Standard 16% IVA · 0% food and medicines · 0% border zone rate removed 2021
Mexico's IVA (Impuesto al Valor Agregado) standard rate is 16%. A 0% rate applies to food (unprocessed), medicines, certain agricultural activities, and exports. Mexico eliminated its reduced 8% border zone rate in 2019 — the full 16% now applies nationwide.
Quick answer
Add VAT to a net price or remove VAT from a gross total below. Use the editable rate field for reduced rates, special categories, or invoice checks.
Calculator
Change this anytime — no extra click. Verify final rates with your state or country tax authority.
Quick amounts
Educational tool only — not tax advice. Confirm rates before filing or pricing for customers.
All Mexico VAT rates
Type any rate directly in the rate field above to switch rates.
How to use and formula
Enter the amount, use the standard 16% rate or type a reduced rate, then choose whether you want to add VAT to a net price or remove VAT from a gross total.
Gross = net x (1 + rate / 100)
Net = gross / (1 + rate / 100)
VAT amount = gross - net
Example at 16%: $100 net becomes $116.00 gross.
Fast checks for adding or removing VAT at the most common rates.
$116.00 gross
$100.00 x 16% = $16.00 VAT.
$100.00 net
$116.00 ÷ 1.16 = $100.00 before VAT.
Rates and rules on this page were last reviewed in January 2026 against https://www.sat.gob.mx. Use the linked authority for filing, registrations, or address-specific compliance.
Mexico applies a 16% IVA rate uniformly nationwide since 2019, when the reduced border zone rate was eliminated. Basic unprocessed food and medicines are zero-rated at 0%. Mexico's IVA is collected monthly with digital CFDI invoicing required for all transactions.
Mexico may have reduced, zero-rated, or exempt supplies. Match the product category before applying the standard rate.
To extract VAT, divide by 1 + rate/100 — do not subtract 16% from the total.
Mexico's IVA rate is 16% nationwide. Unprocessed food and medicines are zero-rated (0%).
Most basic unprocessed food items are zero-rated (0% IVA) in Mexico. Processed food, restaurant meals, and alcohol are taxed at 16%.
Divide the gross (tax-inclusive) amount by 1 + (16 ÷ 100). At 16%, divide by 1.16.
Use this page to add VAT, remove VAT, or check invoice math for Mexico. For filing, registration, refunds, or special categories, confirm the current rule with the official source because reduced rates and exemptions can change.