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Ecuador vs Mexico
Tax Rate Comparison

Enter your income below for a personal tax estimate, then scroll down for full rate breakdowns.

πŸ‡ͺπŸ‡¨ Ecuador
vs
πŸ‡²πŸ‡½ Mexico
Tax Year:

πŸ’° Personal Income Tax Calculator

Enter your income to see your estimated annual tax liability in each country β€” side by side.

Enter your annual income above to see your personal tax comparison β†’
Individual Income Tax (Top Marginal Rate)
Top Income Tax Rate
0–37%
37% top; fiscal consolidation continuing
No change
1.92–35%
Rates stable; fiscal consolidation needed
No change
VAT / GST / Sales Tax
VAT / GST / Sales Tax
15%
15% VAT maintained for fiscal reasons
No change
0–16%
Standard 16% maintained
No change
Corporate Tax Rate
Corporate Tax Rate
25%
25%; oil sector dominant; Pillar Two considerations
No change
30%
30% maintained; Pillar Two discussions
No change
Capital Gains Tax
Capital Gains Tax
10%
10% on gains
No change
35%
No change
No change
Social Security & Payroll
Social Security / Payroll
~32.09%
IESS; actuarial deficit concerns
No change
~35%
Nearshoring investment affecting payroll dynamics
No change
State, Regional & Local Taxes

πŸ‡ͺπŸ‡¨ Ecuador β€” Municipal & Provincial Taxes

Ecuador's 24 provinces and 221 cantons (municipalities) levy the impuesto predial (property tax at 0.025%–0.5%), impuesto de patente (business licence), and municipal assets tax. Guayaquil and Quito have the highest municipal commercial charges. The Internal Revenue Service (SRI) administers national taxes. Ecuador uses the US dollar as official currency since 2000, providing monetary stability. Tax reform has been ongoing under successive administrations facing fiscal pressures from oil price volatility.

πŸ‡²πŸ‡½ Mexico β€” State & Municipal Taxes

Mexico's 31 states and Mexico City each have their own regimes. States charge local payroll tax (Impuesto Sobre NΓ³mina) at 1%–4% (employer-paid). Municipal property tax (predial) rates vary significantly. Some states have lodging and entertainment levies. The Maquila sector benefits from special IMMEX programs. Nearshoring boom is driving new investment.

⚠️ Disclaimer: Rates shown are standard top/headline rates for informational purposes. Actual tax liability depends on income level, residency, deductions, and tax treaties. 2025–2026 data reflects announced or enacted rates and may be subject to change. Not financial or legal advice.

Ecuador vs Mexico: Key Tax Differences (2026)

πŸ’° Income Tax: πŸ‡ͺπŸ‡¨ Ecuador has a higher top income tax rate (0–37% vs 1.92–35%). πŸ‡²πŸ‡½ Mexico is more favourable for high earners.

πŸ›’ VAT/Sales Tax: Mexico has a higher consumption tax (15% vs 0–16%).

🏒 Corporate Tax: πŸ‡ͺπŸ‡¨ Ecuador offers a lower corporate rate (25% vs 30%), which can influence business location decisions.

πŸ“ˆ Capital Gains: πŸ‡ͺπŸ‡¨ Ecuador taxes investment gains at a lower rate (10% vs 35%), benefiting investors.

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