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Cash in Mexico: transactions that cannot be paid in cash, cash deposit reporting and the electronic payment rule for deductions

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Last verified: 2026-10-26 · Status: Stable

Mexico bans paying in cash, pesos or dollars, for certain high value deals: real estate from 8,025 UMA (MXN 941,412.75 in 2026, about USD 50,880) and vehicles, jewelry, art, shares and similar from 3,210 UMA (MXN 376,565.10, about USD 20,352), even when the cash goes through a bank. Taking part in a banned cash deal is fined 10,000 to 65,000 UMA or 10 to 100 percent of the deal, whichever is higher. Banks report to SAT every month the cash deposited by a client above MXN 15,000, and a business expense over MXN 2,000 is deductible only if paid by transfer, cheque or card.

USD conversions use MXN 18.5026 per US dollar, the US Federal Reserve H.10 noon buying rate in New York for 16 October 2026 (FRED series DEXMXUS), the latest observation available when this page was verified. Legal and tax conversions in Mexico use the Banxico FIX published in the DOF, which differs slightly. Conversions are for orientation only.

Key facts

Cash payment ban for real estate deals at or above	8025 UMALFPIORPI art. 32, section I, as of 2026-10-26 · in force
Cash payment ban for real estate deals at or above (2026 value)	941412.75 MXNLFPIORPI art. 32, section I; UMA MXN 117.31, as of 2026-10-26 · in force
Cash payment ban for vehicles, jewelry, art, shares and similar deals at or above	3210 UMALFPIORPI art. 32, sections II to VII, as of 2026-10-26 · in force
Cash payment ban for vehicles, jewelry, art, shares and similar deals at or above (2026 value)	376565.10 MXNLFPIORPI art. 32, sections II to VII; UMA MXN 117.31, as of 2026-10-26 · in force
Fine for taking part in a banned cash deal	10,000 to 65,000 UMA or 10 to 100 percent of the deal, whichever is higher LFPIORPI arts. 53, section VII, and 54, section III, as of 2026-10-26 · in force
Monthly cash deposits per bank reported to the tax authority above	15000 MXNLISR art. 55, section IV, as of 2026-10-26 · in force
Expenses must be paid electronically to be deductible above	2000 MXNLISR art. 27, section III, as of 2026-10-26 · in force
Cash and checks carried across the border must be declared above	10000 USDLey Aduanera art. 9, as of 2026-10-26 · in force

The rule

1. High value deals that cannot be settled in cash. It is forbidden to perform obligations, or to pay or accept payment, using coins and banknotes in pesos or foreign currency, or precious metals, even if the cash goes through a financial entity, for: creating or transferring real rights over real estate worth 8,025 UMA or more; transferring or creating real rights over new or used aircraft, boats or land vehicles worth 3,210 UMA or more; transferring watches, jewelry, precious metals and stones (per piece or lot) and works of art worth 3,210 UMA or more; buying tickets for or paying prizes from gaming, contests or draws of 3,210 UMA or more; armoring vehicles or buildings for 3,210 UMA or more; transferring or creating rights over shares or partnership interests worth 3,210 UMA or more; leasing or granting use of real estate, vehicles or armoring of 3,210 UMA or more a month; and deposits in payment related to any of those deals. The UMA value is the one in force on the day of payment.
Cost to do it: No fee. In 2026, at MXN 117.31 per UMA, the thresholds are MXN 941,412.75 (about USD 50,880) for real estate and MXN 376,565.10 (about USD 20,352) for the other listed deals; rent of the listed assets counts monthly.
Example: A buyer agrees to purchase a warehouse for MXN 9,251,300. The price must be paid by transfer, cheque or another non cash means; paying any part in banknotes, pesos or dollars, would breach art. 32. / Warehouse price about USD 500,000; cash ban applies from about USD 50,880.Ley Federal para la Prevención e Identificación de Operaciones con Recursos de Procedencia Ilícita (LFPIORPI), DOF 17 October 2012 (Chamber of Deputies consolidated text, last reform DOF 16 July 2025), Art. 32 (reformed DOF 16 July 2025), 2025-07-16 official text · verified 2026-10-26

2. Fines for cash breaches. Anyone who takes part in a deal banned by art. 32 is fined 10,000 to 65,000 UMA, or 10 to 100 percent of the value of the deal when it can be quantified in money, whichever is higher. Fines are tax credits collected through the tax enforcement procedure. For a first breach, the Ministry of Finance must refrain from fining an offender who complies spontaneously before verification starts and acknowledges the breach in the initial phase of the procedure. Supplying false information for the notices that vulnerable activities must file is a crime punished with two to eight years in prison.
Cost to do it: 2026 range: MXN 1,173,100 to MXN 7,625,150 (about USD 63,402 to USD 412,112), or 10 to 100 percent of the deal if higher.
Example: A seller who accepts MXN 1,000,000 in cash toward a MXN 9,251,300 property can be fined at least the greater of MXN 1,173,100 or 10 percent of the deal (MXN 925,130), so at least MXN 1,173,100. / On a USD 500,000 property, a minimum fine of about USD 63,402.Ley Federal para la Prevención e Identificación de Operaciones con Recursos de Procedencia Ilícita (LFPIORPI), DOF 17 October 2012 (Chamber of Deputies consolidated text, last reform DOF 16 July 2025), Arts. 52, 53, section VII, 54, section III, 55 and 62 (reformed DOF 16 July 2025), 2025-07-16 official text · verified 2026-10-26

