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Mexico

Mexico uses a progressive income tax system (ISR — Impuesto sobre la Renta) with eleven brackets, ranging from 1.92% to 35% on annual income exceeding MXN 4,511,707. Monthly withholding tables align with annual brackets. Residents are taxed on worldwide income, while non-residents pay a flat 25% on Mexican-source employment income. Social security contributions (IMSS) cover healthcare, retirement, disability, and housing. Employee contributions are approximately 2.8% of salary, while employer contributions range from 25% to 35% of payroll depending on risk classification and salary level. Contributions are capped at 25 times the UMA (Unidad de Medida y Actualizacion). Mexico mandates several statutory benefits: 15 days of Christmas bonus (aguinaldo), a profit-sharing payment (PTU) capped at three months' salary, and a minimum of 12 vacation days in the first year (increasing with seniority). Vacation premium of 25% of vacation pay is also mandatory. The VAT (IVA) rate is 16% nationwide, with a 0% rate on food and medicine. Corporate tax is a flat 30%. Mexico has an extensive double tax treaty network with over 60 countries. The CFDI electronic invoicing system is one of the most advanced in the world, with all invoices required to be digitally issued and validated through authorized providers.

Median Salary

$10,000.00

Top Tax Rate

35.0%

Cost of Living

35.00

Min. Wage

$55,000.00

Salaries by Role

Role Median (USD) Net (USD) Entry Senior
CTO $55,000.00 $44,000.00 $40,000.00 $95,000.00
Engineering Manager $43,750.00 $35,000.00 $33,750.00 $62,500.00
AI/ML Researcher $40,000.00 $32,000.00 $27,500.00 $62,500.00
Cloud Architect $38,750.00 $31,000.00 $28,750.00 $56,250.00
Tech Lead $38,750.00 $31,000.00 $28,750.00 $55,000.00
ML Engineer $35,000.00 $28,000.00 $25,000.00 $52,500.00
Site Reliability Engineer $33,750.00 $27,000.00 $23,750.00 $50,000.00
Product Manager $32,500.00 $26,000.00 $22,500.00 $50,000.00
Security Engineer $32,500.00 $26,000.00 $23,000.00 $48,750.00
Blockchain Developer $32,500.00 $26,000.00 $22,500.00 $50,000.00
Data Scientist $31,250.00 $25,000.00 $21,250.00 $47,500.00
DevOps Engineer $31,250.00 $25,000.00 $22,000.00 $47,500.00
Software Engineer $30,000.00 $24,000.00 $21,250.00 $46,250.00
Data Engineer $30,000.00 $24,000.00 $20,500.00 $46,250.00
Backend Developer $28,750.00 $23,000.00 $20,000.00 $43,750.00
Full Stack Developer $28,000.00 $22,400.00 $19,500.00 $42,500.00
Mobile Developer $27,500.00 $22,000.00 $18,750.00 $42,000.00
Frontend Developer $26,250.00 $21,000.00 $18,000.00 $40,000.00
UI/UX Designer $25,000.00 $20,000.00 $17,000.00 $37,500.00
QA Engineer $21,250.00 $17,000.00 $14,500.00 $31,250.00

Tax System

Income Tax

Progressive — up to 35.0%

Social Security (Employee)

2.8%

Corporate Tax

30.0%

VAT / GST

16.0%