I'm a freelancer in Mexico — what is RESICO and should I use it?
RESICO (Régimen Simplificado de Confianza) is Mexico's simplified tax regime for individuals: instead of the regular ISR progressive rates (1.92%–35%) with deductions, you pay a flat 1%–2.5% on gross income actually collected, with no deductions at all. For most freelancers under the cap, it is dramatically cheaper — but it has hard edges that kick people out, often discovered at invoicing time.
The 2026 rate table (LISR Art. 113-E)
The rate applies to your total monthly collections (not marginal brackets), with no deductions and no IVA included:
| Monthly income collected | ISR rate |
|---|---|
| Up to $25,000 | 1.00% |
| Up to $50,000 | 1.10% |
| Up to $83,333.33 | 1.50% |
| Up to $208,333.33 | 2.00% |
| Up to $3,500,000 | 2.50% |
Key rules: annual income cap of $3,500,000 MXN; tax is computed monthly on cash actually received (efectivamente cobrados); payments are monthly and, for 2026, the annual return is waived (monthly payments are definitive).
The traps
- Exceeding the cap — go over $3.5M at any point in the year and you're out from the following month.
- Being a partner/shareholder in certain entities disqualifies you.
- Missing 3 or more monthly payments in a calendar year (consecutive or not) gets you removed (Art. 113-I).
- Breaching ongoing duties — active e.firma, active buzón tributario, issuing CFDI for all income, making monthly payments (Art. 113-G).
- One thing that does not disqualify you: earning interest from investments like CETES — PRODECON clarified this in September 2026 after SAT systems wrongly removed people for it.
Note: a 2027 reform package approved en lo general by the Chamber of Deputies proposes raising the cap to $5M, but it is not law — 2026 figures remain $3.5M.
Frequently asked questions
Is RESICO always better than the regular regime?
For freelancers with few deductible expenses and income under the cap, almost always — 1–2.5% on gross beats 35% marginal on net. If you have large deductible expenses, run the numbers both ways.
Can I switch into RESICO mid-year?
Switching is possible but timing-sensitive, and people who switch often over- or under-pay in the transition because RESICO taxes cash received while the regular regime taxes accrued income. Get the cutover month right.
Do I still charge IVA under RESICO?
Yes — RESICO replaces ISR only. IVA (16%, or 8% border stimulus) works exactly the same, including monthly IVA filings.
Sources
- https://dual.tax/guides/mx-resico-regime
- LISR Art. 113-E (rates, cap, cash basis) — via SEGOB legislative archive
- IMCP bulletin on Art. 113-I removals — https://imcp.org.mx
- PRODECON clarification on investment interest (Sept 2026) — https://idconline.mx