3. Banks report cash deposits above MXN 15,000 a month. Financial institutions must report to SAT monthly, by the 17th of the following month, the cash deposits made into accounts of a taxpayer when the monthly total across all the taxpayer's accounts at the same institution exceeds MXN 15,000, and all cash purchases of cashier's cheques.
Cost to do it: No fee. The report itself is not a tax, but SAT can compare it with declared income.
Example: A restaurant deposits MXN 60,000 of cash takings in a month at one bank. The bank reports the deposits to SAT by the 17th of the next month. / About USD 3,243 a month in cash triggers the report (threshold about USD 811).Ley del Impuesto sobre la Renta (LISR), DOF 11 December 2013 (Chamber of Deputies consolidated text, last reform DOF 1 April 2024), Art. 55, section IV, 2013-12-11 official text · verified 2026-10-26

4. Deductible expenses over MXN 2,000 must be paid electronically. To be deductible, expenses must be supported by an electronic tax receipt and, when the payment exceeds MXN 2,000, paid by electronic transfer from an account in the taxpayer's name at a financial institution (or an entity authorized by Banxico), by nominative cheque from the taxpayer's account, or by credit, debit or service card or SAT authorized electronic purse. Fuel for vehicles must be paid by those means whatever the amount.
Cost to do it: Losing a deduction costs 30 percent of the expense at the corporate rate: MXN 600 for every MXN 2,000 not deductible.
Example: A company pays a supplier MXN 25,000 in cash for maintenance. Even with an invoice, the expense is not deductible, costing MXN 7,500 of extra tax at 30 percent. / About USD 1,351 paid in cash; about USD 405 of tax lost.Ley del Impuesto sobre la Renta (LISR), DOF 11 December 2013 (Chamber of Deputies consolidated text, last reform DOF 1 April 2024), Art. 27, section III (fuel paragraph reformed DOF 12 November 2021), 2013-12-11 official text · verified 2026-10-26

5. Crossing the border with cash. Anyone entering or leaving Mexico with cash, cheques, payment orders or other collectible documents worth more than the equivalent of USD 10,000, alone or combined, must declare them to customs; the fine for not doing so is 20 to 40 percent of the excess. Details and examples are on the FX overview page.
Cost to do it: Declaring is free; not declaring costs 20 to 40 percent of the excess.
Example: A traveler with USD 25,000 in cash who does not declare faces a fine of USD 3,000 to USD 6,000 (MXN 55,508 to 111,016). / Excess USD 15,000; fine USD 3,000 to 6,000.Ley Aduanera, DOF 15 December 1995 (Chamber of Deputies consolidated text, last reform DOF 19 November 2025), Arts. 9, 184, section VIII, and 185, section VII, 1995-12-15 official text · verified 2026-10-26

Rule	Threshold	2026 pesos	About USD	Source
No cash for real estate	8,025 UMA	941,412.75	50,880	LFPIORPI art. 32, section I
No cash for vehicles, jewelry, art, gaming, armoring, shares	3,210 UMA	376,565.10	20,352	LFPIORPI art. 32, sections II to VI
No cash for leases of real estate, vehicles or armoring	3,210 UMA a month	376,565.10 a month	20,352	LFPIORPI art. 32, section VII
Bank reports cash deposits	Over MXN 15,000 a month per bank	15,000	811	LISR art. 55, section IV
Expense deductible only if paid electronically	Over MXN 2,000	2,000	108	LISR art. 27, section III
Declare cash at the border	Over USD 10,000	185,026	10,000	Ley Aduanera art. 9

Cash limits in Mexico, 2026 values at MXN 117.31 per UMA and MXN 18.5026 per USD, verified 26 October 2026.

Worked example

A foreign investor's Mexican company buys an industrial plot for MXN 9,251,300 (about USD 500,000) and a used truck for MXN 400,000 (about USD 21,619).
Both are above the cash thresholds (8,025 UMA, MXN 941,412.75, for real estate and 3,210 UMA, MXN 376,565.10, for vehicles), so both must be paid by transfer or cheque; dollars in cash are equally banned (LFPIORPI art. 32).
For deals of 8,025 UMA or more, the notary recording the land purchase must identify in the deed how the price was paid (LFPIORPI art. 33); a cash payment would expose both parties to a fine of at least MXN 1,173,100 (LFPIORPI art. 54).
The company pays its MXN 25,000 monthly security contractor by transfer, keeping the deduction (LISR art. 27, section III).
A director who visits with USD 9,500 in cash plus a USD 1,000 customer cheque declares the USD 10,500 at customs (Ley Aduanera art. 9).

Step by step

1. Pay all real estate, vehicle and share deals by bank transfer from an account in the company's name, keeping the transfer receipt for the notary.
2. Check the UMA value on the payment date (MXN 117.31 from 1 February 2026) before relying on any threshold.
3. Set a policy that supplier payments above MXN 2,000 go by transfer, nominative cheque or card, and that fuel is never paid in cash.
4. If the business receives cash (retail, hospitality), reconcile monthly cash deposits with declared income, since the bank reports deposits above MXN 15,000 to SAT.
5. If the business is a vulnerable activity under the anti money laundering law, register and file notices, a separate regime covered on the regulation page.

Common traps

Thinking the ban applies only to pesos. LFPIORPI art. 32 covers coins and banknotes in pesos or foreign currency and precious metals.
Depositing cash at a bank for the seller. Payment in cash through a financial entity is still banned (LFPIORPI art. 32, first paragraph).
Splitting rent to dodge the threshold. For leases, the threshold of 3,210 UMA is measured monthly (LFPIORPI art. 32, section VII).
Reading the fine as a fixed amount. The fine is the higher of 10,000 to 65,000 UMA or 10 to 100 percent of the deal (LFPIORPI art. 54, section III), so on large deals it can reach the full value.
Paying in cash and keeping the invoice. Without electronic payment above MXN 2,000 the expense is not deductible (LISR art. 27, section III).

Sources

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