MEXICO · ECONOMY
Key Facts
- —What is happening Mexico’s Senate passed the 2027 revenue law on Tuesday, 27 October 2026, by 75 votes to 34.
- —Why it matters The law sets Mexico’s 2027 income and borrowing limits, and exempts carmakers from a new tax-deduction cap.
- —The numbers Income of 10.6 trillion pesos (US$570 billion); borrowing capped at 1.7 trillion pesos (US$91 billion).
- —Who is who Morena, the governing party, and its allies backed it; the PAN, PRI and MC opposed it.
- —What to watch Deputies must vote again on the income tax change; the spending bill is due by 15 November.
- —Power Index Mexico ranks 2nd of 14 in The Rio Times Latin America Power Index, with 71.4 points (October 2026 edition).
- —What it means for you Foreign visitors face a higher entry fee, 1,158 pesos (US$62) instead of 983 pesos (US$53).
Mexico’s Senate has passed next year’s revenue law. It adds no new taxes but caps borrowing and gives carmakers a tax break.
Mexico’s Senate approved the country’s 2027 revenue law on Tuesday, 27 October 2026, by 75 votes to 34. The law plans government income of 10.6 trillion pesos (about US$570 billion).
The Senate finished four days before its 31 October deadline. The bill now goes to President Claudia Sheinbaum for publication in the official gazette.
Who Is Who in Plain English
- Revenue law (Ley de Ingresos): the yearly law that sets what the federal government expects to collect and may borrow; spending is a separate bill.
- Senate and Chamber of Deputies: the two houses of Mexico’s Congress; deputies passed the revenue law first, on 15 October.
- Morena: Sheinbaum’s governing party; with its allies, the Labor Party (PT) and the Green Party (PVEM), it holds a majority.
- PAN, PRI and Citizens’ Movement (MC): the opposition parties that voted against the law.
- ISR: the Mexican income tax law (Impuesto sobre la Renta), which the Senate changed.
What the Law Sets for 2027
The law counts on 10.6 trillion pesos (about US$570 billion) of income in 2027. Taxes make up about 6.26 trillion pesos (US$335 billion) of that.
It lets the government borrow up to 1.7 trillion pesos (about US$91 billion) at home. The version the deputies approved also allows borrowing abroad of up to US$13.5 billion, and the Senate left the law unchanged.
Lawmakers said the law adds no new taxes. It assumes economic growth of 1.5% to 2.5% in 2027.
The law also drops a cap of 300 million pesos (about US$16 million) on waiving fines for firms that settle overdue taxes. That lets very large taxpayers use the relief.
How the Senate Voted
Morena and its allies backed the law. The vote was 79 to 34 in general and 75 to 34 on the detailed articles.
The PAN, the PRI and Citizens’ Movement voted against. PAN senator Gina Campuzano questioned what results the borrowing has delivered.
PRI coordinator Manuel Añorve called the package a promissory note (pagaré) that Morena wants Mexicans to pay. Morena’s Manuel Huerta replied that 1.7 trillion pesos (US$91 billion) is a borrowing limit, not an amount the government must borrow.
The Carmaker Tax Break and Why One Law Goes Back
The Senate also changed a separate law, the income tax (ISR) reform. It exempts vehicle assembly and manufacturing companies from a new limit on tax deductions and losses.
Most reports say fuel stations and fuel distributors are exempt too. Morena’s Senate leader Ignacio Mier and Economy Committee chair Emmanuel Reyes proposed the change.
Because the Senate altered the text, the Chamber of Deputies must vote on the income tax reform again. The revenue law and the duties law do not need another vote.
The Senate also approved the Federal Duties Law, which sets government fees. It raises the fee foreign visitors pay to enter Mexico from 983 pesos (about US$53) to 1,158 pesos (about US$62).
What It Means for You
Travelers will pay about US$9 more to enter Mexico, a small rise next to most trip costs. The reports reviewed do not give the date the new fee starts.
Carmakers with plants in Mexico, a major supplier of vehicles to the United States, would avoid a new squeeze on deductions. The deputies still have to confirm the exemption.
Investors get a plan built on 1.5% to 2.5% growth, with the peso at 18.67 per dollar on 28 October. Borrowing is the pressure point, since opposition senators called the 1.7 trillion peso (US$91 billion) cap excessive.
Background is in the guide to US-Mexico relations, the report on how the deputies passed the law and the 2027 budget outlook. The large-firm tax reform, the guide to Mexico’s economy and the Mexico news hub add context.
What Is Not Known
Reports differ on whether fuel stations are exempt. They also differ on how a 50 million peso (about US$2.7 million) threshold in the deduction rule works.
The Senate’s own communiqué and gazette could not be opened, so the figures come from Mexican press accounts that agree. Single-source details, such as peso and inflation assumptions, were left out.
What Comes Next
The revenue law and the duties law go to the president for publication in the official gazette. The Chamber of Deputies must now vote again on the income tax reform.
The 2027 spending bill is next. Deputies are expected to take it up in committee in early November, with a floor vote by 15 November.
Frequently Asked Questions
What did Mexico’s Senate approve?
The 2027 revenue law, by 75 votes to 34 on Tuesday, 27 October 2026, and the Federal Duties Law. It also changed the income tax law.
How much will Mexico collect and borrow in 2027?
The law plans income of 10.6 trillion pesos (about US$570 billion). Domestic borrowing is capped at 1.7 trillion pesos (about US$91 billion).
Does the law add new taxes?
Lawmakers said it adds none. It does tighten some business deductions, with an exemption for carmakers.
Why does one law go back to the deputies?
The Senate changed the income tax reform to exempt carmakers from a new deduction limit. A changed text must return to the chamber that passed it first.
Will foreign visitors pay more?
Yes, the entry fee for foreign visitors rises from 983 to 1,158 pesos (about US$53 to US$62). The start date was not given in the reports reviewed.
Sources: Senate of the Republic of Mexico; Chamber of Deputies of Mexico; Sin Embargo, 27 October; La Razón, 28 October; MVS Noticias, 27 October; NX Noticias, 27 October; SDP Noticias, 27 October; Excélsior, 15 October; exchange rate 18.67 pesos per US dollar, open.er-api.com, 28 October (all accessed 28 October 2026).
This article was produced by The Rio Times’ automated newsroom system. How we use AI · Report an error · Editorial responsibility: Matthias Camenzind, Editor-in-Chief