Mexico's 2026 Plan Would Raise Interest Withholding to 0.90%

Overview

• The Finance Ministry’s proposal to lift the provisional ISR withholding on interest from 0.50% to 0.90% is included in the 2026 Income Law and still requires congressional approval, where Morena holds a majority.
• Banks would continue to collect the withholding at source on interest from instruments like Cetes, bonds and investment funds as a provisional ISR credit applied through the annual return.
• Until lawmakers decide, the current 0.50% withholding remains in effect.
• Under the proposed rate, financial institutions would retain 9 pesos per 1,000 pesos of interest, up from 5 pesos today.
• Opposition and analysts warn of reduced net returns and a de facto tax for savers who do not file annual returns, while the government argues a fixed 0.90% would be lower than the formula-based rate of about 1.77%.