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Mexico vs United Arab Emirates
Tax Rate Comparison

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

πŸ‡²πŸ‡½ Mexico
vs
πŸ‡¦πŸ‡ͺ United Arab Emirates
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
1.92–35%
Rates stable; fiscal consolidation needed
No change
0%
No personal income tax; unlikely to change short-term
No change
VAT / GST / Sales Tax
VAT / GST / Sales Tax
0–16%
Standard 16% maintained
No change
5%
5% stable; GCC coordination maintained
No change
Corporate Tax Rate
Corporate Tax Rate
30%
30% maintained; Pillar Two discussions
No change
9%
Corporate tax compliance and reporting maturing
No change
Capital Gains Tax
Capital Gains Tax
35%
No change
No change
0%
No CGT; free zone benefits under review for Pillar Two
No change
Social Security & Payroll
Social Security / Payroll
~35%
Nearshoring investment affecting payroll dynamics
No change
~17.5%
Emiratisation targets affecting employer costs
No change
State, Regional & Local Taxes

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.

πŸ‡¦πŸ‡ͺ United Arab Emirates β€” Emirate-Level Fees & Free Zone Benefits

The UAE has no federal income tax on individuals. Emirates impose municipality fees (~5%) on commercial rents and tourism/hotel fees of 10–15%. Free Zones (DIFC, ADGM, Jebel Ali) offer 0–9% corporate rates for qualifying activities. Real estate transfer fees of 4% apply in Dubai. Emiratisation targets are increasing employer costs.

⚠️ 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 United Arab Emirates: Key Tax Differences (2026)

πŸ’° Income Tax: πŸ‡²πŸ‡½ Mexico has a higher top income tax rate (1.92–35% vs 0%). πŸ‡¦πŸ‡ͺ United Arab Emirates is more favourable for high earners.

πŸ›’ VAT/Sales Tax: Mexico has a higher consumption tax (0–16% vs 5%).

🏒 Corporate Tax: πŸ‡¦πŸ‡ͺ United Arab Emirates offers a lower corporate rate (9% vs 30%), which can influence business location decisions.

πŸ“ˆ Capital Gains: πŸ‡¦πŸ‡ͺ United Arab Emirates taxes investment gains at a lower rate (0% vs 35%), benefiting investors.

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