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Mexico vs Malaysia
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‡²πŸ‡Ύ Malaysia
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
0–30%
30% top rate; Pillar Two compliance measures
No change
VAT / GST / Sales Tax
VAT / GST / Sales Tax
0–16%
Standard 16% maintained
No change
10%
Service tax 8% maintained; GST return unlikely
No change
Corporate Tax Rate
Corporate Tax Rate
30%
30% maintained; Pillar Two discussions
No change
24%
24% stable; potential reduction discussed for competitiveness
No change
Capital Gains Tax
Capital Gains Tax
35%
No change
No change
10–30%
CGT on unlisted shares fully embedded in system
No change
Social Security & Payroll
Social Security / Payroll
~35%
Nearshoring investment affecting payroll dynamics
No change
~23%
EPF reviewing contribution rates and fund adequacy
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‡²πŸ‡Ύ Malaysia β€” State & Local Authority Taxes

Malaysia's 13 states and 3 federal territories have limited independent taxing powers. States levy quit rent (cukai tanah) on land, assessment rates (cukai pintu/taksiran) on property through local councils, and royalties on natural resources. Petroleum royalties are a major state revenue in Sabah, Sarawak, and Terengganu. Local councils (majlis perbandaran) levy property assessment at 6%–12% of estimated annual rental value. No state income taxes exist β€” this is federal.

⚠️ 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 Malaysia: Key Tax Differences (2026)

πŸ’° Income Tax: πŸ‡²πŸ‡½ Mexico has a higher top income tax rate (1.92–35% vs 0–30%). πŸ‡²πŸ‡Ύ Malaysia is more favourable for high earners.

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

🏒 Corporate Tax: πŸ‡²πŸ‡Ύ Malaysia offers a lower corporate rate (24% vs 30%), which can influence business location decisions.

πŸ“ˆ Capital Gains: πŸ‡²πŸ‡Ύ Malaysia taxes investment gains at a lower rate (30% vs 35%), benefiting investors.

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