Mexico vs Japan
Tax Rate Comparison
Enter your income below for a personal tax estimate, then scroll down for full rate breakdowns.
💰 Personal Income Tax Calculator
Enter your income to see your estimated annual tax liability in each country — side by side.
Individual Income Tax (Top Marginal Rate)
VAT / GST / Sales Tax
Corporate Tax Rate
Capital Gains Tax
Social Security & Payroll
🇲🇽 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.
🇯🇵 Japan — Prefectural & Municipal Inhabitant Tax
Japan's 47 prefectures levy inhabitant tax (住民税) at a flat 10% on top of national income tax — 4% prefectural + 6% municipal. A reconstruction special income tax of 2.1% of national tax applies through 2037. Property acquisition tax and fixed asset tax (1.4% of assessed value) are levied locally. Large cities impose additional taxes on large businesses.
Mexico vs Japan: Key Tax Differences (2026)
💰 Income Tax: 🇯🇵 Japan has a higher top income tax rate (1.92–35% vs 5–45%). 🇲🇽 Mexico is more favourable for high earners.
🛒 VAT/Sales Tax: Mexico has a higher consumption tax (0–16% vs 8–10%).
🏢 Corporate Tax: 🇲🇽 Mexico offers a lower corporate rate (30% vs 30.62%), which can influence business location decisions.
📈 Capital Gains: 🇯🇵 Japan taxes investment gains at a lower rate (20.315% vs 35%), benefiting investors.