Gaming tax & duties
IEPS on juegos con apuestas y sorteos (Mexico) (IEPS)
Mexico's federal excise on gambling: 50% of amounts collected less prizes paid since 1 January 2026 (30% before), also charged to foreign online operators serving Mexican users.
Definition
The Impuesto Especial sobre Producción y Servicios taxes games with bets and draws under art. 2 II B of the Ley del IEPS. The decree published in the Diario Oficial de la Federación on 7 November 2025 raised the rate from 30% to 50% for 2026 and brought online gambling offered to users in Mexico by foreign residents without a Mexican establishment into the same 50%, collected through the digital-services rules: intermediation platforms retain 100% of the tax, and a non-paying provider faces temporary blocking of its digital service and publication of its name and blocking date by the SAT and in the Diario Oficial. The base (art. 18) is the total collected from participants less prizes effectively paid and refunds. On top sit the federal participation fixed in each permit (advisers report 1-2% of bets), state taxes that vary by state, corporate income tax at 30%, and the 1% withholding on prizes under Ley del ISR art. 138 (21% where a state levies more than 6%).