Mexico Expat Tax Guide 2025
FEIE, Foreign Tax Credits, banking, visa options & filing strategies for US expats in Mexico.
How Mexico Taxes Work
Mexico's tax system: Worldwide income for tax residents.
FEIE vs Foreign Tax Credit
FEIE covers US tax. Mexico taxes at progressive rates (1.92–35%). Consider FTC to offset Mexican taxes paid.
The FEIE allows you to exclude up to $130,000 of foreign earned income from US taxation in 2025.
Social Security & Self-Employment Tax
Mexico does not have a totalization agreement. Self-employed US expats will owe US SE tax (15.3%) regardless of local contributions.
Banking for US Expats
BBVA Mexico, Banorte, and Hey Banco are options. Many expats use US accounts + Wise.
Visa Options
Temporary Resident visa (4 years) or Permanent Resident visa.
Cost of Living
Low to moderate — $1,500–$2,500/month in Mexico City, less in smaller cities.
Frequently Asked Questions
Do US expats in Mexico need to file US taxes?
Yes. US citizens must file regardless of where they live. The FEIE can exclude up to $130,000.
Should I use FEIE or FTC?
FEIE covers US tax. Mexico taxes at progressive rates (1.92–35%). Consider FTC to offset Mexican taxes paid.
What is the cost of living?
Low to moderate — $1,500–$2,500/month in Mexico City, less in smaller cities.
Compare FEIE vs FTC vs Combined strategies for Mexico.
Try the Calculator →The Capacity Read maps your money, energy, and systems — then gives you the exact sequence to fix them.
Get Your Capacity Read →