Avoid a 17,000-peso fine: Do you have to pay taxes when selling your car? This is what the SAT says.

The SAT warns that the sale of used cars must be declared. Find out when you must pay income tax and how to avoid fines of up to 17,000 pesos.

Selling a used car in Mexico doesn't just involve negotiating a price and signing a contract; you also have tax obligations with the SAT (Tax Administration Service) that you must comply with to avoid penalties.

The Tax Administration Service closely monitors these transactions and can impose fines exceeding 17,000 pesos if the transaction is not reported correctly.

According to the SAT, individuals and legal entities must declare the purchase and sale of a vehicle under the Property Disposal Regime .

If you are not registered with the RFC (Taxpayer Taxpayer Registry), you must register. Failure to do so can result in penalties ranging from 1,400 to 17,370 pesos , in addition to possible surcharges, audits, and impacts to your credit history .

The good news is that you don't always pay Income Tax (ISR) when selling a used car.

The law establishes an exemption if the profit does not exceed three annual UMA (approx. 123,820 pesos ).

• Example : If you sell your car for 150 thousand pesos and you bought it for 120 thousand pesos , your profit is 30 thousand pesos , so you would not pay ISR.

But if the profit exceeds that limit, you will have to pay the corresponding ISR under the progressive rate of up to 35% .

In addition to declaring the sale, the SAT requires taxpayers to follow other important steps:

• Issue a CFDI (Digital Tax Receipt via the Internet) , even in transactions between individuals.
• Keep contracts, payment receipts, and bank evidence in case of requests from authorities or financial clarifications.

If you plan to sell your vehicle, remember to report the transaction to the SAT ( Tax Administration Service) to avoid fines and tax complications. Although in most cases you won't pay income tax, notification is mandatory.

Complying with these provisions not only saves you from penalties, it also protects your credit history and your financial security .