Mexican employees should prepare for potential tax deductions on their 2026 profit sharing payments based on a specific income threshold.
According to expansion.mx, not all profit sharing amounts are subject to taxation. The law establishes a specific limit before any deductions begin.
This threshold is equivalent to 15 days of the Unit of Measure and Update (UMA). For 2026, the daily value of the UMA is set at 117.31 pesos.
In real terms, this means that if a worker receives up to 1,759.65 pesos, they will not face any tax discounts. The tax applies only to the amount that exceeds this limit, which explains why some employees receive less than originally expected.
Payment deadlines and eligibility
The timing of these payments depends on the employer's legal structure.
Employees working for corporations (legal entities) must receive their payment no later than May 30. This deadline follows the company's tax declaration period in March.
For those working for individuals (physical persons), the deadline extends to June 29. This delay accounts for the April tax declaration period for individual employers.
To qualify for the 2026 distribution, the company must have generated profits during the 2025 fiscal year. Additionally, the employee must have worked at least 60 days during that period.
Workers can verify their eligibility by contacting their supervisors or Human Resources departments. In unionized environments, labor representatives also handle this communication.
Employees also have the right to request a copy of the company's annual tax return to confirm profit levels. Companies must provide this document by April 14, 2026.
If workers believe their payments are incorrect, they can seek free guidance from the Federal Attorney's Office for Labor Defense (Profedet).