Countries › Mexico › Guide › 6. Taxes › Mexico excise tax (IEPS): alcohol, tobacco, fuels, sweetened drinks, snack foods, gambling and telecom, with the 2026 changes
Mexico excise tax (IEPS): alcohol, tobacco, fuels, sweetened drinks, snack foods, gambling and telecom, with the 2026 changes
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Last verified: 2026-10-26 · Status: Changing
The special tax on production and services (IEPS) applies on top of VAT to the sale or import of alcohol and beer (26.5 to 53 percent), tobacco (200 percent for cigarettes plus a per cigarette amount), energy drinks (25 percent), high calorie snack foods (8 percent), sweetened and flavored drinks (per liter) and automotive fuels (per liter), and to services such as betting and gaming (50 percent) and telecommunications (3 percent). The 2026 reform, in force 1 January 2026, raised tobacco rates, introduced a per liter charge on drinks with non caloric sweeteners, added 8 percent on violent video games and raised gambling to 50 percent. IEPS is paid monthly by the 17th; it is generally not creditable, except for IEPS paid on goods resold in the same form in listed categories.
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. Mexican tax law uses the Banxico FIX for foreign currency amounts, which differs slightly. Conversions are for orientation only.
Key facts
| Excise rate on alcoholic beverages and beer up to 14 degrees | 26.5 %LIEPS art. 2o., section I, paragraph A), as of 2026-10-26 · in force |
|---|---|
| Excise rate on beverages above 20 degrees of alcohol | 53 %LIEPS art. 2o., section I, paragraph A), as of 2026-10-26 · in force |
| Excise rate on cigarettes | 200 %LIEPS art. 2o., section I, paragraph C), as of 2026-10-26 · in force |
| Specific excise per cigarette (2026) | 0.8516 MXNDecree DOF 7 November 2025, transitory art. Segundo, as of 2026-10-26 · in force |
| Excise on flavored drinks with added sugars | 3.0818 MXN per literLIEPS art. 2o., section I, paragraph G), as of 2026-10-26 · in force |
| Excise on flavored drinks with non caloric sweeteners (from 2026) | 1.5 MXN per literLIEPS art. 2o., section I, paragraph G), as of 2026-10-26 · in force |
| Excise on high calorie non basic foods (275 kcal or more per 100 g) | 8 %LIEPS art. 2o., section I, paragraph J), as of 2026-10-26 · in force |
| Excise on energy drinks | 25 %LIEPS art. 2o., section I, paragraph F), as of 2026-10-26 · in force |
| Excise on gasoline under 91 octane (2026, before stimulus) | 6.7001 MXN per literLIEPS art. 2o., section I, paragraph D); Acuerdo DOF 22 December 2025, as of 2026-10-26 · in force |
| Excise on diesel (2026, before stimulus) | 7.3634 MXN per literLIEPS art. 2o., section I, paragraph D); Acuerdo DOF 22 December 2025, as of 2026-10-26 · in force |
| Excise on betting and gaming | 50 %LIEPS art. 2o., section II, paragraph B), as of 2026-10-26 · in force |
The rule
1. Alcohol, energy drinks and snack foods. Sales or imports of alcoholic beverages and beer bear 26.5 percent up to 14 degrees of alcohol, 30 percent above 14 and up to 20 degrees, and 53 percent above 20 degrees; alcohol, denatured alcohol and uncrystallizable molasses 50 percent; energy drinks and their concentrates 25 percent; and listed non basic foods (snacks, confectionery, chocolate and cocoa products, flans and puddings, fruit sweets, peanut and hazelnut butters, milk sweets, cereal based prepared foods and ice creams) with 275 kilocalories or more per 100 grams 8 percent.
Cost to do it: The rate on the taxable value, before VAT.
Example: A brewer sells MXN 10,000,000 of beer (under 14 degrees) to retailers: IEPS of MXN 2,650,000 is added before VAT. / Sales of about USD 540,465; IEPS of about USD 143,223 at 18.5026.Ley del Impuesto Especial sobre Producción y Servicios (LIEPS), DOF 30 December 1980 (Chamber of Deputies consolidated text, last reform DOF 7 November 2025), Art. 2o., section I, paragraphs A), B), F), J), 1980-12-30 official text · verified 2026-10-26
Cost to do it: The rate on the taxable value, before VAT.
