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Mexico vs Paraguay
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‡Ύ Paraguay
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
8–10%
10% top; competitive positioning
No change
VAT / GST / Sales Tax
VAT / GST / Sales Tax
0–16%
Standard 16% maintained
No change
10%
10% IVA maintained
No change
Corporate Tax Rate
Corporate Tax Rate
30%
30% maintained; Pillar Two discussions
No change
10%
10%; Pillar Two for large MNCs operating in Paraguay
No change
Capital Gains Tax
Capital Gains Tax
35%
No change
No change
8–10%
8%/10% maintained
No change
Social Security & Payroll
Social Security / Payroll
~35%
Nearshoring investment affecting payroll dynamics
No change
~25.5%
IPS reform discussions; adequacy concerns
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‡Ύ Paraguay β€” Municipal & Departmental Taxes

Paraguay's 17 departments and 254 municipalities levy the Impuesto Inmobiliario (property tax at 1% of assessed value), commercial licence fees (patente comercial), and vehicle registration fees. AsunciΓ³n has the highest commercial licence fees. The SubsecretarΓ­a de Estado de TributaciΓ³n (SET) administers national taxes. Paraguay has one of Latin America's lowest tax burdens (~12% of GDP) and has used flat low rates to attract foreign residents (MADES visa) and financial activity. No wealth tax exists.

⚠️ 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 Paraguay: Key Tax Differences (2026)

πŸ’° Income Tax: πŸ‡²πŸ‡½ Mexico has a higher top income tax rate (1.92–35% vs 8–10%). πŸ‡΅πŸ‡Ύ Paraguay is more favourable for high earners.

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

🏒 Corporate Tax: πŸ‡΅πŸ‡Ύ Paraguay offers a lower corporate rate (10% vs 30%), which can influence business location decisions.

πŸ“ˆ Capital Gains: πŸ‡΅πŸ‡Ύ Paraguay taxes investment gains at a lower rate (10% vs 35%), benefiting investors.

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