- The Economic Package includes an IEPS of 8% for video games with violent content classified as C or D.
- It would reach physical sales, digital services, and in-game purchases; it is expected to raise 183 million pesos.
- Subscriptions with a mixed catalog must break down prices or 70% will be presumed to be taxed.
- The measure seeks to discourage underage consumption and fund public health, without prohibition.
The Mexican Government's proposal to implement a IEPS of the 8% to video games with violent content has sparked debate in the industry and among playersThe measure, included in the 2026 Economic Package, is proposed as an instrument to curb the consumption of titles unsuitable for minors and, by the way, finance public health programs.
According to the explanatory statement, the tax is framed within the so-called Healthy taxes, along with sugary drinks and tobacco. The Executive maintains that studies have detected associations between the use of violent video games and higher levels of aggression in adolescents, in addition to social and psychological effects such as isolation or anxiety; at the same time, it emphasizes that It's not about prohibiting, but about sending a deterrent signal and encouraging more informed consumption..
What exactly does the new IEPS tax?
The initiative sets a rate of 8% ad valorem on video games classified in Mexico as C and D (equivalent to ESRB M/AO or PEGI 18), whether in physical format or through digital access and download services. It also covers additional content within free or paid games, for example microtransactions, battle passes or extra levels.
When a subscription service includes both games subject to IEPS and others exempt, you will need to break down the price corresponding to each segmentIf you fail to do so, the tax authority will assume that 70% of the value of the quota is linked to taxable securities and will apply the tax on that portion, unless the platform proves otherwise.
The project contemplates specific obligations for platforms and digital service providers: registration with the SAT, designation of legal representative when appropriate, retention and payment of IEPS and periodic reports on operations. In cases of non-compliance, the authority may order temporary blocking of the service for users in national territory.
The Treasury estimates that the measure would contribute around 183 million pesos in its first year. It is part of a broader package that also tightens taxes on sugary drinks and tobacco, and increases the tax on online betting From 30% to 50%.
Expected impact on prices, players and industry
On the pocket, the immediate effect would be an increase above the 8% off the final ticket of the affected titles, since the IEPS is added to other taxes in force. The pressure would be especially noticeable in very popular genres such as shooters: according to the National Survey on Audiovisual Content Consumption 2024, 26% of gamers in Mexico use this type of video game.
Market size helps to gauge the scope. With more than 76 million players and a turnover that exceeded 2,300 billion dollars in 2024, Mexico is the first country in Latin America for video game consumption and is among the ten largest in the world. Industry analysts warn that a New tax could slow growth after years of cost increases due to imports, logistics and exchange rates.
The added administrative obligations for platforms and stores —withholdings, reports to the SAT, price breakdown into subscriptions—would also entail operational adjustments. Some stakeholders consulted fear that if prices rise and access becomes more expensive, piracy or the informal market is encouraged, especially in price-sensitive segments.
In parallel, organizations of the local ecosystem influence the need to strengthen the use of age classifications and parental controls, and to support families and guardians, instead of placing the burden solely on the product's taxation.
Foundations, criticisms and the legislative process
The Government justifies the tax for purposes extra-fiscal: reduce minors' exposure to violent content and obtain resources to address impacts associated with physical and mental health. President Claudia Sheinbaum has reiterated that the goal is not to prohibit, but discourage consumption of certain content and promote safer leisure and cultural alternatives, with a special focus on guidance for mothers and fathers.
Some of the studies cited—such as the analysis on social and psychological effects video games among minors—has been around for a decade or more, which has raised concerns in the academic community and among players, who are calling for a review of the most recent evidence. Even so, the explanatory statement insists that the tax is intended to generate a purchase reflection and improve the information available to consumers.
At the legal level, the proposal introduces adjustments to article 2 of the IEPS Law to classify video games with content as objects of the tax. violent, extreme or adult, and adds retention mechanisms for intermediation platforms (article 5-A BIS), in addition to duties for providers without establishment in Mexico (article 20-A).
If approved in Congress, Mexico could become one of the first countries to apply a specific tax of this magnitude to violent video games.. Background elsewhere - such as the attempt to tax the 10% in Pennsylvania—did not prosper, in that case due to a conflict with freedom of expression. Instead, countries such as Germany, South Korea and China have opted to content regulation or play time for minors, not for taxes.
In a country with a massive and expanding ecosystem of players, the discussion goes beyond the fiscal: it crosses public health, security, consumer rights and development of the creative industryWhile the 8% IEPS tax on violent games advances, the sector is keeping a close eye on subscriptions, micropayments, age ratings, and the ability of platforms to adapt without making access to digital entertainment excessively expensive.
I am a technology enthusiast who has turned his "geek" interests into a profession. I have spent more than 10 years of my life using cutting-edge technology and tinkering with all kinds of programs out of pure curiosity. Now I have specialized in computer technology and video games. This is because for more than 5 years I have been writing for various websites on technology and video games, creating articles that seek to give you the information you need in a language that is understandable to everyone.
If you have any questions, my knowledge ranges from everything related to the Windows operating system as well as Android for mobile phones. And my commitment is to you, I am always willing to spend a few minutes and help you resolve any questions you may have in this internet world.