Salary and tax
How Is Net Salary Calculated in Mexico?
Net salary in Mexico is gross pay minus ISR income tax (after the subsidio al empleo, if eligible) and the employee share of IMSS social security. In 2026 a gross monthly salary of $20,000 MXN leaves about $17,104.14 MXN after $2,383.65 of ISR and $512.21 of IMSS.
Last updated: October 20, 2026
Step 1: ISR with the 2026 monthly tariff
Find the row where your monthly taxable income falls. ISR = (income − lower limit) × rate on the excess + fixed fee.
SAT 2026 monthly ISR tariff (Article 96)
| Lower limit | Upper limit | Fixed fee | Rate on excess |
|---|---|---|---|
| $0.01 | $844.59 | $0.00 | 1.92% |
| $844.60 | $7,168.51 | $16.22 | 6.40% |
| $7,168.52 | $12,598.02 | $420.95 | 10.88% |
| $12,598.03 | $14,644.64 | $1,011.68 | 16.00% |
| $14,644.65 | $17,533.64 | $1,339.14 | 17.92% |
| $17,533.65 | $35,362.83 | $1,856.84 | 21.36% |
| $35,362.84 | $55,736.68 | $5,665.16 | 23.52% |
| $55,736.69 | $106,410.50 | $10,457.09 | 30.00% |
| $106,410.51 | $141,880.66 | $25,659.23 | 32.00% |
| $141,880.67 | $425,641.99 | $37,009.69 | 34.00% |
| $425,642.00 | and above | $133,488.54 | 35.00% |
For $20,000: (20,000 − 17,533.64) × 21.36% + 1,856.84 = $2,383.65.
Step 2: subsidio al empleo
From February 2026 the employment subsidy is 15.02% of the monthly UMA, about $535.65, for workers earning up to $11,492.66 a month. It is subtracted from ISR (ISR cannot go below zero). At $20,000 it does not apply.
Step 3: IMSS employee contributions
- Cesantía y vejez (old age): 1.125%
- Invalidez y vida (disability and life): 0.625%
- Gastos médicos de pensionados: 0.375%
- Prestaciones en dinero: 0.25%
- Enfermedad y maternidad: 0.40% of the part of salary above 3 UMA ($10,698.66 a month)
For $20,000: 2.375% × 20,000 + 0.40% × 9,301.34 = $512.21.
Net salary at common pay levels
2026 monthly estimate (MXN)
| Gross monthly | ISR | IMSS | Net monthly |
|---|---|---|---|
| $10,000.00 | $193.37 | $237.50 | $9,569.13 |
| $15,000.00 | $1,402.82 | $373.46 | $13,223.72 |
| $20,000.00 | $2,383.65 | $512.21 | $17,104.14 |
| $30,000.00 | $4,519.65 | $789.71 | $24,690.64 |
| $50,000.00 | $9,107.82 | $1,344.71 | $39,547.47 |
| $80,000.00 | $17,736.09 | $2,177.21 | $60,086.71 |
What this estimate leaves out
Employers calculate IMSS on the integrated daily salary (SBC), which includes aguinaldo and vacation premium. For a first-year worker with the legal minimum benefits the integration factor is about 1.0493, so IMSS is slightly higher than shown. Aguinaldo (at least 15 days of salary, exempt from ISR up to 30 UMA), INFONAVIT loan payments, and state payroll taxes (paid by the employer) are also not included.
Key takeaways
- Net salary = gross − ISR (after subsidio) − IMSS employee share.
- ISR uses the 2026 SAT monthly tariff: fixed fee plus a marginal rate on the excess.
- The 2026 subsidio is about $535.65 for salaries up to $11,492.66 a month.
- IMSS takes about 2.4% of salary plus 0.40% above 3 UMA.
- $20,000 MXN gross is about $17,104.14 net in 2026.
Frequently asked questions
Is ISR calculated on monthly or annual income?
Employers withhold monthly with the monthly tariff, then the year is reconciled with the annual tariff, which can produce a small refund or balance due.
Does the minimum wage pay ISR?
Workers earning only the general minimum wage are exempt from ISR withholding.