Costa Rica vs Mexico — Tax Comparison 2026

Costa Rica: 0%–25% across 5 brackets. Mexico: 2%–35% across 11 brackets. Compare take-home pay side by side for employees and contractors.

At $100,000 equivalent income, an employee in Costa Rica takes home $76,512 vs $72,077 in Mexico. For contractors, take-home is $53,874 in Costa Rica compared to $56,828 in Mexico.
Estimates based on 2026 rates and approximate exchange rates. Actual take-home varies by individual circumstances.

$

USD amounts use approximate exchange rates (CRC: 0.0022, MXN: 0.0579). Local currency figures are exact.

Gross (CRC/MXN)

Costa Rica

₡45 330 916

Mexico

$1,727,951

Gross (USD)

Costa Rica

$100,000

Mexico

$100,000

Income Tax

Costa Rica

₡5 737 983

Mexico

$452,746

Social Security

Costa Rica

₡4 909 338

Mexico

$29,750

Net (CRC/MXN)

Costa Rica

₡34 683 595

Mexico

$1,245,454

Net (USD)

Costa Rica

$76,512

+$4,435

Mexico

$72,077

Effective Rate

Costa Rica

23.5%

Mexico

27.9%

Where identifiable, mandatory health contributions are shown separately. For other countries, health coverage is included in the Social Security amount.

Bottom Line

At $100,000/year income

Costa Rica gives you $4,435 more per year ($370/mo) as an employee

Mexico gives you $2,954 more per year ($246/mo) as a contractor

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How Taxes Work

Costa Rica Tax System

Employee

  • ·Progressive salary tax (Impuesto al Salario) with 5 brackets from 0% to 25% (Decree 45333-H).
  • ·Monthly brackets: 0% up to ₡918,000, 10% to ₡1,347,000, 15% to ₡2,364,000, 20% to ₡4,727,000, 25% above.
  • ·CCSS 10.83% (SEM health 5.50%, IVM pension 4.33%, Banco Popular 1.00%) — no cap.
  • ·Employer pays ~26.83% CCSS on top.
  • ·Costa Rica uses a territorial tax system — only Costa Rica-source income is taxed.
  • ·Digital Nomad Visa holders are explicitly exempt from income tax on foreign-source income.

Contractor

  • ·Self-employed (actividades lucrativas) use different brackets from salary tax: 0% up to ₡6,244,000/year, then 10% to ₡8,329,000, 15% to ₡10,414,000, 20% to ₡20,872,000, 25% above.
  • ·25% simplified deduction on gross income (Law 10667, Jan 2026) — no receipts needed.
  • ·CCSS for independent workers (trabajadores independientes) uses 5 income categories: ~10.67% (lowest) to ~18.62% (highest); 10.83% used as lower-bound approximation matching employee rate.
  • ·Territorial tax system — only Costa Rica-source income is taxed.
  • ·DN visa holders are exempt from CR tax on foreign-source income.
Mexico Tax System

Employee

  • ·ISR (Impuesto Sobre la Renta) 2026 — 11 progressive brackets (1.92%–35%).
  • ·Based on SAT Anexo 8 / RMF 2026.
  • ·Employee IMSS social security ~2.78%, capped at MXN 1,070,155/year (~25x UMA).
  • ·Employer pays the majority of IMSS contributions on top.

Contractor

  • ·Professional activities regime (Actividades Profesionales).
  • ·Same 11 ISR brackets apply.
  • ·25% expense deduction modeled (professional services estimate).
  • ·No mandatory IMSS for independents.
  • ·RESICO (Régimen Simplificado de Confianza) offers 1%–2.5% on gross revenue for individuals earning under MXN 3.5M/year — significantly lower than regular ISR, but not modeled here (single flat rate doesn't fit RESICO's tiered structure).
  • ·Consult a contador for RESICO eligibility.

Full Costa Rica Tax Calculator →

Detailed breakdown with custom income

Full Mexico Tax Calculator →

Detailed breakdown with custom income

Visa Options

Costa Rica

Digital Nomad Visa (Visa de Nómada Digital) — USD 3,000/mo

View Guide →

Mexico

No dedicated DN visa — alternatives available

View Guide →

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Frequently Asked Questions

How do Costa Rica and Mexico compare on taxes for remote workers?
  • ·Costa Rica uses a territorial tax system — foreign-source income is untaxed, making it ideal for remote workers.
  • ·Mexico taxes worldwide income with brackets from 1.92% to 35% (ISR).
  • ·Costa Rica's domestic brackets top out at 25%.
  • ·For remote workers earning foreign income, Costa Rica's territorial system means 0% tax vs Mexico's full progressive rates.
Does Mexico or Costa Rica have a digital nomad visa?
  • ·Costa Rica offers a dedicated DN visa requiring $3,000/month income with explicit tax exemption on foreign income.
  • ·Mexico has no DN visa — remote workers typically use a Temporary Resident permit (~$2,600/month income) with no special tax treatment.
  • ·Costa Rica's DN visa provides stronger legal protection for tax-free remote work.
How does cost of living compare between Costa Rica and Mexico?
  • ·Mexico is generally cheaper, especially outside major cities.
  • ·Budget $1,000–1,800/month in Mexico vs $1,500–2,500/month in Costa Rica.
  • ·However, Costa Rica's 0% tax on foreign income via the DN visa can more than offset the cost difference for higher earners.
  • ·Mexico's RESICO simplified regime (1–2.5%) exists but isn't available to most remote workers.

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