Mexico vs Israel
Tax Rate Comparison
Enter your income below for a personal tax estimate, then scroll down for full rate breakdowns.
๐ฐ Personal Income Tax Calculator
Enter your income to see your estimated annual tax liability in each country โ side by side.
๐ฒ๐ฝ Mexico โ State & Municipal Taxes
Mexico's 31 states and Mexico City each have their own regimes. States charge local payroll tax (Impuesto Sobre Nรณmina) at 1%โ4% (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.
๐ฎ๐ฑ Israel โ Municipal & Local Authority Taxes
Israel's 255 local authorities (cities, regional councils) levy Arnona (property tax/municipal rate) on residents and businesses. Arnona rates vary significantly by local authority โ Tel Aviv and Herzliya have higher rates than peripheral areas. There is a national equalization grant system to help weaker municipalities. Employers pay National Insurance (Bituach Leumi) and health tax to the national level. The tax authority (ITA) is national; local authorities have no income tax powers.
Mexico vs Israel: Key Tax Differences (2026)
๐ฐ Income Tax: ๐ฎ๐ฑ Israel has a higher top income tax rate (1.92โ35% vs 10โ50%). ๐ฒ๐ฝ Mexico is more favourable for high earners.
๐ VAT/Sales Tax: Israel has a higher consumption tax (0โ16% vs 18%).
๐ข Corporate Tax: ๐ฎ๐ฑ Israel offers a lower corporate rate (23% vs 30%), which can influence business location decisions.
๐ Capital Gains: ๐ฎ๐ฑ Israel taxes investment gains at a lower rate (30% vs 35%), benefiting investors.