Freelancer Tax in Mexico: IVA, ISR & CFDI Invoicing (2026)

Mexico requires every freelancer to register with SAT (Servicio de Administración Tributaria) and obtain an RFC (Registro Federal de Contribuyentes) — your tax ID. Without an RFC you cannot legally issue invoices (CFDIs).

Register online at sat.gob.mx or in person at a SAT office. Choose your tax regime:

• Régimen de Actividades Empresariales y Profesionales — standard
• RESICO (Régimen Simplificado de Confianza) — for revenues under $3.5M MXN/year, flat rate 1%–2.5% on gross income (no expense deductions)
• Régimen de Plataformas Digitales — for those earning via Uber, Airbnb, etc.

Most freelancers should consider RESICO first — drastically simpler with low effective rates.

Introduced in 2022, RESICO (Régimen Simplificado de Confianza) lets eligible freelancers pay a flat ISR rate based on revenue brackets:

• Up to $25,000/month → 1%
• $25,001–$50,000 → 1.1%
• $50,001–$83,333 → 1.5%
• $83,334–$208,333 → 2%
• $208,334+ → 2.5%

Eligibility:

• Annual revenue under $3.5M MXN
• No expense deductions (rate applied directly to gross)
• Must issue CFDIs and accept all client CFDIs
• Cannot opt out and back in lightly — once out, locked out for 5 years

IVA (16%) is paid separately on top of ISR.

RESICO works best for freelancers with low expenses. If you have significant business costs (equipment, travel, software), the standard regime with deductions may save more.

Mexico charges 16% IVA on most services and goods. The northern border zone has a reduced 8% IVA rate to compete with US prices.

Exemptions / 0% rate:

• Exports of services
• Books, newspapers, and magazines
• Foreign tourist services
• Basic foods (most), medicines, and some others (varies)

IVA is calculated monthly and remitted to SAT by the 17th of the following month. Input IVA on business expenses is deductible (under standard regime; NOT under RESICO).

Mexico requires CFDI (Comprobante Fiscal Digital por Internet) — fully electronic, government-validated invoices. Paper invoices are not legally valid.

Every CFDI must:

• Be issued through a SAT-certified PAC (Proveedor Autorizado de Certificación)
• Include your RFC, client's RFC, regime code, CFDI use code, payment method
• Be digitally signed and timestamped by SAT in real-time
• Have a unique UUID and QR code
• Be delivered in XML + PDF format

Clients can verify any CFDI on SAT's website using the UUID. The Mexican tax system is heavily anti-fraud — CFDI is a key control.

For freelancers, you'll typically use accounting software with CFDI support, or SAT's free "Factura Fácil" portal for limited use.

All freelancers (RESICO or standard) file monthly:

• Provisional ISR payment — by the 17th of the following month
• IVA return — by the 17th of the following month
• DIOT (Declaración Informativa de Operaciones con Terceros) — quarterly, listing all suppliers and their RFCs

Annual filing:

• April 30 — Declaración Anual for the prior calendar year

All filings are online via SAT's "Mi Portal" using your e.firma (digital signature).

Under the standard regime (NOT RESICO), freelancers can deduct ordinary business expenses:

• Office rent and utilities — proportional to business use
• Equipment and software — depreciated according to SAT's percentage tables
• Vehicle — operating costs (limited deduction for personal-use vehicles)
• Professional services — accountant fees, legal
• Phone and internet — business-use portion
• Training and books — related to your activity
• Health and life insurance premiums (limited)

All expenses must be supported by a CFDI from the supplier — no CFDI, no deduction. Keep all CFDIs (yours and suppliers') for 5 years.