Income tax on rent, worked example, in Mexico
Taxation Researcher | February 07, 2019
| Non-resident couple´s joint monthly rental income1 | US$1,500 | US$6,000 | US$12,000 | |
| Annual Rental Income | 18,000 | 72,000 | 144,000 | |
| = Taxable Income | 18,000 | 72,000 | 144,000 | |
| Income Tax Rates4 | ||||
| Flat rate | 25% | 4,500 | 18,000 | 36,000 |
| Annual Income Tax Due | 4,500 | 18,000 | 36,000 | |
| Tax Due as % of Gross Income | 25.00% | 25.00% | 25.00% | |
Thanks to: |
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Notes
1 The property is jointly owned by husband and wife, but then taxed separately (50% upon each partner).
2 Exchange rate used: 1.00 US$ = 17.00 MXN
3 Gross rental income earned by nonresident individuals are taxed at a flat rate of 25%. No deductions are allowed.