Example: A brewer sells MXN 10,000,000 of beer (under 14 degrees) to retailers: IEPS of MXN 2,650,000 is added before VAT. / Sales of about USD 540,465; IEPS of about USD 143,223 at 18.5026.Ley del Impuesto Especial sobre Producción y Servicios (LIEPS), DOF 30 December 1980 (Chamber of Deputies consolidated text, last reform DOF 7 November 2025), Art. 2o., section I, paragraphs A), B), F), J), 1980-12-30 official text · verified 2026-10-26
2. Tobacco and nicotine products. Cigarettes and other manufactured tobacco bear 200 percent, hand made cigars 32 percent, and other products containing nicotine 100 percent, plus a fixed amount per cigarette (or per 0.75 grams of tobacco, or per 8 milligrams of nicotine for nicotine products). The per cigarette amount is MXN 0.8516 in 2026, MXN 0.9197 in 2027, MXN 0.9932 in 2028 and MXN 1.0726 in 2029, reaching MXN 1.1584 from 1 January 2030.
Cost to do it: 200 percent of value plus MXN 0.8516 per cigarette in 2026.
Example: A pack of 20 cigarettes with a taxable value of MXN 30 bears MXN 60 of ad valorem IEPS plus MXN 17.03 (20 x 0.8516) of specific IEPS in 2026, before VAT. / Ad valorem IEPS of about USD 3.24 plus specific IEPS of about USD 0.92 per pack at 18.5026.Ley del Impuesto Especial sobre Producción y Servicios (LIEPS), DOF 30 December 1980 (Chamber of Deputies consolidated text, last reform DOF 7 November 2025), Art. 2o., section I, paragraph C); transitory art. Segundo of the decree of DOF 7 November 2025, 1980-12-30 official text · verified 2026-10-26 · changed: Decree published in the DOF on 7 November 2025 (in force 1 January 2026) set the cigarette and manufactured tobacco rate at 200 percent, the nicotine products rate at 100 percent, and a per cigarette amount phased from MXN 0.8516 in 2026 to MXN 1.1584 in 2030.
Cost to do it: 200 percent of value plus MXN 0.8516 per cigarette in 2026.
Example: A pack of 20 cigarettes with a taxable value of MXN 30 bears MXN 60 of ad valorem IEPS plus MXN 17.03 (20 x 0.8516) of specific IEPS in 2026, before VAT. / Ad valorem IEPS of about USD 3.24 plus specific IEPS of about USD 0.92 per pack at 18.5026.Ley del Impuesto Especial sobre Producción y Servicios (LIEPS), DOF 30 December 1980 (Chamber of Deputies consolidated text, last reform DOF 7 November 2025), Art. 2o., section I, paragraph C); transitory art. Segundo of the decree of DOF 7 November 2025, 1980-12-30 official text · verified 2026-10-26 · changed: Decree published in the DOF on 7 November 2025 (in force 1 January 2026) set the cigarette and manufactured tobacco rate at 200 percent, the nicotine products rate at 100 percent, and a per cigarette amount phased from MXN 0.8516 in 2026 to MXN 1.1584 in 2030.
3. Sweetened and flavored drinks. Flavored drinks and their concentrates, powders, syrups and extracts that contain added sugars bear MXN 3.0818 per liter, and those that contain added non caloric sweeteners MXN 1.5000 per liter; for concentrates the charge is based on the liters of drink they yield. The amounts are restated for inflation each January.
Cost to do it: MXN 3.0818 per liter with sugar or MXN 1.50 per liter with sweeteners, before VAT.
Example: A bottler sells 1,000,000 liters of sugared soda: IEPS is MXN 3,081,800. If the same volume were sweetened with non caloric sweeteners, IEPS would be MXN 1,500,000. / IEPS of about USD 166,560 or USD 81,070 at 18.5026.Ley del Impuesto Especial sobre Producción y Servicios (LIEPS), DOF 30 December 1980 (Chamber of Deputies consolidated text, last reform DOF 7 November 2025), Art. 2o., section I, paragraph G), 1980-12-30 official text · verified 2026-10-26 · changed: Decree published in the DOF on 7 November 2025 (in force 1 January 2026) reformed this paragraph; the consolidated text sets MXN 3.0818 per liter for added sugars and a new MXN 1.5000 per liter for added sweeteners.
Cost to do it: MXN 3.0818 per liter with sugar or MXN 1.50 per liter with sweeteners, before VAT.
Example: A bottler sells 1,000,000 liters of sugared soda: IEPS is MXN 3,081,800. If the same volume were sweetened with non caloric sweeteners, IEPS would be MXN 1,500,000. / IEPS of about USD 166,560 or USD 81,070 at 18.5026.Ley del Impuesto Especial sobre Producción y Servicios (LIEPS), DOF 30 December 1980 (Chamber of Deputies consolidated text, last reform DOF 7 November 2025), Art. 2o., section I, paragraph G), 1980-12-30 official text · verified 2026-10-26 · changed: Decree published in the DOF on 7 November 2025 (in force 1 January 2026) reformed this paragraph; the consolidated text sets MXN 3.0818 per liter for added sugars and a new MXN 1.5000 per liter for added sweeteners.
