Mexico Offers Income Tax Deduction for School Fees

Mexican President Felipe Calderón has signed a decree permitting income tax deductions for school fees. This measure is designed to help Mexican families cover the cost of education, which will enable them to increase their opportunities and continue to reactivate the economy. Through this action, Federal Government confirms its commitment to education as the best means of boosting Mexico’s development and increasing opportunities for Mexicans.

As a result of the tax incentive decree signed today, individuals will be able to deduct pre-school, elementary and junior and high school fees from their income tax. This measure will be applicable to school fees for the tax contributor and his spouse, children and parents.

In order to gain access to the benefits of fee deductions, these payments must be made by electronic transfer or order check. Subsequently, as with other Income Tax deductions (such as medical expense deductions), taxpayers will be able to deduct school fee payments in their annual declarations. In order to preserve equity, a maximum limit has been set for the deduction in keeping with Federal Government spending per student in these education levels, according to the following chart:

Annual Deduction Limit by Education Level
Education Level           Annual Deduction Limit
Pre-school                 $14,200.00
Elementary               $12,900.00
Junior High               $19,900.00
Technical Professional     $17,100.00
Senior high or equivalent   $24,500.00

This incentive will be covered by savings made in federal public education and will in no way affect the main education programs.

Through this measure, Federal Government confirms its commitment to families’ economies and the education of all Mexicans.