Mexico VAT / Sales Tax

Detailed vat / sales tax rates and rules for Mexico in 2026.

VAT / Sales TaxMXN

Mexico levies a 16% value-added tax (IVA) on most goods and services. Essential items such as basic food, medicines, and educational services are zero-rated. A reduced 8% IVA rate applies in the Northern Border Zone and the Southern Border Free Zone as a stimulus measure. Exports are zero-rated. Exempt activities include residential rental, medical services, education, and certain financial services. Businesses must charge IVA on taxable transactions and file monthly returns. The digital economy is also subject to IVA, with foreign digital service providers required to register and collect tax.

Standard Rate

16%

Registration Threshold

No threshold — all businesses performing taxable activities must register for IVA

Reduced Rates

0% — Food and non-alcoholic beverages (basic staples)0% — Medicines and medical services0% — Books, newspapers, and magazines0% — Agricultural and fishing activities8% — Goods and services in the Northern Border Zone (reduced rate)

How Mexico VAT / Sales Tax compares

Mexico’s standard VAT / sales tax rate of 16% is the 84th highest of 203 countries TaxAtlas tracks, above the global average of 13.7% and North America’s regional average of 10.4%.