United States vs Mexico: Tax Comparison

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On a $100,000 salary, you'd take home $73,812 in United States versus $71,151 in Mexico.

United States

$73,812

+$2,660/year

Mexico

$71,151

That's $222 more per month in United States

Side-by-side breakdown

Highest Take-Home

United States

2025 · California

26.2%

effective tax rate

Take-home
$73,812

$6,151/mo

Income 13% State 4% Social 9%

Mexico

2025

28.8%

effective tax rate

Take-home
$71,151

$5,929/mo

Income 27% Social 2%

Tax rate by income level

Effective Tax Rate by Income

Shows effective tax rate (total tax / gross income) at different income levels in USD

Understanding the difference

Life & Taxes

Chasing the Sun

From digital nomads setting up shop in Mexico City's leafy Condesa to tech professionals climbing the ladder in Silicon Valley, the border between these neighbors is busy with talent seeking new horizons. Whether you're craving the fast-paced innovation of the American dream or the vibrant, family-centric warmth of Mexican culture, both countries offer a magnetic pull for those looking to redefine their lifestyle.

Vibes vs. Velocity

Living in California means balancing world-class amenities and high-octane careers with a notoriously high cost of entry, while life in Mexico offers a slower, more sensory-rich experience where your earnings often stretch much further. You are choosing between the polished efficiency of the U.S. infrastructure and the colorful, spontaneous energy of Mexico's bustling plazas and coastal retreats.

Brackets and Borders

The U.S. keeps it relatively simple with seven federal layers and a significant personal allowance, though the addition of California's state taxes creates a double-decker tax cake. Mexico, conversely, uses a more granular eleven-bracket system with no personal relief, but simplifies your life by completely skipping state-level income taxes, leaving you with just one bill to worry about.

The Safety Net

Your tax dollars in the U.S. fund a complex web of Social Security and Medicare, requiring a larger contribution from high earners to support future health and retirement. In Mexico, the IMSS system provides a unified national health and social security net that serves as the backbone for workers, funded by a flat-capped effective rate that feels lighter on the wallet as your income climbs.

The Ultimate Tradeoff

The 'winner' depends entirely on your priorities: the U.S. offers high-earning potential and robust deductions for homeowners, while Mexico provides a streamlined tax experience that rewards those who value simplicity and a lower cost of living. If you hate paperwork and state bureaucracy, Mexico's single-tier system is a breath of fresh air; if you want massive deductions, the American system is your playground.

Detailed tax breakdown

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