• The initiative is based on the principles of social justice, the fight against corruption, republican austerity and prioritization of the most vulnerable sectors.
• Emphasis is placed on the continuity of public policies aimed at strengthening the domestic market, food and energy self-sufficiency, and public investment for social welfare.

• Estimated total income: MXN 10,193,683.7 million
• Main sources:
  • Taxes: $5,838,541.1 million pesos (57% of the total).
    • ISR (income tax): MXN 3,070,149.1 million
    • VAT: MXN 1,589,069.0 million
    • IEPS (fuels, beverages, tobacco, etc.): MXN 761,501.9 million
    • Foreign trade taxes: MXN 254,756.8 million
  • Social security fees and contributions: MXN 641,782.1 million
  • Duties: MXN 157,081.7 million
  • Products: MXN 16,488.3 million
  • Benefits: MXN 203,520.5 million
  • Income from sales of goods and services (Pemex, CFE, IMSS, ISSSTE): MXN 1,630,973.6 million
  • Transfers from the Mexican Petroleum Fund: MXN 232,630.4 million
  • Income derived from financing (debt): MXN 1,472,626.4 million 

• Budget revenues as a percentage of GDP:
  • 2021: 22.3%
  • 2025 (estimated): 21.9%
  • 2026-2031 (projection): 22.4% per year
• Share of oil revenues: it remains around 3% of GDP for the coming years.
• Share of non-oil revenues: about 19.4% of GDP.

• Authorized domestic net indebtedness: pp to MXN 1.78 trillion.
• Authorized net external indebtedness: up to USD $15,500 million.
• Pemex: internal debt up to MXN 160,619.6 million and external debt up to USD 5,342.1 million.
• CFE: internal debt up to MXN 8,764.2 million and external debt up to USD 969 million.
• Mexico City: net indebtedness up to MXN 3,500 million for public works.

• Financial system:
  • Standardization of rules for the deduction of bad debts with the rest of the taxpayers that are not banking institutions.
  • Elimination of the deduction of three-quarters of the fees paid to the IPAB by multiple banking institutions.
• Digital platforms:
  • The proposal extends the VAT and ISR withholding regime to legal entities (B2B), applying the same logic that is currently used for individuals. The digital intermediation platform must withhold:
    • 50% VAT withholding and 4% ISR, when the seller (legal entity) provides a Mexican RFC to the digital intermediation platform
    • 100% VAT withholding and 20% ISR when the seller does not provide an RFC.
  • In addition, the platform needs to withhold 100% VAT in these scenarios:
    • When sales are made by non-residents when the goods are in Mexico.
    • When the price of sales, services or temporary use or enjoyment of goods is deposited in foreign bank accounts.
  • Platforms must issue withholding CFDIs in all the above cases and report information from all sellers, including legal entities, non-residents, and Mexican sellers with foreign settlements, even if the platform does not process the payment. The SAT will issue more administrative rules.
  • The reform aims to address evasion schemes, such as individuals posing as legal entities or non-residents who use Mexican RFC to circumvent the platform's obligations.
  • Finally, the ISR withholding rate applicable to Mexican individuals who sell or provide services through intermediation platforms, increases from 1% to 2.5%.
  • The Executive proposes an important new obligation for digital platforms that would require digital service providers (both foreign residents and Mexicans) to grant the SAT online and real-time access to operational data and records of Mexican transactions. The technical specifications will be published by the SAT through general administrative rules. Failure to comply with this new provision will trigger the temporary blocking of internet access (kill switch).
• Repatriation of capital:
  • A tax benefit is proposed to pay 15% of ISR without any deduction on capital repatriated to Mexico from licit resources.
  • The resources returned from abroad must be used for productive activities for a minimum period of 3 years in light of “Plan Mexico”.

• Adjustment in surcharge rates: 1.38% per month on unpaid balances; differentiated rates for installment payments.
• Fiscal incentives: for agricultural, transport, mining, culture and books sectors, as well as for natural gas imports.
• 100% tax incentive for fines, surcharges and enforcement expenses: taxpayers who do not exceed 300 million pesos of total income in the 2024 fiscal year, if they correct all irregularities before December 31, 2026, among other rules.
• Exemptions and benefits: exemptions are maintained for certain sectors and tax benefits are granted for the organization of the 2026 FIFA World Cup.
• Withholding of ISR on interest: a rate of 0.90% per year is established for 2026 (which has been 0.50% in 2025).

• Austerity and transparency: measures are reinforced to ensure the efficient and transparent use of public resources.
• Federal revenue that can be shared: it is estimated at MXN 5.34 billion.
• Investment in human capital: up to 3.6% of GDP in education, health and training, excluding budget balance.
• Pension Fund for Welfare: surpluses and surplus resources from various sources are allocated to strengthen this fund.

• International environment: a context of global uncertainty is recognized, but Mexico is expected to maintain moderate growth, supported by domestic demand, exports and social programs.
• Risks: risks persist due to international volatility, trade policy and revision of the USMCA.

• The Federal Revenue Law for 2026 will come into force on January 1, 2026.

