Philippines vs Mexico
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
🇵🇭 Philippines — Local Government Unit (LGU) Taxes
The Philippines' 82 provinces, 146 cities, and 1,488 municipalities levy business taxes (1%–2% 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 — 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.
Philippines vs Mexico: Key Tax Differences (2026)
💰 Income Tax: Philippines and Mexico have similar top income tax rates (0–35% vs 1.92–35%).
🛒 VAT/Sales Tax: Mexico has a higher consumption tax (12% vs 0–16%).
🏢 Corporate Tax: 🇵🇭 Philippines offers a lower corporate rate (25% vs 30%), which can influence business location decisions.
📈 Capital Gains: 🇵🇭 Philippines taxes investment gains at a lower rate (15% vs 35%), benefiting investors.