Tax Revenue Weakens in 2026; Income Tax Collections Fall 6.2% January-July

Mexico's tax revenue collection experienced a slowdown in the first seven months of 2026, largely driven by a decrease in income tax (ISR) receipts. Data from the Tax Administration Service (SAT) reveals that total tax collections during this period amounted to 3.407 trillion pesos, an increase of 128.5 billion pesos from January-July 2025.

However, this modest growth contrasts sharply with the previous year, when nominal growth reached 443.8 billion pesos. The decline in ISR, which taxes both individual and corporate income, is a significant factor. Collections from ISR fell by 6.2%, totaling 1.777 trillion pesos from January to July 2026, down from 1.819 trillion pesos in the same period of 2025 when it had registered a 7.1% increase.

The SAT attributed the drop in ISR revenue to lower payments associated with the annual corporate tax declarations, which concluded in March. In contrast, Value Added Tax (IVA), levied on consumption, showed a slight increase, adding 129.6 billion pesos to reach 1.041 trillion pesos. Similarly, the Special Tax on Production and Services (IEPS) also saw an uptick, rising from 379 billion pesos to 401.7 billion pesos over the same seven-month period.

The SAT acknowledged taxpayers who met their obligations, stating that their contributions strengthen revenue collection, foster economic development, and promote the well-being of the population. The government is preparing its 2027 fiscal package, which is expected to focus on increased fiscal oversight rather than new taxes, with accountants anticipating greater use of technology and independent audit programs.