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Mexico vs Costa Rica
Tax Rate Comparison

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

🇲🇽 Mexico
vs
🇨🇷 Costa Rica
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
0–25%
25% top; fiscal consolidation achieved
No change

VAT / GST / Sales Tax

VAT / GST / Sales Tax
0–16%
Standard 16% maintained
No change
13%
13% IVA maintained
No change

Corporate Tax Rate

Corporate Tax Rate
30%
30% maintained; Pillar Two discussions
No change
30%
30%; Pillar Two for MNCs; tech sector growing
No change

Capital Gains Tax

Capital Gains Tax
35%
No change
No change
15%
15% maintained
No change

Social Security & Payroll

Social Security / Payroll
~35%
Nearshoring investment affecting payroll dynamics
No change
~41.17%
High contributions; reform proposals for sustainability
No change
State, Regional & Local Taxes

🇲🇽 MexicoState & 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.

🇨🇷 Costa RicaMunicipal Taxes

Costa Rica's 84 cantons (municipalities) levy the impuesto sobre bienes inmuebles (property tax at 0.25% of assessed value), business licences (patente municipal), and construction permits. The Municipalidad de San José and other urban cantons have highest rates. National taxes are administered by the Ministry of Finance (Hacienda). Costa Rica underwent significant fiscal reform in 2018–19 to address a fiscal deficit, converting the sales tax to a comprehensive VAT and modifying income tax.

⚠️ 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 Costa Rica: Key Tax Differences (2026)

💰 Income Tax: 🇲🇽 Mexico has a higher top income tax rate (1.92–35% vs 0–25%). 🇨🇷 Costa Rica is more favourable for high earners.

🛒 VAT/Sales Tax: Mexico has a higher consumption tax (0–16% vs 13%).

🏢 Corporate Tax: Corporate rates are similar in both countries (30% vs 30%).

📈 Capital Gains: 🇨🇷 Costa Rica taxes investment gains at a lower rate (15% vs 35%), benefiting investors.

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