a different lower rate.
Rate 2023 for calculating monthly interim income tax payments
| line | Lower limit | Upper limit | Fixed fee | % to be applied to the excess of the lower limit |
|---|---|---|---|---|
| $ | $ | $ | $ | |
| I. | 0.01 | 746.04 | 0.00 | 1.92 |
| II. | 746.05 | 6,332.5 | 14.32 | 6.40 |
| III | 6,332.06 | 11,128.01 | 371.83 | 10.88 |
| IV. | 11,128.02 | 12,935.82 | 893.63 | 16.00 |
| V. | 12,935.83 | 15,487.71 | 1,182.88 | 17.92 |
| VI. | 15,487.72 | 31,236.49 | 1,640.18 | 21.36 |
| VII. | 31,236.50 | 49,233.00 | 5,004.12 | 23.52 |
| VIII. | 49,233.01 | 93,993.90 | 9,236.89 | 30.00 |
| IX. | 93,993.91 | 125,325.20 | 22,665.17 | 32.00 |
| X. | 125,325.21 | 375,975.61 | 32,691.18 | 34.00 |
| XI. | 375,975.62 | En adelante | 117,912.31 | 35.00 |