Mexico · Tax on foreign income
Does Mexico tax foreign income? A guide for Americans
Short answer
Mexico taxes you on worldwide income once your main home is there; there's no simple 183-day rule. Short stays paid from the US aren't taxed in Mexico.
What you'd pay, by situation
| Retiree on US income $0 on stays without a Mexican home; at most about $14,000 a year on $60,000 of pension and interest | US Social Security is taxed only in the US. Once you live in Mexico, how it taxes a private pension isn't settled. Needs review |
|---|---|
| Remote worker paid from the US $0 on short stays; about $14,000 a year on $60,000 if you live here | Under 183 days a year with no home in Mexico, your US pay isn't taxed here; once Mexico is home, it is. |
| Working for a local employer Residents 1.92–35%; non-residents 15–30% after the first $6,800 | Pay for work done in Mexico is taxed in Mexico, and you'll need a work permit through your job offer. |
Checked against the law The US tax treaty rules and Mexico's 2026 tax rates.
Not yet verified The home test and the wage exemption, read in the tax laws.
How it works
- Tax residence: you're resident once your main home is in Mexico. With homes in both countries, it depends where your life and income centre.
- What's taxed: residents pay 1.92–35% on worldwide income, monthly by the 17th if no employer withholds. Non-residents pay only on Mexican income.
- US tax treaty: short stays of up to 183 days, paid by a non-Mexican employer, stay US-taxed. US Social Security is taxed only in the US.
- Your US return: you still file every year. Mexican tax may be credited against US tax; see a tax adviser.
- No Social Security agreement: the US and Mexico have none, so check what you'd owe on both sides.
Sources (5)
Links
- Código Fiscal de la Federación (última reforma DOF 09-04-2026)
- Ley del Impuesto sobre la Renta (última reforma DOF 01-04-2024)
- Anexo 8 de la Resolución Miscelánea Fiscal para 2026 (DOF 28-12-2025)
- US–Mexico income tax convention (1992)
- Second Additional Protocol to the US–Mexico convention (signed 26-11-2002)
Taxes in Mexico, with worked examples → The full Mexico guide →
Questions people ask
Does Mexico tax US Social Security and pensions?
US Social Security is taxed only in the US. Once you live in Mexico, how it taxes a private pension isn't settled. (Needs review)
Remote worker paid from the US in Mexico: what would I pay?
Under 183 days a year with no home in Mexico, your US pay isn't taxed here; once Mexico is home, it is. Ballpark: $0 on short stays; about $14,000 a year on $60,000 if you live here.
Working for a local employer in Mexico: what would I pay?
Pay for work done in Mexico is taxed in Mexico, and you'll need a work permit through your job offer. Ballpark: Residents 1.92–35%; non-residents 15–30% after the first $6,800.