As the fiscal year draws to a close, it’s the perfect time to review your deductible expenses and make sure your finances are in order. Understanding which expenses qualify as personal tax deductions in Mexico can help you reduce your taxable income and stay compliant with Mexican tax regulations.
What Are Personal Deductions?
Personal deductions are specific expenses that you, as a taxpayer, are allowed to report to reduce your taxable income. They help lower your overall tax burden in Mexico, provided they meet the requirements of the Income Tax Law (Ley del Impuesto sobre la Renta, LISR) and are supported by official tax receipts (CFDI) and electronic payments.
Healthcare Services
All medical, dental, psychological, and nutritional services are deductible, but only if provided by professionals with officially registered degrees from authorized educational institutions.
The following expenses are also deductible:
- Hospital fees and medicines included on hospital invoices (pharmacy receipts alone are not deductible).
- Nursing services, laboratory analyses, clinical tests, and the purchase or rental of medical devices for recovery or rehabilitation, including prosthetics.
- Prescription optical lenses, up to a limit of MXN 2,500 per person per year.
- Medical insurance premiums, whether complementary to or independent of public social security coverage.
These deductions apply to expenses incurred for you, your spouse or partner, parents, grandparents, children, and grandchildren.
Important: All payments must be made electronically—cash payments are not deductible.
Educational Services
Tuition fees paid to private schools with official recognition are deductible from preschool to high school or equivalent levels. The annual deduction limits are as follows:
- Preschool: MXN 14,200
- Primary school: MXN 12,900
- Secondary school: MXN 19,900
- Technical or vocational school: MXN 17,100
- High school or equivalent: MXN 24,500
Enrollment or re-enrollment fees are not deductible, and school transportation is only deductible if it is mandatory.
Payments must be made via bank transfer, check, or card—cash payments are not accepted for deduction purposes.
Other Deductible Expenses
Funeral expenses:
Deductible for your spouse or partner, parents, grandparents, children, and grandchildren, up to the equivalent of one annual UMA (approximately MXN 108,000 for 2025).
Real interest on mortgage loans:
Deductible for your primary residence, provided the loan is granted by a financial institution, INFONAVIT, or FOVISSSTE, and does not exceed 750,000 investment units (UDIs).
Donations:
Deductible when made to institutions authorized by the SAT to receive donations. The total cannot exceed 7% of your taxable income from the previous year, before applying personal deductions.
Retirement contributions:
Voluntary contributions made to your Afore or personal retirement plans are deductible under the LISR.
Local employment taxes:
Local taxes paid on salary income are deductible, provided they do not exceed a 5% rate.
Deduction Limit
The total amount of personal deductions (except for donations and medical insurance premiums) cannot exceed the lower of:
- 15% of your total annual income, or
- Five annual UMAs (approximately MXN 197,000 for 2025).
Prepare Before the Fiscal Year Ends
Taking time before December 31 to review your deductible expenses allows you to:
- Verify that all eligible payments are properly invoiced and documented.
- Avoid losing deduction opportunities due to missing or incorrect receipts.
- Plan next year’s tax strategy with better control and compliance.
Download Our Complete Tax Deductions Guide
To help you make the most of your deductions, Mextax has created a complete downloadable guide that explains every deductible expense in detail—what qualifies, what doesn’t, and how to document it properly.
Download the full guide and start preparing for a smooth and compliant tax closing this year.
Get Expert Tax Support with Mextax
At Mextax, we specialize in accounting and tax services for foreigners in Mexico. Our bilingual accountants help you review, organize, and optimize your personal deductions to ensure full compliance with Mexican tax law.
Contact Mextax today to maximize your deductions and start the new fiscal year with confidence and peace of mind.
