VAT calculator for Mexico
Add or remove VAT for Mexico in MXN — preset with the current rates (16% & 8%).
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VAT rates in Mexico (2026)
The standard rate of 16% applies to most goods and services. Reduced rates (8%) apply only to specific goods and services defined by law. Locally, the tax is called Impuesto al Valor Agregado (IVA).
Good to know
- The 8% IVA rate applies in the northern and southern border regions under the border stimulus programme; exports and some food and medicines are 0%.
How it’s calculated
VAT is charged as a percentage of the net (pre-tax) price. To add it, multiply the net amount by the rate; to find the net amount inside a tax-inclusive price, divide the gross amount by 1 plus the rate.
A common mistake is to remove VAT by subtracting the rate from the gross price (e.g. 119 − 19% = 96.39). That is wrong — the correct net amount is 119 ÷ 1.19 = 100.
Gross = Net × (1 + rate ÷ 100)VAT = Net × rate ÷ 100Net = Gross ÷ (1 + rate ÷ 100)
Frequently asked questions
How do I add VAT to a price in Mexico?
Multiply the net price by 1.16. For example, MX$100.00 plus 16% VAT is MX$100.00 × 1.16 = MX$116.00.
How do I remove VAT from a gross price in Mexico?
Divide the gross price by 1.16: MX$116.00 ÷ 1.16 = MX$100.00. The VAT included is MX$16.00.
What VAT rates apply in Mexico?
Mexico uses a standard VAT rate of 16%. Reduced rates of 8% apply to specific goods and services.
Are these VAT rates for Mexico up to date?
The rates were last reviewed in October 2026. Tax rates can change, so confirm with the tax authority before relying on them for filings.
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Results are estimates for general information only and are not tax, legal or financial advice.