The Mexican Employers' Confederation (Coparmex) has warned that 31 out of 32 states plan tax increases or new levies in their economic packages for the coming year. This could hinder the growth of micro, small, and medium-sized enterprises and undermine national competitiveness. The business group calls for greater transparency and efficiency in public spending before implementing such measures.
Coparmex conducted an analysis of state economic packages for 2026, drawing from a survey of its 71 business centers across the 32 entities. It found that 31 states propose increases to various taxes or the introduction of new levies, threatening investment attraction amid nearshoring and the T-MEC review in 2026.
Juan José Sierra Álvarez, president of Coparmex, stated: “Increases in state taxes—particularly the Payroll Tax (ISN)—are weakening regional competitiveness and stalling the growth of MSMEs, as well as medium and large companies operating in highly competitive markets, where the tax burden could determine investment decisions between states or even against other countries”.
Currently, 27 entities maintain ISN rates at or below 3%, a threshold Coparmex deems essential for competition. Direct ISN hikes were identified in Baja California Sur, Campeche, Chihuahua, Colima, Nuevo León, and Yucatán, with adjustments from 2% to 3% or 3% to 4%. In other states such as Guanajuato, Guerrero, Hidalgo, Jalisco, Mexico State, Morelos, Oaxaca, Quintana Roo, Sinaloa, and Veracruz, alternatives included new taxes, property tax adjustments, or higher administrative burdens.
“This levy directly impacts formal hiring and companies' ability to sustain their workforce,” warned Sierra Álvarez. The business leader criticized the absence of prior assessments on public spending efficiency and called for prioritizing quality services, infrastructure, and transparency to expand the taxpayer base without overburdening formal job creators.
States aim to offset reduced federal transfers and take on new responsibilities, but companies already face heightened scrutiny and indirect costs like security and health.
