The Mexican Social Security Institute has detailed exactly how much retirees should not exceed to have obligations to the Tax Administration Service.
As April 2026 approaches, thousands of retirees from the Mexican Social Security Institute (IMSS) are preparing to receive their monthly payments. A common question arises: will the Tax Administration Service (SAT) withhold a portion of their money? While most pensions are exempt from taxes, a specific limit established by the Income Tax Law (ISR) exists, and exceeding it requires pensioners to contribute to the government.
An IMSS pension represents a benefit earned after years of service, but the SAT considers these earnings as taxable income under certain conditions. For 2026, these values have been adjusted according to the Measurement and Update Unit (UMA), determining who will receive their full payment and who will see a retention in their account statement.
What is the maximum amount to be exempt from taxes in 2026?
According to article 93, section IV of the ISR Law, pensions and retirements are exempt from tax payment as long as the daily amount does not exceed 15 times the value of the UMA. For April 2026, this translates to an approximate monthly limit of 49,000 to 51,000 Mexican pesos (depending on the current value of the UMA for the current tax year).
If your monthly pension remains below this threshold, the SAT will not build any deductions for ISR. Although, if you are among the few whose pension exceeds 50,000 pesos per month, the tax will not apply to the total amount, but only to the excess. For example, if you receive 55,000 pesos, you will only pay taxes on the 5,000 pesos that exceed the exemption limit.
Who should file an annual return in April?
April is not only the month for pension payments, but also the period for individuals to file their 2025 Annual Return. IMSS and ISSSTE retirees are not exempt from this obligation if they meet the following conditions:
-
If the amount of their annual pension exceeds 400,000 pesos.
-
If they receive income from two or more pension systems simultaneously.
-
If, in addition to the pension, they receive income from other concepts such as rent or business activity.
Complying with this obligation is vital to avoid fines or surcharges. Filing the annual return may be beneficial if the retiree has personal deductions (medical expenses, hospital expenses, optical lenses or dental services), which could generate a balance in favor and a refund of money from the SAT.
