Do you know how much taxes are taken from you if you earn $12,000 a month? Working in Mexico and earning a gross salary of $12,000 pesos a month implies considering that a significant part of that income will go to paying taxes.
Institutions like the Service tax administration (SAT) and the Mexican Social Security Institute (IMSS) are responsible for collecting these taxes.
Among the taxes that have a direct impact on employment, the Income Tax (ISR), which is applied to the income of the employees.
Employers are required to withhold and pay the corresponding ISR using a table of progressive rates that vary based on income.
In the case of a gross salary of $12,000 pesos per month during the year 2023, it is estimated that approximately $1,171 pesos would go to Income Tax, in addition to another $298 pesos that would be deducted for the Mexican Social Security Institute (IMSS).
This means that of the $12,000 pesos of monthly gross income, around $1,468 pesos would be used to pay ISR and IMSS, leaving an available balance of approximately $10,532 pesos.
In addition to these taxes, the employer must also make other payments for a total of $3,014 pesos, considering a gross monthly salary of $12,000 pesos. These contributions correspond to the Mexican Institute of Social Security (IMSS) and the Institute of the National Housing Fund for Workers (Infonavit).
In some states of the country, the Payroll Tax is also applied, which must be withheld and paid by employers based on the total amount of the payroll.
On the other hand, the government applies the Value Added Tax (VAT), which is an indirect tax applied to the consumption of goods and services. In addition to VAT, in certain cases the Special Tax on Production and Services (IEPS) will also be charged.
In Debate we will continue to touch on this type of topic in the Economy section, keep an eye on our publications.
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