Expansión: IEPS to Increase on Soft Drinks, Cigarettes and Fuels in 2027

Mexico will enter 2027 without new federal taxes, according to the Ministry of Finance and Public Credit (SHCP) in the Economic Package. However, several Special Tax on Production and Services (IEPS) rates will be adjusted as a result of inflation and tax changes that began to apply in 2026. The products affected include soft drinks, cigarettes, gasoline and diesel. 

The General Economic Policy Criteria forecast inflation at approximately 3.8% by the end of 2026. Although the final percentage used to update IEPS rates will depend on the corresponding inflation figure, this estimate provides an indication of the increases that could take effect during 2027. 

Margarita Medrano, Tax Partner at Baker Tilly Mexico , explained that both IEPS and VAT may reflect adjustments related to inflation. In the specific case of IEPS, previous reforms brought additional products into the tax framework and established gradual increases that will continue to have an effect in subsequent fiscal years.

Flavored beverages will undergo a new adjustment

One of the most significant changes involves flavored beverages with added sugars. For 2026, the applicable rate increased from 1.64 pesos to 3.08 pesos per liter and provisions were established for subsequent annual adjustments based on inflation.

Using the inflation estimate indicated by the Ministry of Finance as a reference, the rate could reach approximately 3.19 pesos per liter in 2027. The adjustment would cover products such as soft drinks, juices, nectars and other flavored beverages subject to the tax.

The tax treatment of flavored beverages containing added sweeteners was also modified. Their rate increased from zero to 1.50 pesos per liter in 2026 and, under a 3.8% inflation adjustment scenario, could reach approximately 1.55 pesos per liter the following year.

Cigarettes will continue to see gradual increases

Tobacco cigarettes were also subject to tax changes beginning in 2026. The ad valorem component of the tax increased from 160% to 200% and, under the current provisions, this percentage would remain unchanged in 2027.

Meanwhile, the specific rate per cigarette increased from 0.64 pesos to 0.85 pesos per unit in 2026. The framework provides for gradual increases through 2030 and establishes a rate of 0.9197 pesos per unit for 2027. By the end of that period, the projected amount would reach 1.1584 pesos per unit .

Medrano noted that these adjustments directly affect goods consumers purchase on a daily basis. “If these products increase due to inflation or tax adjustments resulting from higher prices, they will automatically have an impact on the final price,” she explained.

Gasoline and diesel rates will also be updated

For automotive fuels, no new changes were introduced to the tax structure, but the applicable rates are updated annually in line with price movements. In Mexico, gasoline and diesel are subject to three types of IEPS : federal, state and the component associated with CO2 emissions.

Using 3.8% inflation as a reference, the federal rate for regular Magna gasoline could increase from 6.70 pesos per liter in 2026 to 6.95 pesos per liter in 2027. For Premium gasoline, the amount could rise from 5.66 to 5.87 pesos per liter , while the diesel rate could increase from 7.36 to 7.67 pesos per liter .

These figures show that even without the creation of new taxes, adjustment mechanisms established under the tax framework can modify the tax burden applicable to certain goods and ultimately affect their final prices. Businesses and consumers will therefore need to consider these adjustments when preparing their projections for the next fiscal year.

At Baker Tilly, we support companies in analyzing tax changes, assessing their financial and operational impact, and complying with the obligations arising from tax updates applicable to their activities.

Article originally published in Expansión, by Dainzú Patiño.