Mexico vs Malaysia
Tax Rate Comparison
Enter your income below for a personal tax estimate, then scroll down for full rate breakdowns.
π° Personal Income Tax Calculator
Enter your income to see your estimated annual tax liability in each country β side by side.
π²π½ 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%β4% (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.
π²πΎ 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%β12% of estimated annual rental value. No state income taxes exist β this is federal.
Mexico vs Malaysia: Key Tax Differences (2026)
π° Income Tax: π²π½ Mexico has a higher top income tax rate (1.92β35% vs 0β30%). π²πΎ Malaysia is more favourable for high earners.
π VAT/Sales Tax: Mexico has a higher consumption tax (0β16% vs 10%).
π’ Corporate Tax: π²πΎ Malaysia offers a lower corporate rate (24% vs 30%), which can influence business location decisions.
π Capital Gains: π²πΎ Malaysia taxes investment gains at a lower rate (30% vs 35%), benefiting investors.