Tool
Tax depreciation calculator
Work out the annual and monthly deduction on a fixed-asset investment, using the maximum rates authorized by the LISR (Mexican Income Tax Law).
Annual deduction
—
Straight-line tax depreciation
Monthly deduction—
Tax life of the asset—
Rate applied—
Assumptions & method
- Maximum authorized rates from Arts. 34 and 35 of the LISR (Income Tax Law) (straight-line on the original amount of the investment): buildings 5%, furniture 10%, cars and trucks 25%, computer equipment 30%, general machinery 10%.
- For cars, the deduction has a value cap (Art. 36-II LISR: $175,000 MXN in general; higher for electric/hybrid vehicles) — if the car costs more, the excess is not deductible.
- The law also allows the deduction to be adjusted for inflation; here we show the base calculation without that adjustment.
- Applies to companies and individuals with business activity; confirm your case with your accountant.
FAQ
The essentials, in brief
What is tax depreciation?
Deducting an investment in increments over its useful life, instead of all at once in the year of purchase. The LISR sets the maximum annual percentage by type of asset; you may deduct less, but not more.
Can I deduct the IVA on the asset?
IVA (Mexico's VAT) is not depreciated: it is credited against the IVA you collect in the period of the purchase (if the asset is used for taxable activities). What is depreciated is the amount excluding IVA.
What happens if I sell the asset early?
In that fiscal year you deduct the portion not yet depreciated and recognize the income from the sale; the difference produces a taxable gain or loss. The date and invoice paperwork matter — document the disposal.
Next step
Tell us about your deal
Tell us how much you need and what collateral you can offer. We'll tell you frankly whether it's viable and how we'd structure it.
Request via WhatsApp →