Decision Engine — Tool 06
State-by-State Incentives Comparison.
Manufacturing incentives in Mexico are negotiated at the state level — not federal. v1 covers the 10 states that account for the bulk of US-to-Mexico FDI: ISN payroll tax rates and abatement programs anchored in each state's Ley de Hacienda, plus the surrounding training, infrastructure, and fast-track permitting context. Every cell carries a primary-source citation.
Coverage
10 states · top FDI corridors
Northwest, Northeast, Bajío, Central. Remaining 22 states are 'request your state' until v2.
Sources
State Leyes de Hacienda + EY Matriz ISN 2025
ISN article-level citations from EY's 2025 compilation. Surrounding cells from state SEDECO/SEDESU portals.
Refresh
Annual · Reviewed: 2026-05-01
Next scheduled review: 2027-01-31 (Q1 budget-cycle window). Open access — no qualification required.
Compare states (10 of 10 selected)
Incentive type
Chihuahua
northwest
3.0%
Impuesto Sobre Nóminas
Abatements: Tiered SMB stimulus: 1–10 employees = 20% monthly reduction; 11–30 employees = 10%; 31–50 employees = 5%. Annual application by Jan 31.
Art. 9° y 10° Ley de Ingresos del Estado de Chihuahua 2025; Ley de Hacienda del Estado de Chihuahua
Primary source →Verified 2026-05-01
Nuevo León
northeast
3.0%
Impuesto Sobre Nóminas
Abatements: Disability workers fully exempt (100%). Non-profits, religious associations, and educational institutions exempt. Cultural patron credit up to 85% for authorized literary/artistic support.
Art. 159 Bis y 160 Ley de Hacienda del Estado de Nuevo León
Primary source →Verified 2026-05-01
Coahuila
northeast
3.0%
Impuesto Sobre Nóminas
Abatements: Tiered abatement for hiring older workers (60+) or persons with disabilities: 20% reduction at 8–10% of workforce; 25% at 10–14%; 30% at 14–20%; 50% above 20%. Wages of these workers themselves are fully exempt.
Art. 29, 30 y 31 Ley de Hacienda para el Estado de Coahuila
Primary source →Verified 2026-05-01
Sonora
northwest
3.0%
Impuesto Sobre Nóminas
Abatements: 13.8% reduction of ISN for businesses generating new jobs in last 12 months OR ≥5% increase in remunerations. New companies in Sonora can receive up to 100% IERTP exemption for up to 3 years. 100% reduction for disabled workers.
Art. 218 Bis, 218 Bis 1, 218 Bis 2, 218 Bis 3 Ley de Hacienda del Estado de Sonora
Primary source →Verified 2026-05-01
Baja California
northwest
4.25%
Impuesto Sobre Remuneraciones al Trabajo Personal
Abatements: Investment-project exemptions per Ley de Fomento a la Competitividad y Desarrollo Económico — graduated by points-based investment scoring. Disability workers, older workers, and shelter-graduates fully exempt. Highest base ISN rate of the 10 states; offsetting incentives more aggressive.
Art. 175 Fracc. I, Art. 177 Ley de Hacienda del Estado de Baja California
Primary source →Verified 2026-05-01
Querétaro
bajio
3.0%
Impuesto Sobre Nóminas
Abatements: Base deduction equivalent to 8x daily UMA elevated to monthly (~MXN $26,500/month base reduction at 2025 UMA rates). Less aggressive than other states; Querétaro competes on cluster strength rather than tax abatement depth.
Art. 72 Ley de Hacienda del Estado de Querétaro
Primary source →Verified 2026-05-01
Guanajuato
bajio
3.0%
Impuesto Sobre Nóminas
Abatements: 100% reduction for wages paid to disability workers. R&D and tech-innovation personnel stimulus per gubernatorial general rules. New-business and job-creation programs available case-by-case via SDES.
Art. 14 Ley de Hacienda para el Estado de Guanajuato
Primary source →Verified 2026-05-01
San Luis Potosí
bajio
3.0%
Impuesto Sobre Nóminas (Impuesto Sobre Erogaciones por Remuneraciones al Trabajo Personal)
Abatements: Up to 100% IERTP exemption for new businesses establishing in the state, for up to 3 years of effective operation. 100% deduction for wages paid to disability workers (motor, mental, sensory at 80%+ of normal capacity).
Art. 27 y 28 Ley de Hacienda del Estado de San Luis Potosí
Primary source →Verified 2026-05-01
Jalisco
central
3.0%
Impuesto Sobre Nóminas
Abatements: Cultural patron credit (mecenazgo): up to 60% credit against ISN for state-authorized cultural support to Jalisco artists. Standard exemptions for non-profits, public sector, religious associations.
Art. 44 y 44 Bis Ley de Hacienda del Estado de Jalisco
Primary source →Verified 2026-05-01
Puebla
central
3.0%
Impuesto Sobre Erogaciones por Remuneraciones al Trabajo Personal
Abatements: Microbusinesses (≤4 workers) get 25% reduction. 100% reduction for wages of disability workers. 100% reduction for workers age 60+. 100% reduction for first-time IMSS-registered hires (new positions). 4% discount for annual lump-sum payment.
Art. 116 y 117 Ley de Ingresos del Estado de Puebla
Primary source →Verified 2026-05-01
Field note
Impuesto Sobre Nóminas (or equivalently named Impuesto Sobre Remuneraciones al Trabajo Personal in some states). State-level payroll tax. Rate and abatement programs vary by state and reset annually with each state Ley de Ingresos.
Methodology and what v1 does not model
State incentives in Mexico vary on legislative cycles — annual state budget laws (Leyes de Ingresos) reset many programs every January. ISN base rates and codified abatements are the most quantifiable and defensible state-level differentiator. Surrounding programs (training, fast-track, infrastructure) are typically structural and case-by-case, not rate-based.
In v1
ISN rate and abatement program for each state with article-level citation. State training institute (ICAT/IECA/IDEFT/ICET) per state. Fast-track permitting program identification. SEDECO infrastructure-credit availability and state park context. Honest predial caveat (predial is municipal, not state — flagged consistently).
v1 does NOT model
State incentives stack with federal programs (Polos de Bienestar, IMMEX, sectoral export programs). State-level discretionary negotiation is common and not codified. Transfer-pricing exposure and the IETU successor framework are not modeled. The output is a structural comparison, not an effective-rate calculator.
v2 — full 32-state coverage
Expand to the full 32 federal entities. Add a municipal predial overlay for the top 50 industrial municipalities. Surface federal stacking (Polos de Bienestar, IMMEX RVC interaction, sectoral export programs).
v3 — effective-rate calculator
Combine the cost-comparison engine's wage data with this tool's abatement programs to produce an effective-rate output: 'For 200 line workers at MXN $12,000/month, here is your annual ISN exposure in each state, after applicable abatements.' The math composes naturally; v3 wires it.
Adjacent reading
Regional context
Northwest, Northeast, Bajío, Central, and Chihuahua — the operational and labor context that pairs with the incentives layer above.
Adjacent tool
Wage differentials between US and Mexico — the demand side of the labor cost equation. v3 of the incentives tool will combine wages × abatements for an effective-rate output.
Audit-grade work
Negotiating discretionary state stimulus, structuring federal-stacking, transfer pricing, and the documentation that holds at audit. Where the tool ends and engagement begins.