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Mexico vs Japan
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‡΅ Japan
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
5–45%
Basic deduction increase for low earners
No change
VAT / GST / Sales Tax
VAT / GST / Sales Tax
0–16%
Standard 16% maintained
No change
8–10%
No rate change; digital services tax under review
No change
Corporate Tax Rate
Corporate Tax Rate
30%
30% maintained; Pillar Two discussions
No change
~30.62%
Global Minimum Tax applies to large MNCs
No change
Capital Gains Tax
Capital Gains Tax
35%
No change
No change
20.315%
Expanded NISA (tax-free investment) ongoing
No change
Social Security & Payroll
Social Security / Payroll
~35%
Nearshoring investment affecting payroll dynamics
No change
~28.5%
Coverage expansion to part-time workers ongoing
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‡΅ Japan β€” Prefectural & Municipal Inhabitant Tax

Japan's 47 prefectures levy inhabitant tax (δ½ζ°‘η¨Ž) at a flat 10% on top of national income tax β€” 4% prefectural + 6% municipal. A reconstruction special income tax of 2.1% of national tax applies through 2037. Property acquisition tax and fixed asset tax (1.4% of assessed value) are levied locally. Large cities impose additional taxes on large businesses.

⚠️ 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 Japan: Key Tax Differences (2026)

πŸ’° Income Tax: πŸ‡―πŸ‡΅ Japan has a higher top income tax rate (1.92–35% vs 5–45%). πŸ‡²πŸ‡½ Mexico is more favourable for high earners.

πŸ›’ VAT/Sales Tax: Mexico has a higher consumption tax (0–16% vs 8–10%).

🏒 Corporate Tax: πŸ‡²πŸ‡½ Mexico offers a lower corporate rate (30% vs 30.62%), which can influence business location decisions.

πŸ“ˆ Capital Gains: πŸ‡―πŸ‡΅ Japan taxes investment gains at a lower rate (20.315% vs 35%), benefiting investors.

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