# Mexico federal tax revenue shortfalls

> Live situation record from CLSTR: https://clstr.news/situations/mexico-federal-tax-revenue-shortfalls
> Updated: 2026-08-27T15:23:00.000Z. Sources: 9. Developments: 2.

Mexico is experiencing significant fluctuations in federal tax revenue, specifically regarding Income Tax (ISR). In early August, Federal Deputy Rocío González Alonso reported that a 9.8% decline in ISR collection has led to reduced federal funding for 23 Mexican states and municipalities. She warned that these budget constraints threaten essential services, including healthcare, public safety, infrastructure, and social programs.

By late August, preliminary data from the Servicio de Administración Tributaria (SAT) confirmed that while total federal tax revenue saw a nominal increase of 128.5 billion pesos between January and July 2026 compared to the previous year, it fell 95.8 billion pesos short of targets set by the Secretaría de Hacienda. This shortfall was driven largely by the ISR, which missed its goal by 118.5 billion pesos, and the Special Tax on Production and Services (IEPS), which saw a deficit of 36.8 billion pesos. Conversely, Value Added Tax (IVA) exceeded projections by 107.7 billion pesos.

Further analysis of the January to July 2026 period indicates that the ISR experienced a real annual decrease of 6%, marking its largest drop since 2010. This decline has been attributed to lower payments from corporations. While the ISR shortfall remains a primary challenge, the impact has been partially offset by the strong performance of the IVA and improved customs oversight.

## Timeline

### 2026-08-27: Peru and Mexico manage fiscal shifts and budget planning

Peru is advancing its 2027 budget proposals with projected deficit reductions, while Mexico reports a significant real-term decline in income tax revenue despite growth in other tax sectors.

9 sources. https://clstr.news/cluster/mexico-tax-revenue-falls-short-of-targets-despite-annual-growth

### 2026-08-07: Mexico federal funding cuts impact 23 states due to tax revenue drop

Mexican Deputy Rocío González Alonso warns that a 9.8% drop in ISR tax collection has reduced federal funding for 23 states, impacting healthcare, infrastructure, and public safety.

2 sources. https://clstr.news/cluster/mexico-federal-funding-cuts-impact-23-states-due-to-tax-revenue-drop

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Cite as: Mexico federal tax revenue shortfalls. CLSTR, https://clstr.news/situations/mexico-federal-tax-revenue-shortfalls