What are the ISR rates for Mexican residents on capital gains?

Mexican residents pay ISR on the net capital gain using the same progressive table applied to ordinary income — rates range from 1.92% on gains up to MXN 7,735 to 35% on gains above MXN 3,498,600 (2024 annual table). Residents may also deduct the original cost basis indexed for inflation, notary fees, and improvements with proper invoices (facturas). The gain is reported on the annual ISR return (Declaración Anual).

How is ISR calculated for non-residents selling property in Mexico?

Non-residents (extranjeros sin establecimiento permanente) have two withholding options administered by the Mexican notary at closing: (1) 25% of gross sale proceeds, or (2) 35% of the net gain (proceeds minus the indexed cost basis). The buyer or notary withholds the tax. The seller can request option 2 by presenting documentation of the original cost; otherwise option 1 applies by default. The lower figure is generally preferable.

Is there an exemption for selling your primary home in Mexico?

Yes. Mexican tax residents may exclude up to MXN 700,000 UDIs (approximately MXN 5.6–6.2 million, indexed to inflation) of capital gain per transaction when selling their principal residence (casa habitación), provided: the property was the seller's primary home, the seller has not claimed the exemption in the last three years, and the transaction is conducted through a notary. The exemption does not apply to non-residents.

Can I deduct improvements and selling costs from the gain?

Mexican residents can deduct the inflation-adjusted original cost (using the INPC index), documented improvement costs (invoiced and paid through the formal economy), notary and registration fees at purchase, and real estate commission (documented with a factura). Non-residents using the 35%-on-net-gain method may deduct the original cost indexed for inflation. Non-residents using the 25%-on-gross method cannot deduct any costs — the tax is on the total proceeds.

When must Mexican capital gains tax be paid?

For real estate sales, the notary (notario público) withholds and remits ISR at closing, issuing a payment receipt (constancia de retención). Residents must also declare the gain on their annual ISR return (April 30 of the following year) and may receive credit for the withholding. For other assets (shares, business interests), ISR is generally paid via provisional monthly payments within the 17th of the following month.

Does this calculator include UDI inflation indexing?

This calculator uses a simplified model based on the nominal cost basis you enter. The official calculation uses INPC (Índice Nacional de Precios al Consumidor) indexing to adjust the acquisition cost for inflation between the purchase and sale dates, which can significantly reduce the taxable gain for long-held properties. For an exact figure, consult a Mexican notario or contador who has access to the current INPC tables.

Mexico Capital Gains Tax Calculator

Name: Mexico Capital Gains Tax Calculator
Availability: InStock
Author: Nham Vu

Enter your sale price, cost basis, and residency status to compute Mexican ISR on capital gains from real estate and asset sales.

Sale Details

Residency Status

Mexican Resident Non-Resident

Sale Proceeds (total received)

MXN

Total amount received from the asset sale in Mexican pesos.

Cost Basis (original price + improvements)

MXN

Original purchase price plus documented improvements and acquisition costs (nominal, not INPC-indexed).

Note: This calculator uses a nominal cost basis. The official ISR calculation applies INPC inflation indexing, which typically reduces the taxable gain for properties held many years. Consult a notario for an exact figure.

Enter sale details and click Calculate

ISR Summary

ISR Owed

MXN 0

Effective Rate

Net After Tax

MXN 0

ISR Progressive Brackets (LISR Art. 152)

Income Band (MXN)	Rate	Taxable Slice	Tax

Calculation Breakdown

Estimate only — uses nominal cost basis without INPC indexing. Does not include casa habitación exemption, monthly deductions, or state-level taxes. Consult a Mexican notario or contador for advice specific to your transaction.

Summary