Mexico: Worked Example of Tax on Rent
In Depth
- Overview
- Price History
- Rental Yields
- Taxes and Costs
- Tax on Rent (Example)
- Buying Guide
- Landlord and Tenant
- Inheritance
- Living There
- Useful Links
- Country Statistics
Directory
Global Statistics
Regional Statistics
- Sq. M. Prices
- Price/GDP per Cap
- Buy/Sell Costs
- Rental Income Tax
- Capital Gains Tax
- Landlord & Tenant Law
- GDP Per Capita
- GDP/Cap Growth 1 yr
- GDP/Cap Growth 5 yrs
- Economic Freedom
- Ec. Freedom 5 yrs
- Competitiveness
- Property Rights Index
- Currency +/- Value
- Taxes on Residents
Tax Example: Rent
| Non-resident couple's joint monthly rental income1 | US$1,500 | US$6,000 | US$12,000 | |
| Annual Rental Income | 18,000 | 72,000 | 144,000 | |
| Less Standard Costs2 | (6,300) | (25,200) | (50,400) | |
| Less Real Estate Tax3 | (360) | (1,440) | (2,880) | |
| = Taxable Income | US$11,340 | US$45,360 | US$90,720 | |
| Income Tax Rates4 | ||||
| Up to MXN5,925.84 | 3% | 3% | 3% | 3% |
| MXN5,925.85 – MXN50,524.92 | 10% | 10% | 10% | 10% |
| MXN50,524.93 – MXN88,793.04 | 17% | 17% | 17% | 17% |
| MXN88,793.05 – MXN103,218 | 25% | – | 25% | 25% |
| Over MXN103,218 | 28% | – | 28% | 28% |
| Annual Income Tax Due | US$604.46 | US$3,475.67 | US$16,217.15 | |
| Tax Due as % of Gross Income | 3.36% | 4.83% | 11.26% | |
Thanks to: |
||||
DISCLAIMER:The information contained above is marketing material only and is not written tax advice directed at the particular facts and circumstances of any person and should not be relied upon. We encourage you to discuss your particular situation with us or an independent tax advisor. This information was last updated on August 1, 2007.
Notes
1 The property is jointly owned by husband and wife, but then taxed separately (50% upon each partner). Exchange rate used: 1 USD = 10.999933 MXN.
2 For tax purposes, individuals renting a property have the option to deduct either the standard costs (35% of gross income) or actually incurred income-generating expenses. The deduction of standard costs was utilized in this computation.
3 Residential property tax is calculated as a percentage of the assessed value of the property. The residential (single-unit) rate for Toronto is 0.8528434% for 2007.
4 Estimated values. If the deduction of standard costs (also known as “blind deduction”) was taken, no other costs are deductible except for real estate tax.
5 Income tax liability is reduced by subsidies.
RSS
Your Comments
Be the first to comment!