• Tax increase: it is proposed to increase the IEPS rate for cigarettes, cigars and other manufactured tobacco from 160% to 200%, and for handmade cigars from 30.4% to 32%. In addition, the specific quota per cigarette increased from MXN 0.6445 in 2025 to MXN 1.1584 in 2030, with gradual increases each fiscal year from 2026 to 2029.
• New taxed products: other products containing nicotine, natural or artificial (such as nicotine pouches), are included in the taxable base, with the same rate of 200% and a specific quota based on nicotine content.
• Exemptions: nicotine products used as replacement therapy that are registered as a drug are exempt from the IEPS.
• Rationale: the goal is to reduce affordability and consumption, especially among young people, and align with international recommendations from the World Health Organization (WHO) and the Organisation for Economic Co-operation and Development (OECD).

• Quota increase: the specific quota per liter of flavored beverages is raised from MXN 1.6451 in 2025 to MXN 3.0818 in 2026.
• Broadening the base: Flavored beverages containing added sweeteners, whether natural or artificial, not just sugars, are now also taxed.
• Reason: Mexico has one of the highest consumptions of flavored beverages, which contributes to obesity and chronic diseases. The increase seeks to discourage its consumption and improve public health.

• Rate increase: the IEPS rate for games with bets and sweepstakes is increased from 30% to 50%, including those carried out online or electronically by residents abroad.
• Digital regulation: tax obligations and penalties are established for digital platforms and foreign operators that offer these services in Mexico, including the temporary blocking of access in case of non-compliance.
• Rationale: the growth of the industry and the associated social and economic risks justify a higher tax burden and control.

• New tax: it is proposed to tax at a rate of 8% of the IEPS the sale and download of video games with violent, extreme or adult content, not suitable for minors under 18 years of age, both in physical and digital format.
• Definition and scope: includes video games with intense violence, blood, graphic sexual content, strong language, or real currency gambling. Additional paid content within the video game and memberships or subscriptions that give access to this type of game are also taxed.
• Obligations for platforms: digital platforms must withhold and pay the tax, publish prices with IEPS included and provide information to the SAT.
• Reason: the aim is to reduce the exposure of minors to these contents and address the negative externalities in mental and social health.

• Mexico City: the references from "Distrito Federal" to "Ciudad de México" in the Law are updated.

• Entry into force: the decree will enter into force on January 1, 2026. The new specific quota for cigars will be applicable from January 1, 2030, with gradual and transitory quotas for the years 2026 to 2029.
• Rules for prior operations: rules are established for operations entered into before the entry into force of the decree.

• Measures to combat the issuance and use of false tax receipts (false invoices) are reinforced, including informal preventive detention for any activity related to these invoices.
• The definition of false receipt is expanded: not only apocrypha, but also those that, although stamped by the SAT, cover non-existent, false or simulated transactions.
• The SAT may deny registration in the RFC to legal entities whose partners, shareholders or legal representatives have been involved in companies with a history of non-existent operations, firm tax credits, or convictions for tax crimes.
• It is established as a requirement that tax receipts (CFDI) cover real, true and existing operations. If they do not comply, they will be considered false.
• An expedited procedure for tax assessments is created to verify the veracity of the CFDI, with immediate suspension of the billing of the alleged offender and abbreviated deadlines for resolution.

• The obligation to verify the identity of users in the creation of advanced electronic signatures is eliminated, leaving only the SAT in charge.
• Individuals in the Simplified Trust Regime are exempt from filing an annual return, having to make only final monthly payments.
• The deadline for canceling CFDI is extended until the month in which the annual income tax return must be filed, according to the criteria of the Supreme Court.
• It is specified that administrative reconsideration only proceeds with respect to final resolutions that determine tax credits.
• A mitigated fine or penalty rate is granted to taxpayers of the Simplified Trust Regime for infractions related to the issuance of CFDI.
• The deadline for non-personal tax notifications is extended from 3 to 20 business days.

• New grounds are added for the temporary restriction of the digital seal certificate for invoicing, including firm unpaid tax credits and improper practices in the commercialization of hydrocarbons.
• The tax authority is allowed to verify account statements of all financial institutions, not just banks.
• The assumptions for the suspension and cancellation of the RFC due to inactivity are reinforced, to purge the register and prevent the improper use of inactive companies.
• Notaries publics are obliged to rule on the authenticity of documents submitted to the SAT when required.
• The obligation to include the current permit number of the National Energy Commission in the CFDI of hydrocarbons and petroleum products is established.
• Real-time review of digital platforms is added, forcing digital service providers to provide online and real-time access to the tax authority.
• The use of technological tools (photos, videos, audios) is authorized in home visits and verifications of goods in transport.

• The obligation of the registered public accountant to report on acts potentially constituting a crime, because of the preparation of his opinion, is modified.
• The marketing of cigarettes without a security code or with an apocryphal code will be equated to the crime of smuggling.
• The presentation of false facts or documents in tax proceedings is criminally punishable.
• New assumptions of presumption of smuggling are added, especially for maquiladoras and simulated foreign trade operations.
• Penalties are toughened for those who falsely certify the origin of goods to obtain preferential tariff treatment.

