Mexico vs Nicaragua
Tax Rate Comparison
Enter your income below for a personal tax estimate, then scroll down for full rate breakdowns.
💰 Personal Income Tax Calculator
Enter your income to see your estimated annual tax liability in each country — side by side.
Individual Income Tax (Top Marginal Rate)
VAT / GST / Sales Tax
Corporate Tax Rate
Capital Gains Tax
Social Security & Payroll
🇲🇽 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.
🇳🇮 Nicaragua — Municipal Taxes
Nicaragua's 153 municipalities levy the Impuesto de Matrícula (2% of prior revenues), Impuesto Municipal sobre Ingresos (IMI at 1% of monthly revenues), property tax (IBI at 1%), and service fees. Nicaragua under Ortega government has faced significant economic disruption from 2018 protests and subsequent international isolation. The economy has stabilized somewhat but remains one of the poorest in Central America. Tax administration reform has been ongoing with support from international institutions.
Mexico vs Nicaragua: Key Tax Differences (2026)
💰 Income Tax: 🇲🇽 Mexico has a higher top income tax rate (1.92–35% vs 0–30%). 🇳🇮 Nicaragua is more favourable for high earners.
🛒 VAT/Sales Tax: Mexico has a higher consumption tax (0–16% vs 15%).
🏢 Corporate Tax: Corporate rates are similar in both countries (30% vs 30%).
📈 Capital Gains: 🇳🇮 Nicaragua taxes investment gains at a lower rate (15% vs 35%), benefiting investors.