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 $76,479 versus $71,686 in Mexico — a difference of $4,793 per year. For contractors, Mexico comes out ahead: $81,453 versus $78,848. 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: 0.0542). Local currency figures are exact.
| Metric | Costa Rica | Mexico |
|---|---|---|
| Gross (CRC/MXN) | ₡45 537 341 | $1,846,688 |
| Gross (USD) | $100,000 | $100,000 |
| Income Tax | ₡5 779 268 | $493,117 |
| Social Security | ₡4 931 694 | $29,759 |
| Net (CRC/MXN) | ₡34 826 379 | $1,323,812 |
| Net (USD) | $76,479+$4,793 | $71,686 |
| Effective Rate | 23.5% | 28.3% |
Gross (CRC/MXN)
Costa Rica
₡45 537 341
Mexico
$1,846,688
Gross (USD)
Costa Rica
$100,000
Mexico
$100,000
Income Tax
Costa Rica
₡5 779 268
Mexico
$493,117
Social Security
Costa Rica
₡4 931 694
Mexico
$29,759
Net (CRC/MXN)
Costa Rica
₡34 826 379
Mexico
$1,323,812
Net (USD)
Costa Rica
$76,479
+$4,793Mexico
$71,686
Effective Rate
Costa Rica
23.5%
Mexico
28.3%
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 $4,793 more per year ($399/mo) as an employee
Mexico gives you $2,605 more per year ($217/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 | $48,696 (18.8%) | $44,459 (25.9%) | Costa Rica (+$4,237) |
| $100,000 | $76,479 (23.5%) | $71,686 (28.3%) | Costa Rica (+$4,793) |
| $150,000 | $109,792 (26.8%) | $104,686 (30.2%) | Costa Rica (+$5,106) |
Contractors / Self-Employed
| Gross (USD) | Costa Rica net | Mexico net | Who keeps more |
|---|---|---|---|
| $60,000 | $49,556 (17.4%) | $50,570 (15.7%) | Mexico (+$1,014) |
| $100,000 | $78,848 (21.1%) | $81,453 (18.6%) | Mexico (+$2,605) |
| $150,000 | $115,412 (23.1%) | $119,047 (20.6%) | Mexico (+$3,635) |
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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 (federal test 680x daily UMA, about MXN 79,771/month or ~$4,660 in 2026) 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.