Mexico’s Annual Tax Return for Individuals: Who Files and How
The declaración anual is due every April. Who is required to file, who can skip it, the personal deductions and their cap, and how to file on the SAT portal.
Individuals in Mexico file their annual income tax return (declaración anual) with the Tax Administration Service (SAT) during April, covering the previous calendar year, under Article 150 of the Income Tax Law. You file online with your RFC and SAT password (contraseña) or e.firma. Salaried workers with one employer and income up to MXN 400,000 usually do not have to file.
Who must file an annual return in Mexico?
Any individual with taxable income in the year must file in April of the following year, unless the income was exempt or already taxed as final. The Income Tax Law (Ley del Impuesto sobre la Renta, LISR) sets the main cases.
Salaried employees must file, under Article 98, when any of these apply:
- They also had other taxable income, such as rent, freelance fees or business income.
- They told their employer in writing that they would file their own return.
- They stopped working before December 31, or worked for two or more employers at the same time.
- Their salary came from abroad, or from an employer not required to withhold Mexican tax.
- Their salary for the year was over MXN 400,000.
Freelancers, landlords and people with business income registered with the SAT file every year, on top of their periodic tax payments during the year. Whether you are taxed in Mexico at all depends on tax residency; our guide to Mexican tax residency for foreigners explains the test.
Who can skip the annual return?
Article 150 lets individuals choose not to file if their only income was salary and interest, the total was not more than MXN 400,000, real interest was not more than MXN 100,000, and the bank withheld tax on that interest. Many people in that group still file, because a return is the only way to claim personal deductions and get a refund.
Anyone whose total income, including exempt income, passed MXN 500,000 must also report income that is exempt or was already taxed, such as travel expenses reimbursed by an employer, the exempt sale of a home and inheritances. Amounts are as written in the law as of November 2026.
Which personal deductions can you claim?
Tax residents can subtract personal deductions (deducciones personales) listed in Article 151, on top of the deductions that belong to each type of income. The conditions below are as of November 2026:
| Deduction | Main condition |
|---|---|
| Doctors, dentists, psychologists, nutritionists and hospital bills | For you, your spouse or partner, parents or children; paid by card or bank transfer to licensed professionals in Mexico |
| Funeral costs | Up to one year’s general minimum wage |
| Donations to authorized charities | Up to 7% of the previous year’s taxable income |
| Real interest on a home mortgage | Loans of up to 750,000 UDIs from a Mexican financial institution |
| Voluntary retirement contributions | Up to 10% of taxable income, capped at five annual minimum wages |
| Major medical insurance premiums | For you and the same family members |
| Compulsory school transport | Itemized on the school’s invoice |
| Local payroll tax | Where the state rate is not over 5% |
Every deduction needs an electronic invoice (CFDI) issued to your RFC. Medical bills paid in cash are not deductible, and bills paid to doctors or hospitals abroad do not count, because the law requires payment to people or institutions resident in Mexico. If you buy private cover, our guide to private health insurance in Mexico explains how those policies work.
Is there a limit on personal deductions?
Yes. The total of personal deductions cannot exceed the lower of two amounts: five times the annual value of the UMA (the Measurement and Update Unit used for fines and limits) or 15% of your total income, including exempt income. Voluntary retirement contributions sit outside that cap.
With the UMA at MXN 117.31 a day in 2026, five annual UMAs come to about MXN 214,091 for the 2026 tax year, by our calculation. Someone with total income of MXN 600,000 would hit the 15% limit first, at MXN 90,000.
How do you file the annual return?
- Get your access ready. You need your RFC and either the SAT contraseña or a valid e.firma. If you do not have an RFC yet, see our guide to getting an RFC in Mexico.
- Download your invoices. In the SAT portal, check that your employer’s payroll invoices and your deductible expenses appear under your RFC.
- Open the annual return for individuals in April. The SAT pre-fills much of it with the invoices and withholdings it already has.
- Review every pre-filled figure, add income the SAT does not see, such as foreign salary or rent paid in cash, and select your deductions.
- Choose what to do with a balance: pay it, or request a refund to your own bank account using its 18-digit CLABE.
- Submit and save the acknowledgment (acuse de recibo) and, if you owe tax, the payment line (línea de captura).
The SAT sets each year which refunds can be requested with the contraseña and which need the e.firma, depending on the amount. Larger refunds or cases outside the automatic process go through a separate refund request. Check the SAT’s annual return page each spring for the current thresholds.
The SAT’s gob.mx page links to the filing portal and taxpayer help. This page explains the general rules and is not tax advice; a Mexican accountant (contador) or the SAT decides individual cases.
What if you file late or owe money?
A late return can bring fines, inflation adjustments and surcharges on any tax due. If you owe tax and cannot pay it all at once, the SAT offers installment options under conditions it publishes each year. File even if you cannot pay in full, because not filing is a separate violation.
Bottom line
From January, ask doctors, hospitals and your insurer for invoices issued to your RFC, and pay them by card or transfer. In April, review the pre-filled return line by line before submitting, and add a CLABE in your own name if you expect a refund.
FAQ
When is the annual tax return due in Mexico?
Individuals file during April for the previous calendar year, under Article 150 of the Income Tax Law. The return for 2026 income is due in April 2027.
Do I have to file if my employer already withholds tax?
Not if your only income was salary from one employer, plus interest, and the total was MXN 400,000 or less. You must file if any of the Article 98 cases apply, such as a second employer, foreign salary or income over that amount.
Can I deduct medical bills from the United States?
No. Article 151 requires medical and hospital payments to go to people or institutions resident in Mexico, backed by a Mexican electronic invoice.
How long does a SAT refund take?
Timing varies. Refunds that fall within the SAT’s automatic process are paid to the CLABE you provide, while larger amounts or returns with unusual items go through a separate review and may bring a request for documents.