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New Payroll Tax Incentive in Baja California

  • Writer: Santinos Digital
    Santinos Digital
  • 3 days ago
  • 2 min read

Decree dated March 27, 2026  / Effective: April 1, 2026 through September 30, 2027

 


The Government of Baja California has published a decree reducing the Impuesto sobre Remuneraciones al Trabajo Personal (ISRTP) - (the state-level payroll tax) for micro and small businesses operating in the state. If your company employs up to 50 people, you may qualify for an exemption of between 29% and 50% of this tax.

 

What Does the Incentive Consist Of?

 

The incentive is a partial exemption from the ISRTP: your company pays less tax than it would otherwise owe. The applicable exemption percentage depends on your number of employees and your average monthly payroll amount, as shown in the table below:

 

Number of Employees

Max. Average Monthly Taxable Payroll

Exemption

Estimated Monthly Savings*

Up to 5

MXN $66,131

50%

Up to MXN $2,646

Up to 10

MXN $132,261

35%

Up to MXN $3,694

Up to 50

MXN $661,305

29%

Up to MXN $15,289

 

* Estimate calculated on the maximum taxable base for each tier, applying the 3% ISRTP rate currently in force in Baja California.

 

What Are the Requirements to Access This Benefit?

 

To apply the exemption, your company must meet all of the following conditions:

 

  • Be registered and current on all obligations before the Padrón Estatal de Contribuyentes de Baja California (the state taxpayer registry).

  • Have no active legal challenges or amparo proceedings (constitutional injunctions). pending against any act or provision issued by the state tax authority.

  • Have no outstanding and enforceable state tax liabilities.

  • File and pay the ISRTP in accordance with Articles 151-14 and 151-19 of the Ley de Hacienda del Estado de Baja California (Baja California State Revenue Law).

 

In short: your company must be in good standing with the state tax authority and must not have any active disputes against local tax authorities.

 

What Should You Do Now?

 

We recommend acting promptly, as the benefit applies from April 1, 2026. The immediate steps are:

 

  • Verify that your company meets all of the requirements listed above.

  • Review your headcount and average monthly payroll to determine which exemption tier applies to your company.

  • Apply the exemption correctly when calculating and filing your monthly ISRTP return.

 

At TP Legal, we can assess your specific situation and guide you through the correct application of this benefit. Don’t miss the opportunity to reduce your payroll tax burden.

 

 
 
 

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