Car Expenses You Can Deduct from Taxes in Mexico

MEXICO – Simply owning a car and having an economic activity is not enough for the Tax Administration Service (SAT) to allow tax deductions in your next annual declaration.

For the tax authority to recognize these expenses as deductible, they must be indispensable for your professional activity, according to what was published by El Universal. This means that if your work depends on vehicle use, there is a possibility of reducing your tax burden.

Key Requirements Before Deducting

Before reviewing what you can include, remember these three basic pillars:

1. Digital tax receipt (CFDI) for each expense
2. Payment through electronic means: transfer, debit/credit card, or check—nothing in cash
3. Amount per transaction not exceeding $2,000 pesos, except in specific cases like vehicle acquisition

Once these points are met, these are the categories that the SAT accepts:

Gasoline

• Fuel: Per day, not per invoice
• Gasoline or diesel vehicles: Up to $200 daily
• Hybrid and electric vehicles: Up to $285 daily

Maintenance and Services

These are included:

• Oil changes
• Spare parts
• Tires
• Tune-ups and balancing
• General services at workshops (always with CFDI)

Mandatory Procedures

Vehicle ownership tax, emissions verification, and registration renewal are also deductible, provided they are paid with traceable means and invoiced.

Vehicle Insurance

Yes, car insurance can be deductible, but only if the vehicle is used to generate income.

Car Purchase: An Investment with Limits

Purchasing a car is considered an investment, but the Income Tax Law (ISR) sets a cap:

• $175,000 pesos for conventional vehicles
• $250,000 pesos for hybrid or electric models

Key Dates for 2026

The SAT has already released the calendar for the 2025 annual declaration:

1. Legal entities: from January 1 to March 31, 2026
2. Individuals: until April 30, 2026