WorldTax CompareAll Comparisons

Mexico vs China
Tax Rate Comparison

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

🇲🇽 Mexico
vs
🇨🇳 China
Tax Year:

💰 Personal Income Tax Calculator

Enter your income to see your estimated annual tax liability in each country — side by side.

Enter your annual income above to see your personal tax comparison →

Individual Income Tax (Top Marginal Rate)

Top Income Tax Rate
1.92–35%
Rates stable; fiscal consolidation needed
No change
3–45%
Continued deduction reforms; threshold adjustments likely
No change

VAT / GST / Sales Tax

VAT / GST / Sales Tax
0–16%
Standard 16% maintained
No change
6–13%
13%/9%/6% structure maintained
No change

Corporate Tax Rate

Corporate Tax Rate
30%
30% maintained; Pillar Two discussions
No change
25%
Pillar Two implementation progressing
No change

Capital Gains Tax

Capital Gains Tax
35%
No change
No change
20%
National property tax reform bill still pending
No change

Social Security & Payroll

Social Security / Payroll
~35%
Nearshoring investment affecting payroll dynamics
No change
~36%
Gradual unification of social insurance base ongoing
No change
State, Regional & Local Taxes

🇲🇽 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.

🇨🇳 China — Provincial, Municipal & Surcharge Taxes

China's 34 provincial-level regions vary in social insurance rates (employer contributions: ~16–23% depending on province). Cities impose Urban Maintenance & Construction Tax (1–7% of VAT paid). Education surcharges add 3–5%. Local governments levy land use taxes by city tier. Free Trade Zones often have preferential 15% corporate rates.

⚠️ 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 China: Key Tax Differences (2026)

💰 Income Tax: 🇨🇳 China has a higher top income tax rate (1.92–35% vs 3–45%). 🇲🇽 Mexico is more favourable for high earners.

🛒 VAT/Sales Tax: Mexico has a higher consumption tax (0–16% vs 6–13%).

🏢 Corporate Tax: 🇨🇳 China offers a lower corporate rate (25% vs 30%), which can influence business location decisions.

📈 Capital Gains: 🇨🇳 China taxes investment gains at a lower rate (20% vs 35%), benefiting investors.

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