SAT tax table in Mexico 2023: how to calculate how much I have to pay according to income and marital status?

(CNN Spanish) — In April of this year, the tax season arrives in Mexico, the amount of which will be defined, naturally, by the amount of income that, in this case, an individual has had in 2022. Although not all Mexicans qualify to pay taxes , the law establishes, among others, a series of rules to calculate your payments for your income from different items.

This year’s tax payment is calculated according to your tax regime, according to the Tax Administration Service (SAT), which in 2021 published the tables corresponding to Income Tax (IRS) for this year’s declaration.

In December 2022, the SAT published in the Official Gazette of the Federation an update of these taxes and in general of the tax regime in Mexico, but these changes will only be reflected in 2024. We will talk about it later.

This is a guide for the payment of taxes for the year 2022, which must be paid in Mexico as of April 1, 2023.

Who must file their annual tax return?

If you are a natural person, that is, you earn income through any of these activities, you must submit your statement to the SAT:

Wages and salaries

• From a single pattern and you stopped receiving it before December 31.
• If you also obtained income other than wages.
• If you worked for two or more employers simultaneously.
• If the wages come from abroad or from persons not required to withhold.
• If you also obtained income from compensation or retirement.
• If your total annual salary income exceeds 400,000 Mexican pesos

To see why other items must be paid taxes in Mexico, follow this link.

“Not everyone submits an annual return or is required to,” Virginia Ríos Hernández, a member of the Tax Investigation Technical Commission of the Department, told CNN. College of Public Accountants of Mexico. “If they are salaried and their cumulative income did not exceed 400,000 Mexican pesos in the year 2022, they do not have the obligation to present the annual declaration if they only had that income.”

But if a person obtained extra income, in addition to their salary, such as fees for additional work or for leases or for the sale of properties, they must submit the declaration, Ríos Hernández added.

And even if a person’s income is low, they must still file a tax return, even if it is zero, although this does not necessarily mean paying an economic amount.

“Starting in 2022, it is mandatory for all those of legal age to register in the Federal Taxpayer Registry (RFC). However, some registered without obligations because they do not have economic activities,” added the expert.

How to calculate how much I have to pay in taxes?

The Tax Administration Service has established certain amounts with which the tax base for the year to be paid is calculated, which it establishes according to your income. The document that was published in 2021 contains the rates applicable to provisional payments, withholdings, and tax calculation.

Thus, those who in 2022 had income between 0 and 7,735 Mexican pesos must pay 0 pesos in taxes. The amounts of the fixed installment of taxes to be paid increase as the amount of money increases, according to the Rate table for the calculation of the 2022 tax.

The regulations allow personal deductions to be made in the annual declaration. These are “expenses that as a taxpayer you have the right to reduce from your cumulative income” in the annual income statement, according to the SAT.

Some of these deductions they are health such as fees for medical services, hospital expenses and medicines, analysis and medical examinations, rehabilitation devices, prostheses; payment of education services, according to the SAT limits; as well as funeral expenses, interest on mortgage loans, etc.

The tax can vary according to the income and the type of taxpayer —whether individuals or legal entities— between 1.0% up to 35% each month according to the income received, according to the SAT.

The amounts in this table correspond to the maximum annual income to calculate the tax payment.

Are there deductions based on a person’s marital status?

Not really. In Mexico, unlike the US, for example, a marital status tax deduction does not apply.

But it does apply, for example, a division of shares if income was received from assets of a marital partnership.

“For example, if a couple that is under a conjugal partnership has a property and rents it, then the income is divided between the two,” said Ríos Hernández. So, each one produces his own return and each one pays his tax. It’s cheaper for him.”

How will the 2023 taxes that will be paid in 2024 be modified?

At the end of 2022, the SAT published the new Fiscal Miscellaneous for 2023, which means that the new tax values ​​and rates are applied to this year’s income and payments will be made by 2024.

“In the declaration that will be presented in 2024 there is already a modification due to inflation. The law indicates that when inflation exceeds 10% accumulated since the last update of the rate, it will be updated again,” says the expert.

The last time the Fiscal Miscellaneous was modified was in 2021 and from the end of that year to December 2022 (that year it was 7.82%), the accumulated inflation of the two years exceeded 10%, for this reason the fee.

“With inflation it was updated and so people in 2024, if in 2023 they earn the same as in 2022, they will pay less taxes,” said Ríos Hernández.