Mexico vs Brazil
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.
🇧🇷 Brazil — State & Municipal Taxes
Brazil has one of the world's most complex tax systems. States levy ICMS at 7%–18% varying by state. Municipalities levy ISS (services tax) at 2%–5% and IPTU (urban property tax). A sweeping tax reform (EC 132/2023) is gradually replacing ICMS/ISS with unified IBS and CBS taxes through 2033. States impose ITCMD (inheritance/gift tax) up to 8%.
Mexico vs Brazil: Key Tax Differences (2026)
💰 Income Tax: 🇲🇽 Mexico has a higher top income tax rate (1.92–35% vs 0–27.5%). 🇧🇷 Brazil is more favourable for high earners.
🛒 VAT/Sales Tax: Brazil has a higher consumption tax (0–16% vs ~27.5% combined).
🏢 Corporate Tax: 🇲🇽 Mexico offers a lower corporate rate (30% vs 34%), which can influence business location decisions.
📈 Capital Gains: 🇧🇷 Brazil taxes investment gains at a lower rate (22.5% vs 35%), benefiting investors.