4. Automotive fuels. Fossil fuels bear fixed amounts per liter, restated each January: for 2026, MXN 6.7001 per liter for gasoline under 91 octane, MXN 5.6579 for gasoline of 91 octane or more and MXN 7.3634 for diesel, after the inflation factor of 1.0379 published on 22 December 2025. The Executive can grant fiscal stimuli that reduce the effective fuel amounts; the decree of 31 December 2025 extended the fuel stimulus decrees through 31 December 2026.
Cost to do it: Per liter amounts that can be reduced by the stimulus in force at the time of sale.
Example: A logistics company buys 100,000 liters of diesel in a month; the statutory IEPS embedded in the price is MXN 736,340 before any stimulus. / Statutory IEPS of about USD 39,797 at 18.5026.Ley del Impuesto Especial sobre Producción y Servicios (LIEPS), DOF 30 December 1980 (Chamber of Deputies consolidated text, last reform DOF 7 November 2025), Art. 2o., section I, paragraph D); Acuerdo DOF 22 December 2025, 1980-12-30 official text · verified 2026-10-26 · changed: Acuerdo published in the DOF on 22 December 2025 updated the 2026 fuel amounts with an inflation factor of 1.0379.
Cost to do it: Per liter amounts that can be reduced by the stimulus in force at the time of sale.
Example: A logistics company buys 100,000 liters of diesel in a month; the statutory IEPS embedded in the price is MXN 736,340 before any stimulus. / Statutory IEPS of about USD 39,797 at 18.5026.Ley del Impuesto Especial sobre Producción y Servicios (LIEPS), DOF 30 December 1980 (Chamber of Deputies consolidated text, last reform DOF 7 November 2025), Art. 2o., section I, paragraph D); Acuerdo DOF 22 December 2025, 1980-12-30 official text · verified 2026-10-26 · changed: Acuerdo published in the DOF on 22 December 2025 updated the 2026 fuel amounts with an inflation factor of 1.0379.
5. Services: gaming, telecom and video games. Betting and gaming that require a permit, including games of skill on machines with electronic images, bear 50 percent, also applicable to online betting offered by foreign residents through digital means; services provided in Mexico through public telecommunications networks bear 3 percent (with exceptions such as internet access); and, from 2026, access to or downloads of video games with violent, extreme or adult content not suitable for minors bear 8 percent.
Cost to do it: 50, 3 or 8 percent of the value of the service.
Example: A casino operator has MXN 20,000,000 of bets, net of prizes, in a month as the taxable value under the law: IEPS at 50 percent is MXN 10,000,000. / Taxable value of about USD 1,080,929; IEPS of about USD 540,465 at 18.5026.Ley del Impuesto Especial sobre Producción y Servicios (LIEPS), DOF 30 December 1980 (Chamber of Deputies consolidated text, last reform DOF 7 November 2025), Art. 2o., section II, paragraphs B), C) and D), 1980-12-30 official text · verified 2026-10-26 · changed: Decree published in the DOF on 7 November 2025 (in force 1 January 2026) reformed the betting and gaming paragraph, now at 50 percent in the consolidated text, and added the 8 percent rate on violent, extreme or adult video games.
Cost to do it: 50, 3 or 8 percent of the value of the service.
Example: A casino operator has MXN 20,000,000 of bets, net of prizes, in a month as the taxable value under the law: IEPS at 50 percent is MXN 10,000,000. / Taxable value of about USD 1,080,929; IEPS of about USD 540,465 at 18.5026.Ley del Impuesto Especial sobre Producción y Servicios (LIEPS), DOF 30 December 1980 (Chamber of Deputies consolidated text, last reform DOF 7 November 2025), Art. 2o., section II, paragraphs B), C) and D), 1980-12-30 official text · verified 2026-10-26 · changed: Decree published in the DOF on 7 November 2025 (in force 1 January 2026) reformed the betting and gaming paragraph, now at 50 percent in the consolidated text, and added the 8 percent rate on violent, extreme or adult video games.
6. Payment and limited credit. IEPS is calculated monthly and paid by the 17th of the following month (import IEPS is paid with the import taxes), on amounts actually collected. It is generally not creditable; credit is allowed only for IEPS charged on purchases, or paid on imports, of listed goods (including alcohol and beer, fuels, energy drinks, flavored drinks and snack foods, and on imports also tobacco) that the taxpayer resells, under the conditions of the law.
Cost to do it: Non creditable IEPS is a cost; creditable IEPS reduces the monthly payment.
Example: A beer distributor buys beer with MXN 2,650,000 of IEPS charged and resells it with MXN 3,000,000 of IEPS; it pays the MXN 350,000 difference by the 17th. / Net IEPS of about USD 18,916 at 18.5026.Ley del Impuesto Especial sobre Producción y Servicios (LIEPS), DOF 30 December 1980 (Chamber of Deputies consolidated text, last reform DOF 7 November 2025), Arts. 4o. and 5o., 1980-12-30 official text · verified 2026-10-26
Cost to do it: Non creditable IEPS is a cost; creditable IEPS reduces the monthly payment.
