16% standard, 8% in the northern and southern border zones. Staple food and medicines are zero-rated.
MX$16.55 of it is tax, leaving MX$103.45 before tax.
IVA rates in Mexico for 2026
Mexico charges IVA at a standard rate of 16%, with a reduced rate of 8%. Amounts on this page are in Mexican Peso (MXN).
16% standard, 8% in the northern and southern border zones. Staple food and medicines are zero-rated.
Rate
Type
Gross = net ×
Tax share of the gross price
16%
standard
1.16
13.79%
8%
reduced
1.08
7.41%
How much IVA is inside a price
If a price already includes IVA, divide by 1 plus the rate: at 8%, MX$2,000 ÷ 1.08 = MX$1,851.85 before tax, so MX$148.15 is tax.
Rate
Tax in MX$2,000
Net of MX$2,000
Tax in MX$20,000
Net of MX$20,000
16%
MX$275.86
MX$1,724.14
MX$2,758.62
MX$17,241.38
8%
MX$148.15
MX$1,851.85
MX$1,481.48
MX$18,518.52
Adding IVA to a net amount
For a quote or invoice, multiply the net amount by 1 plus the rate: at 8%, MX$20,000 × 1.08 = MX$21,600.
Rate
Tax on MX$2,000
MX$2,000 plus tax
Tax on MX$20,000
MX$20,000 plus tax
16%
MX$320
MX$2,320
MX$3,200
MX$23,200
8%
MX$160
MX$2,160
MX$1,600
MX$21,600
How Mexico's standard rate compares
Mexico's 16% standard rate compares with a median of 18%: 20 of the 39 countries in this calculator's table charge more, 18 less. Its lowest rate above zero is 8%: 22 countries go lower, and 15 have no rate that low.
This is a reference calculation using common tax assumptions and is not a substitute for professional advice. We accept no liability for decisions made from it — see the terms of use for details.