Self-Employed Tax in Mexico

Mexico taxes self-employed individuals -- whether freelancers, consultants, or sole-trader business owners -- through the Servicio de Administracion Tributaria (SAT). Two main regimes apply to personas fisicas: the streamlined RESICO (Regimen Simplificado de Confianza), introduced 1 January 2022, and the traditional Actividades Empresariales y Profesionales regime (Regimen 612). Choosing between them turns primarily on annual gross income and the taxpayer's ability to document deductible expenses. Both regimes also require monthly IVA filings, CFDI 4.0 electronic invoicing for every sale or service, and provisional ISR payments by the 17th of each month.

What is the RESICO regime and what rates apply?

Resico is designed for individuals earning up to MXN 3,500,000 per year from business or professional activities. Rather than progressive rates on net income, it levies ISR directly on monthly gross revenue at five flat bands (SAT, "Regimen Simplificado de Confianza para personas fisicas", 2025):

Monthly payments under RESICO are definitive -- not provisional -- meaning no complex year-end recalculation if income stays within a single band. The annual declaration is generally optional for RESICO filers who are current on monthly payments, though filing it voluntarily unlocks personal deductions (medical fees, mortgage interest, tuition) that can generate a refund. Exclusions include shareholders or partners in companies (except cooperativas), those engaged in financial services, mining, petroleum, gambling, or fuel sales, and anyone already registered under another regime. Exceeding the MXN 3.5 million ceiling triggers automatic migration to the general regime, and the SAT may impose fines of MXN 1,400 to MXN 17,370 for omissions (Alegra Blog, "RESICO personas fisicas 2026", 2026). Late-payment surcharges in 2026 are 2.07% per month on unpaid amounts (Facturama, "Tablas RESICO 2026", 2026).

How does the general Actividades Empresariales y Profesionales regime work?

Taxpayers with income above MXN 3.5 million, those excluded from RESICO, or those whose deductible business expenses are large enough to make net-income taxation more favorable, fall under Regimen 612 (Heru, "Regimen de actividad empresarial: guia completa 2025", 2025). ISR is levied on net taxable income -- gross revenue minus documented, CFDI-supported business expenses -- using the annual progressive tariff published each December in Annex 8 of the Resolucion Miscelanea Fiscal. The 2025/2026 tariff (Facturama, "Tablas ISR 2025", 2025; SAT Annex 8 RMF 2026) has 11 brackets:

Tax is calculated as: (taxable income minus lower limit) multiplied by the marginal rate, plus the fixed fee. Monthly provisional payments (Pagos Provisionales) accumulate throughout the year based on cumulative net income; the annual Declaracion Anual -- due by 30 April of the following year -- reconciles provisional payments against the final liability. Deductible expenses must be supported by CFDI receipts and paid electronically; mixing personal and business transactions is a common compliance failure that draws SAT scrutiny.

What are the IVA obligations for self-employed workers?

Impuesto al Valor Agregado (IVA) is levied at 16% on most taxable supplies of goods and services (Ley del Impuesto al Valor Agregado). A reduced 8% rate applies in defined northern border-region municipalities. Exported services and certain categories -- basic food staples, medicines, medical devices -- are zero-rated. Residential rental income and most educational services are exempt. Registration is mandatory from the first taxable transaction; there is no annual-turnover threshold before registration is required, unlike many other countries. Each month, self-employed taxpayers must file a declaracion de IVA by the 17th of the following month. The net amount due is IVA charged to clients on issued CFDIs minus creditable IVA paid on supplier invoices also backed by valid CFDIs. Both RESICO and general-regime taxpayers bear the same IVA obligations; the regime choice affects only ISR, not IVA.

How does CFDI 4.0 electronic invoicing work in practice?

Comprobante Fiscal Digital por Internet version 4.0 has been the mandatory e-invoicing standard since January 2022 (full enforcement from April 2023). Every sale, service, or payment must be documented with a CFDI issued through SAT-authorized software or the SAT's own free portal. To issue CFDIs a taxpayer must hold an active RFC (tax ID), a valid e.firma (advanced electronic signature), and a Certificado de Sello Digital (CSD). Each CFDI is digitally signed, transmitted to a Proveedor Autorizado de Certificacion (PAC) for validation and timestamping, and returned with a UUID folio fiscal. Version 4.0 requires the recipient's full legal name and registered address to match SAT records exactly -- mismatches void the invoice for deduction purposes. The SAT now performs real-time cross-referencing of issued CFDIs against income declared in monthly provisional payments; gaps trigger automated enquiry notices via the buzOn tributario electronic mailbox (Heru, "Guia freelancer SAT 2025", 2025). From 2025-2026, the SAT can also suspend a taxpayer's CSD -- preventing further invoicing -- for unexplained income discrepancies or inactive tax mailboxes.

What social-security options exist for self-employed workers?

Self-employed individuals in Mexico are not automatically enrolled in the Instituto Mexicano del Seguro Social (IMSS). IMSS enrollment is mandatory only for employers with salaried workers. However, independent workers can enroll voluntarily through two modalities. Modalidad 10 covers workers in "family industries" and independents such as professionals, small merchants, and artisans; Modalidad 44 is the fully voluntary route for individuals who have never been registered as salaried employees. Enrollment is completed online at imss.gob.mx/personas-trabajadoras-independientes using the CURP, RFC, and NSS (social security number), or in person at any IMSS office. Annual contribution costs in 2025 vary by declared monthly income and age; illustrative figures from IMSS for a worker declaring roughly MXN 8,600 per month range from approximately MXN 11,100 (ages 20-29) to MXN 14,250 (ages 50-59). The IMSS provides an online calculator for exact amounts. Benefits include public healthcare and hospitalization, maternity coverage, disability and life insurance, retirement pension accumulation, and access to childcare programs. Self-employed taxpayers who also employ others must register those workers in IMSS as employers, paying combined employer-employee contributions of approximately 25%-30% of each worker's integrated daily wage.

The rules for self-employed tax in Mexico are detailed and change annually; working through them with a qualified tax professional ensures the correct regime is selected, monthly filings are accurate, and CFDI records satisfy SAT audit requirements. For a broader overview of the Mexican tax landscape see the Mexico country overview. To find a vetted practitioner familiar with SAT obligations, browse TaxPros Rated Mexico listings.