Mexico vs Philippines
Tax Rate Comparison
Enter your income below for a personal tax estimate, then scroll down for full rate breakdowns.
๐ฐ Personal Income Tax Calculator
Enter your income to see your estimated annual tax liability in each country โ side by side.
๐ฒ๐ฝ Mexico โ State & Municipal Taxes
Mexico's 31 states and Mexico City each have their own regimes. States charge local payroll tax (Impuesto Sobre Nรณmina) at 1%โ4% (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.
๐ต๐ญ Philippines โ Local Government Unit (LGU) Taxes
The Philippines' 82 provinces, 146 cities, and 1,488 municipalities levy business taxes (1%โ2% of gross receipts), real property tax, and fees. Cities can levy local business taxes at their own rates within national caps. The local business tax is a major compliance burden for businesses operating across multiple LGUs. The BIR (Bureau of Internal Revenue) administers national taxes. The Create Act (2021) significantly reformed corporate income tax rates.
Mexico vs Philippines: Key Tax Differences (2026)
๐ฐ Income Tax: Mexico and Philippines have similar top income tax rates (1.92โ35% vs 0โ35%).
๐ VAT/Sales Tax: Mexico has a higher consumption tax (0โ16% vs 12%).
๐ข Corporate Tax: ๐ต๐ญ Philippines offers a lower corporate rate (25% vs 30%), which can influence business location decisions.
๐ Capital Gains: ๐ต๐ญ Philippines taxes investment gains at a lower rate (15% vs 35%), benefiting investors.