Costa Rica vs Mexico — Tax Comparison 2026
Costa Rican taxes vs Mexican taxes, at a glance. Costa Rica: 0%–25% across 5 brackets. Mexico: 2%–35% across 11 brackets. Compare take-home pay side by side for employees and contractors.
Are taxes higher in Costa Rica or Mexico?
For most remote workers, taxes are higher in Mexico. At $100,000, an employee in Costa Rica takes home $76,535 versus $72,194 in Mexico — a difference of $4,341 per year. For contractors, Mexico comes out ahead: $81,943 versus $78,893. Note the winner flips between employees and contractors.
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: 0.0591). Local currency figures are exact.
| Metric | Costa Rica | Mexico |
|---|---|---|
| Gross (CRC/MXN) | ₡45 187 528 | $1,691,876 |
| Gross (USD) | $100,000 | $100,000 |
| Income Tax | ₡5 709 306 | $440,695 |
| Social Security | ₡4 893 809 | $29,750 |
| Net (CRC/MXN) | ₡34 584 413 | $1,221,431 |
| Net (USD) | $76,535+$4,341 | $72,194 |
| Effective Rate | 23.5% | 27.8% |
Gross (CRC/MXN)
Costa Rica
₡45 187 528
Mexico
$1,691,876
Gross (USD)
Costa Rica
$100,000
Mexico
$100,000
Income Tax
Costa Rica
₡5 709 306
Mexico
$440,695
Social Security
Costa Rica
₡4 893 809
Mexico
$29,750
Net (CRC/MXN)
Costa Rica
₡34 584 413
Mexico
$1,221,431
Net (USD)
Costa Rica
$76,535
+$4,341Mexico
$72,194
Effective Rate
Costa Rica
23.5%
Mexico
27.8%
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 $4,341 more per year ($362/mo) as an employee
Mexico gives you $3,050 more per year ($254/mo) as a contractor
Take-Home Pay at $60K, $100K and $150K
Net income after income tax and social contributions, converted to USD at approximate exchange rates. Effective rate in parentheses.
Employees
| Gross (USD) | Costa Rica net | Mexico net | Who keeps more |
|---|---|---|---|
| $60,000 | $48,728 (18.8%) | $44,775 (25.4%) | Costa Rica (+$3,953) |
| $100,000 | $76,535 (23.5%) | $72,194 (27.8%) | Costa Rica (+$4,341) |
| $150,000 | $109,897 (26.7%) | $105,207 (29.9%) | Costa Rica (+$4,690) |
Contractors / Self-Employed
| Gross (USD) | Costa Rica net | Mexico net | Who keeps more |
|---|---|---|---|
| $60,000 | $49,582 (17.4%) | $50,943 (15.1%) | Mexico (+$1,361) |
| $100,000 | $78,893 (21.1%) | $81,943 (18.1%) | Mexico (+$3,050) |
| $150,000 | $115,456 (23.0%) | $119,715 (20.2%) | Mexico (+$4,259) |
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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
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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.