Natural persons must present their annual declaration for the financial year 2025 in April. It is a good time to verify which personal expenses and tax incentives can be deducted with the aim of reducing the tax burden or improving the favorable balance.
To make these deductions valid, the Tax Administration Service (SAT) remembers that it is necessary have the electronic invoice corresponding to each service or productcheck that the Federal Taxpayer Registry (RFC) is correct and have carried out the payment by electronic transfera, credit or debit card or nominative check, in the name of the person who will make the deduction.
Javier Cornelio Román, specialist from the General Directorate of Taxpayer Guidance and Advice by Remote Means of the Taxpayer Defense Attorney’s Office (Prodecon), lists which are the personal deductions and tax incentives that tax payers can present in their 2025 annual return.
1.Medical fees. Included are payments for medical and dental fees and for professional services in psychology and nutrition; hospital, nursing, analysis, clinical studies or prosthesis expenses; purchase or rental of rehabilitation devices for patients resulting from disabilities, as well as medicines that are included in the documents issued by hospital institutions.
It applies to the taxpayer, his or her spouse or the person with whom he or she lives in cohabitation, as well as to his or her ascendants and descendants in a straight line, as long as (with the exception of the tax payer) they do not receive income in the year in question in an amount equal to or greater than the Unit of Measurement and Update (UMA) raised per year, which in 2025 is 41,273.52 pesos.
Services can be paid by personal check and electronic fund transfersfrom accounts in the taxpayer’s name, or through a credit, debit or service card. The operation must be covered by the Digital Tax Receipt over the Internet (CFDI) corresponding.
2.Funeral expenses. It applies to the taxpayer, his or her spouse or the person with whom he or she lives in common law, as well as to his direct ascendants and descendants.
Income (outside the taxpayer) must not exceed a high UMA per year (41,273.52 pesos). The operation must be covered by a CFDI and it is deductible when the service is used and not when a future plan is purchased. In this case, the payment method may be indistinct.
3. Donations. Considers non-onerous or non-remunerative donations made to the Federation, federal entities, municipalities and decentralized organizations, as well as institutions authorized by the SAT.
The deduction is limited to 7% of cumulative income of the immediately preceding financial year. For example, if in 2024 a person earned income of 100,000 pesos, in 2025 they can only deduct up to 7,000 pesos.
4. Real interest for mortgage loans. Those derived from the acquisition of housing, contracted with financial system instruments. The institution will issue the tax receipt indicating the amount of the actual deductible interest.
The total amount of credits granted by diEach property must not exceed 750,000 Investment Units (Udis), around 6.5 million pesos.
5. Voluntary contributions. These are those made directly to the complementary retirement contributions account, as well as contributions made to plans. Personal Retirement (PPR) and voluntary contributions made to the corresponding subaccount.
The deduction will be up to 10% of cumulative income for the yearthese contributions will not exceed the equivalent of 5 UMAs per year.
For example, if in the year a person receives income of 656,269.73 pesos, the limit of deduction is 65,626.97 pesos and the five UMAs amount to 206,480.50 pesos.
6. Major medical expenses. It applies to the taxpayer, his or her spouse or the person with whom he or she lives in common law, as well as to his direct ascendants and descendants.
7. Mandatory school transportation. Applies to descendants in a straight line. The tax receipt must expressly separate the corresponding amount. Services can be paid by personal check and electronic fund transfers, from accounts in the taxpayer’s name or by credit, debit or service card.
What fiscal incentives exist?
According to the Prodecon representative, the Income Tax Law also provides for other types of reductions in the taxpayer’s tax base and it is a stimulus for the PPR. The deductions cannot exceed 152,000 pesos. This amount is independent of personal ones.
There is also fiscal stimulus tuition from basic to upper secondary level. It applies to the taxpayer, his or her spouse, as well as his direct ascendants and descendants.
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