Example: A beer distributor buys beer with MXN 2,650,000 of IEPS charged and resells it with MXN 3,000,000 of IEPS; it pays the MXN 350,000 difference by the 17th. / Net IEPS of about USD 18,916 at 18.5026.Ley del Impuesto Especial sobre Producción y Servicios (LIEPS), DOF 30 December 1980 (Chamber of Deputies consolidated text, last reform DOF 7 November 2025), Arts. 4o. and 5o., 1980-12-30 official text · verified 2026-10-26
| Product or service | 2026 rate or amount | Rule |
|---|---|---|
| Beer and beverages up to 14 degrees | 26.5 percent | Art. 2o., I, A) |
| Beverages over 14 and up to 20 degrees | 30 percent | Art. 2o., I, A) |
| Beverages over 20 degrees | 53 percent | Art. 2o., I, A) |
| Cigarettes | 200 percent plus MXN 0.8516 per cigarette | Art. 2o., I, C); 2025 decree transitory |
| Hand made cigars | 32 percent | Art. 2o., I, C) |
| Other nicotine products | 100 percent plus specific amount | Art. 2o., I, C) |
| Energy drinks | 25 percent | Art. 2o., I, F) |
| Flavored drinks with added sugar | MXN 3.0818 per liter | Art. 2o., I, G) |
| Flavored drinks with non caloric sweeteners | MXN 1.50 per liter | Art. 2o., I, G) |
| Snack foods of 275 kcal or more per 100 g | 8 percent | Art. 2o., I, J) |
| Gasoline under 91 octane / 91 or more / diesel | MXN 6.7001 / 5.6579 / 7.3634 per liter before stimulus | Art. 2o., I, D) |
| Betting and gaming | 50 percent | Art. 2o., II, B) |
| Telecom network services | 3 percent | Art. 2o., II, C) |
| Violent, extreme or adult video games | 8 percent | Art. 2o., I, K) and II, D) |
Main IEPS rates and amounts for 2026, verified 26 October 2026 against the consolidated LIEPS
Worked example
- A beverage company sells 10,000,000 liters a year of a flavored drink in Mexico. With sugar, IEPS is MXN 30,818,000 a year (about USD 1.67 million); reformulated with non caloric sweeteners it would pay MXN 15,000,000 (about USD 810,697) from 2026, since such drinks now bear MXN 1.50 per liter.
- VAT at 16 percent applies on the price including IEPS. The company pays IEPS monthly by the 17th and can credit IEPS paid on imported concentrates it uses for drinks it sells, within the limits of art. 4o.
Step by step
- 1. Check whether any product or service falls in LIEPS art. 2o. and whether the rate is ad valorem, per unit or both.
- 2. Register IEPS obligations in the RFC and configure invoicing to show IEPS where the law requires it.
- 3. File and pay monthly by the 17th, crediting only the IEPS allowed by art. 4o.
- 4. For tobacco and fuels, update per unit amounts each January (and weekly fuel stimuli where applicable).
- 5. Recheck rates every January; IEPS was reformed for 2026 and amounts are restated annually.
Common traps
- Assuming IEPS is creditable like VAT. It is only creditable for listed goods resold under the conditions of art. 4o.
- Using the 2030 tobacco amount. The per cigarette amount phases in from MXN 0.8516 in 2026 to MXN 1.1584 in 2030 (2025 decree transitory art. Segundo).
- Reformulating to sweeteners expecting zero tax. From 2026 drinks with non caloric sweeteners bear MXN 1.50 per liter (art. 2o., I, G).
- Forgetting IEPS on imports. Most listed goods bear IEPS at import as well as on sale (art. 2o., section I).
Sources
- Ley del Impuesto Especial sobre Producción y Servicios, consolidated text, Chamber of Deputies
- Unofficial copy consulted (mley.mx mirror, not an official source) of the Ley del Impuesto Especial sobre Producción y Servicios, Chamber of Deputies consolidated text, last reform DOF 7 November 2025
- Decree of 31 December 2025 extending border and fuel stimulus decrees, DOF evening edition (copy hosted by SAT, consulted)
- US Federal Reserve H.10 Mexican peso to US dollar rate, FRED series DEXMXUS
Related pages
- taxes/overview
- taxes/vat
- taxes/customs-duties
- taxes/digital-services
- sectors/overview
- /country/mexico/
- Live dashboard
Related: Mexico country profile · live dashboard · central bank and release calendar · our posts on X · where Argentina is involved, see The Argentine Thread guide