How payroll deductions work in Mexico
If you are on a Mexican payroll, two things are taken out of your gross salary: income tax (ISR), which goes to the tax authority (SAT), and your share of social security (IMSS), the worker’s contribution. One feature surprises newcomers: income tax is charged on your gross taxable pay, and IMSS is not deducted before the tax is figured. On top of that, lower salaries receive the employment subsidy (subsidio para el empleo), a fixed credit that reduces the tax and, when it is larger than the tax, is handed to the worker in cash.
This calculator turns a gross monthly salary into net take-home pay using the figures in force for 2026: the monthly ISR table from article 96 of the Income Tax Law, the 2026 UMA reference unit, and the subsidy set by the December 2025 decree. Everything runs in your browser — your salary never leaves your device.
How to use the calculator
- Enter your gross monthly salary in Mexican pesos (the figure in your contract, before deductions).
- The dark card shows your estimated monthly take-home pay.
- The smaller cards break out the ISR withheld, the IMSS worker contributions and the employment subsidy, plus the total percentage deducted.
- Open the step-by-step section to see how the number is built.
The method, step by step
- IMSS worker contributions: 2.375% of the contribution base salary (disability and life, retirement-age severance, and pensioner medical costs), plus an extra 0.40% charged only on the part of the salary above 3 UMA per month ($10,698.66 with the 2026 UMA).
- ISR: the monthly article 96 table is applied to taxable income. The formula is ISR equals the fixed fee plus the rate on the amount above the lower limit of your row.
- Employment subsidy: if monthly taxable income is up to $11,492.66, you are entitled to $535.65, which is subtracted from the ISR. If the subsidy exceeds the tax, no ISR is withheld and your employer pays you the difference.
The 2026 monthly ISR table (Annex 8, official gazette, 28 Dec 2025):
| 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% |
Worked example
A gross salary of $30,000 per month:
- IMSS base rate: 30,000 × 2.375% = $712.50
- IMSS extra rate: (30,000 − 10,698.66) × 0.40% = $77.21
- Total IMSS: $789.71
- ISR (row 6): (30,000 − 17,533.65) × 21.36% + 1,856.84 = $4,519.65
- Subsidy: none, because income is above $11,492.66
- Take-home pay: $24,690.64, a total deduction of 17.7%
Common salaries at a glance
| Gross salary | IMSS | ISR withheld | Subsidy | Net salary | Deduction |
|---|---|---|---|---|---|
| $10,000 | $237.50 | $193.37 | $535.65 | $9,569.13 | 4.31% |
| $15,000 | $373.46 | $1,402.82 | $0.00 | $13,223.73 | 11.84% |
| $20,000 | $512.21 | $2,383.65 | $0.00 | $17,104.14 | 14.48% |
| $30,000 | $789.71 | $4,519.65 | $0.00 | $24,690.64 | 17.7% |
| $50,000 | $1,344.71 | $9,107.82 | $0.00 | $39,547.47 | 20.91% |
At $10,000 the net pay already reflects the subsidy: the table ISR of $729.02 is reduced by the $535.65 credit, so only $193.37 is actually withheld.
Frequently asked questions
Why doesn’t my payslip match the calculator exactly?
Because your employer computes IMSS on your integrated contribution base salary, which adds the year-end bonus, vacation premium and other benefits, and many companies also deduct housing credit (Infonavit), consumer credit (Fonacot) or private insurance. This tool estimates only the ISR and the IMSS worker contribution on the amount you type in.
Who qualifies for the employment subsidy?
Anyone with monthly taxable income up to $11,492.66. For 2026 the subsidy is $535.65 (15.02% of the monthly UMA). If your ISR is smaller than that, no tax is withheld and the employer pays you the difference; above the income cap there is no subsidy.
What is the UMA, and why does it matter?
The UMA (Unidad de Medida y Actualización) is an inflation-linked reference unit used instead of the minimum wage for tax thresholds. In 2026 it is $117.31 per day and $3,566.22 per month. It sets both the 3-UMA line for the extra IMSS charge and the year-end bonus exemption (30 UMA, or $3,519.30).
Will this calculator work next year?
The ISR table, the UMA and the subsidy are revised every year. Review the tool annually: once the SAT publishes the table for the next period, we will update the figures.
This tool provides an informational estimate based on the rules in force in 2026; the exact withholding is determined by the SAT and your employer from your contribution base salary. Verify the amounts and consult a professional before acting, and review it annually, because tax rules change every year.