Mexico VAT Calculator 2026
16% standard, with reduced rate of 8% on specified categories.
Figures last reviewed
Mexico VAT at a glance
- Standard VAT rate
- 16% — ranked 22 of 36 covered here
- Reduced rate
- 8% — applies to specified categories only
- Compared with the average
- -0.99 pts — average across the 36 countries covered is 16.99%
- Rates verified
- 17 August 2026 — checked against the issuing tax authority
How VAT works in Mexico
IVA 16% (standard), 8% (border region)
Calculating Mexico VAT
Start from the price excluding tax
VAT is charged on the net price. At 16%, a net MXN 100 becomes MXN 116.00 once VAT of MXN 16.00 is added.
To work backwards, divide — never subtract
Removing VAT from a gross figure means dividing by 1.1600, not subtracting 16%. Subtracting the percentage from the gross amount understates the net price, and the error grows with the rate.
Check which rate actually applies
Mexico applies a reduced rate of 8% to specified categories. IVA 16% (standard), 8% (border region) Using the standard rate on a reduced-rate supply overstates the tax.
Worked example at 16%
Adding and removing VAT at 16%
| Component | Adding to a net price | Removing from a gross price |
|---|---|---|
| Starting amount | MXN 100.00 | MXN 1,000.00 |
| VAT at 16% | (MXN 16.00) | (MXN 137.93) |
| Result | MXN 116.00 | MXN 862.07 |
So a net price of MXN 100.00 in Mexico costs MXN 116.00 once VAT is added. Working the other way, a gross price of MXN 1,000.00 contains MXN 137.93 of VAT, leaving MXN 862.07 net.
Computed from the same 16% rate the calculator applies, so this table and the calculator cannot disagree.
Countries with a similar rate
Mexico VAT questions
What is the VAT rate in Mexico?
The standard rate is 16%. Reduced rate of 8% apply to specified categories. That places Mexico 22 of 36 of the countries covered here, 0.99 points below the 16.99% average.
How do I remove VAT from a price in Mexico?
Divide the gross amount by 1.1600. At 16%, a gross MXN 1,000 works back to MXN 862.07 net with MXN 137.93 of VAT. Subtracting 16% from the gross figure is the common mistake and gives the wrong answer.
Which countries have higher and lower rates than Mexico?
Of the countries covered here, Finland has the highest standard rate at 25.5% and United Arab Emirates the lowest at 5%. Mexico sits at 16%.