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Mexico vs Andorra
Tax Rate Comparison

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

🇲🇽 Mexico
vs
🇦🇩 Andorra
Tax Year:

💰 Personal Income Tax Calculator

Enter your income to see your estimated annual tax liability in each country — side by side.

Enter your annual income above to see your personal tax comparison →

Individual Income Tax (Top Marginal Rate)

Top Income Tax Rate
1.92–35%
Rates stable; fiscal consolidation needed
No change
0–10%
10% top; EU alignment reforms ongoing
No change

VAT / GST / Sales Tax

VAT / GST / Sales Tax
0–16%
Standard 16% maintained
No change
4.5%
4.5% IGI — lowest in Europe
No change

Corporate Tax Rate

Corporate Tax Rate
30%
30% maintained; Pillar Two discussions
No change
10%
10% IS; EU Association Agreement compliance
No change

Capital Gains Tax

Capital Gains Tax
35%
No change
No change
0%
No CGT — key differentiator
No change

Social Security & Payroll

Social Security / Payroll
~35%
Nearshoring investment affecting payroll dynamics
No change
~21.5%
CASS stable; healthcare system well-funded
No change
State, Regional & Local Taxes

🇲🇽 Mexico — State & Municipal Taxes

Mexico's 31 states and Mexico City each have their own regimes. States charge local payroll tax (Impuesto Sobre Nómina) 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.

🇦🇩 Andorra — Parish Taxes & Local Levies

Andorra's 7 parishes (parròquies) levy communal taxes including building and land taxes, commercial licence fees, and local service charges. Andorra only introduced a personal income tax (IRPF) in 2015 and corporate tax (IS) in 2012. This micro-state in the Pyrenees between France and Spain remains a significant tax haven due to very low VAT and no inheritance or capital gains tax. It has an Association Agreement with the EU.

⚠️ 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.

Mexico vs Andorra: Key Tax Differences (2026)

💰 Income Tax: 🇲🇽 Mexico has a higher top income tax rate (1.92–35% vs 0–10%). 🇦🇩 Andorra is more favourable for high earners.

🛒 VAT/Sales Tax: Mexico has a higher consumption tax (0–16% vs 4.5%).

🏢 Corporate Tax: 🇦🇩 Andorra offers a lower corporate rate (10% vs 30%), which can influence business location decisions.

📈 Capital Gains: 🇦🇩 Andorra taxes investment gains at a lower rate (0% vs 35%), benefiting investors.

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