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:

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.