Increase in Payroll Tax in Mexico City for 2025: Details and fiscal benefits for businesses

On 27 December 2024, the increase in the payroll tax was published in the Official Gazette of Mexico City, through the modification of Article 158 of the local Fiscal Code.

Starting from January 2025, the rate will be 4% on the total amount of expenditures made for the remuneration of subordinated personal work. 

Additionally, the reform includes a 1% reduction for companies that can annually demonstrate an increase of 33% in their workforce over the previous twelve months or for those that begin operations. 

Furthermore, under the transitional provisions for the 2025 fiscal year, a fiscal benefit of 1% will be granted to micro-enterprises and 0.5% to small businesses, as shown in the following table: 

 

Stratification by Number of Employees

Sector / sizeIndustry CommerceServices
Micro0-100-100-10
Small 11-5011-3011-50

 

At Forvis Mazars, our team of professionals is at your disposal for any analysis or specific enquiries regarding this matter. 

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