• The order and modalities to guarantee the fiscal interest are restructured, prioritizing the “Banco del Bienestar” deposit note.
• The exemption from guaranteeing the tax credit when promoting revocation appeals is eliminated, to avoid evasive practices.
• Deadlines and procedures are adjusted for notifications, seizures, freezing of accounts and enforcement of tax credits.
• Specific sanctions are established for the destruction or alteration of closure seals and for the issuance of CFDI conditional on the presentation of the Tax Identification Card.

• The reforms to the Federal Tax Code will enter into force on January 1, 2026.
• Proceedings initiated before the entry into force shall be resolved in accordance with the legislation in force at the time of their initiation.

• 14.2% increase in the fee for a visitor document without permission for paid activities.
• 100% increase in quotas for temporary and permanent residents.
• 50% discount for certain migratory profiles (family unit, job offer, institutional invitation).
• Charge for authorization to board vessels in deep-sea navigation.
• Charge for the issuance of the Authorization Form for the Departure of minors.

• Exemption from duties for simplified registration of securities.
• Proportional calculation methodology for simplified broadcasters.
• Elimination of fiscal oversight for simplified issuers.

• 50% of the income from duties will go to the SAT to improve printing and authenticity.

• Extinction of the Federal Economic Competition Commission.
• Creation of the National Antimonopoly Commission.
• Repeal of articles related to duties by notification of concentration.

• Increase in quotas for phytosanitary and zoo sanitary certificates for export.

• Adjustment of fees for aeronautical services, certifications, verifications and licenses.
• Exemption from payment between decentralized bodies in the same sector.

• Replacement of the Federal Telecommunications Institute by the Digital Transformation and Telecommunications Agency.
• Creation of the Telecommunications Regulatory Commission.
• Reforms to reflect new legal figures and concessions.
• Discounts for the use of the radio spectrum conditional on coverage in priority areas.
• Exemption for community, indigenous and Afro-Mexican concessions.

• Elimination of the collection for the settlement procedure.
• 100% of the income from rights will go to the National Copyright Institute.

• Elimination of the water quality certificate as a requirement for tax exemption.
• Review of quality parameters in accordance with NOM-001-SEMARNAT-2021.
• Reinforcement of coercive collection for non-compliance in water infrastructure programs.

• Inclusion of new municipalities (El Dorado and Juan José Ríos) in ZONE II.
• Update of the name of the municipality from Solidaridad to Playa del Carmen.

• Creation of Category IV for archaeological zones with a museum (Chichén Itzá, Uxmal, Dzibilchaltún).
• Discounts for nationals and residents in categories I, II and III.
• Free access to the National Museum of Architecture.

Transitional provisions

• Most of the amendments to the Federal Rights Act will take effect on January 1, 2026.
• Some provisions will depend on the integration of new agencies (Telecommunications Regulatory Commission and National Antimonopoly Commission)

• The budget regulates the planning, exercise, control, monitoring, and evaluation of federal public spending for 2026, in accordance with the Federal Budget and Fiscal Responsibility Law and other related laws.
• The administrative interpretation corresponds to the Ministry of Finance and the Secretariat of Anti-Corruption and Good Governance.
• Budget information must be sent to the Chamber of Deputies and published in electronic format.

• Total net expense: MXN 10,193,683,700,000.
• Projected budget deficit: MXN 1,393,770,634,695.
• The expenditure is distributed in annexes and volumes that detail expenditures by autonomous, administrative, general branches, investment projects, multi-year commitments, salary forecasts, public debt, and priority programs (education, health, gender equality, rural development, etc.).

• Rules are established for the transfer of resources to states, municipalities and demarcations of Mexico City.
• Federal funds must be exercised in accordance with the law and reported quarterly.
• Formulas for the distribution of funds such as FORTAMUN and FAM are detailed, considering variables such as GDP per capita and population.

• The sub-exercises and savings will be reallocated to social programs and infrastructure.
• Austerity measures and budgetary discipline are reinforced: no creation of positions except for exceptions, control of remuneration, consolidation of public contracts, and transparency in contracts and payments.
• The use of resources for purposes other than those authorized is prohibited and control and reporting mechanisms are established.

• Minimum and maximum payments are set for public servants of all powers and autonomous bodies.
• Tabulators and benefits are detailed for each hierarchical level, including base salaries, compensation, Christmas bonuses, bonuses, insurance and other benefits.
• Extraordinary payments for the term of assignment or administration are prohibited.

• Gender perspective is mainstreamed in all federal programs.
• Inclusion of people with disabilities and the integral development of indigenous and Afro-Mexican peoples are promoted, with labeled resources and specific rules of operation.

• New long-term productive infrastructure projects are authorized, mainly for the Federal Electricity Commission.
• The mechanisms for evaluating the performance of budget programs are detailed, with emphasis on results and transparency.

• Programs subject to operating rules and the main federal programs are listed, including scholarships, pensions, support for the countryside, health, housing, culture, science and technology.
• Annexes are included with amounts assigned by state and by program.

• The decree will come into force on January 1, 2026.
• Rules are established for administrative continuity; transfers of resources and budgetary adjustments derived from legal reforms.