🇲🇽 Retire in Mexico

Tax rates, cost of living, special programs, and top cities for international investors and retirees.

Tax System Overview

Mexico taxes worldwide income at progressive rates up to 35% if you become a tax resident (183+ days). Stock market gains and dividends are taxed at 10%. Be careful — overstaying as a digital nomad can trigger tax residency and worldwide taxation on all your income.

  • No wealth tax

What Would You Pay?

Estimated annual tax on different levels of investment income (capital gains + dividends + interest):

Annual Investment IncomeEstimated TaxEffective Rate
$50,000$4,3948.8%
$100,000$9,0599.1%
$200,000$18,5199.3%

Assumes 60% capital gains, 25% dividends, 15% interest. Actual tax depends on your specific income mix.

Top Cities in Mexico

Tax rates and programs are subject to change. Information is current as of 2026. Always consult a qualified tax professional before making relocation decisions.