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Mexico vs Canada
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‡¦ Canada
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
15–33%
Federal brackets; new govt may revisit top rates
No change
VAT / GST / Sales Tax
VAT / GST / Sales Tax
0–16%
Standard 16% maintained
No change
5–15%
GST/HST normalized after holiday period
No change
Corporate Tax Rate
Corporate Tax Rate
30%
30% maintained; Pillar Two discussions
No change
15%
15% federal; Global Minimum Tax active
No change
Capital Gains Tax
Capital Gains Tax
35%
No change
No change
~33.3%
2/3 inclusion rate maintained
No change
Social Security & Payroll
Social Security / Payroll
~35%
Nearshoring investment affecting payroll dynamics
No change
~12.3%
CPP contribution rates stabilizing
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‡¦ Canada β€” Provincial Income & Sales Taxes

Canada's 10 provinces each levy their own income tax (4%–25.75% top). Combined federal+provincial top rates exceed 50% in Quebec, Nova Scotia, and Ontario. Quebec has its own QPP and QST (9.975%). Alberta has no provincial sales tax. HST replaces GST+PST in Atlantic provinces and Ontario. Property taxes are municipal.

⚠️ 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 Canada: Key Tax Differences (2026)

πŸ’° Income Tax: πŸ‡²πŸ‡½ Mexico has a higher top income tax rate (1.92–35% vs 15–33%). πŸ‡¨πŸ‡¦ Canada is more favourable for high earners.

πŸ›’ VAT/Sales Tax: Mexico has a higher consumption tax (0–16% vs 5–15%).

🏒 Corporate Tax: πŸ‡¨πŸ‡¦ Canada offers a lower corporate rate (15% vs 30%), which can influence business location decisions.

πŸ“ˆ Capital Gains: πŸ‡¨πŸ‡¦ Canada taxes investment gains at a lower rate (33.3% vs 35%), benefiting investors.

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