Does Mexico have an inheritance tax?

No. Mexico abolished its federal inheritance and gift tax decades ago. Inheritances received by individuals are generally treated as exempt income, especially between spouses and direct ascendants or descendants, so there is no estate duty on the bequest itself.

So is inheriting property free in Mexico?

Not entirely. While there is no inheritance tax, transferring inherited real property into the heir's name triggers the ISABI acquisition tax (usually 2–4%) plus notary and registration fees, just like a normal purchase. Cash and personal assets pass without these costs.

When could income tax (ISR) apply?

If the inheritance is large and not properly declared on the heir's annual return, or if the heir later sells inherited property, ISR can apply to the later gain. The inheritance itself is exempt, but you should still report it to keep the exemption clean.

Do close relatives pay less?

Because there is no inheritance tax, the relationship to the deceased does not change the tax — it is exempt for everyone. The relationship can matter for keeping the income-tax exemption and for succession (testamentary) rules, but not for a separate inheritance levy.

Are my figures sent anywhere?

No. The calculation runs entirely in your browser. Nothing you enter is uploaded or stored, so you can model an estate privately.

Mexico Inheritance Tax Calculator

Email me this result

Get this tool's output sent to your inbox, plus one useful tool a week. No spam, unsubscribe any time.

This Mexico inheritance tax calculator shows the real cost of receiving an inheritance in Mexico. The key fact: Mexico has no federal inheritance or estate tax. What an heir actually pays is the property-transfer cost — the ISABI acquisition tax plus notary and registration fees — when real estate is put into their name.

How it works

Mexico abolished its inheritance tax, so the bequest itself is not taxed. The costs arise only when titled assets transfer:

Cash and movable assets pass to the heir with no inheritance tax and no transfer cost.
Real property must be re-titled through a notary, which triggers the ISABI acquisition tax (typically 2–4% of the property value, set by the estado) plus notary and registration fees — exactly as in a normal purchase.

So the heir’s real outlay is:

cost = property_value × (ISABI% + notary% + registration%)

The non-property part of the estate passes tax-free.

Example

An estate worth MXN 5,000,000 including a MXN 4,000,000 house: there is no inheritance tax on the MXN 5M. But re-titling the house with a 3% ISABI, 1% notary and 0.5% registration costs about 4.5% of MXN 4,000,000 = MXN 180,000. The remaining MXN 1,000,000 of cash and assets transfers with no cost.

Notes

The inheritance income is exempt but should still be reported on the heir’s annual return to preserve the exemption. If the heir later sells inherited property, capital gains (ISR) may apply to the gain from the inherited value. ISABI rates vary by estado. This is an estimate, not tax or legal advice — succession in Mexico runs through a notary or court.