How Mexico IVA works
Mexico charges 16.00% IVA on most goods and services. 16% standard rate; an 8% rate applies in some border zones.
IVA is added to the net price to give the gross price the customer pays. To work backwards from a gross price, you divide by 1.16 to find the net amount.
Businesses generally collect IVA on sales and reclaim it on purchases, so it is ultimately borne by the end consumer.
Adding vs removing IVA
Use "add" when you have a net (tax-exclusive) price and want the final price. Use "remove" when you have a gross (tax-inclusive) price and need the net amount — useful for invoices and expense claims.
This calculator does both and shows the IVA amount separately so you can record it correctly.
What is taxed
Most goods and services carry the standard rate, but many countries apply reduced or zero rates to essentials such as food, books or children's items.
This is a planning estimate at the standard 16.00% rate. Confirm the correct rate for your product with the Servicio de Administración Tributaria (sat.gob.mx).
Frequently asked questions
What is the IVA rate in Mexico?
The standard IVA rate in Mexico is 16.00%. 16% standard rate; an 8% rate applies in some border zones.
How do I add IVA to a price?
Multiply the net price by 16.00% to get the IVA, then add it on. This calculator does it instantly.
How do I remove IVA from a gross price?
Divide the gross price by 1.16 to find the net amount; the difference is the IVA.
Is everything taxed at the standard rate?
No — reduced and zero rates apply to some categories. Check the Servicio de Administración Tributaria (sat.gob.mx) for the rate on your specific product.