Mexico (Latin America) and United States (North America) operate very different payroll systems, which makes a direct salary comparison interesting. On a $90,000 gross, the effective tax burden in United States is roughly 15.7% higher than in Mexico — driven by differences in IMSS vs FICA, bracket structure, and personal allowance.
Same nominal gross applied to both tax systems. Currencies aren't FX-converted — compare structures, not purchasing power.
Where each country wins on the same $90,000 gross — grouped into money, lifestyle, and protection.
$14,098 more per year on the benchmark gross.
15.7% lower effective rate at this salary level.
Top marginal rate 35% in Mexico — top-end effective rate stays lower than the alternative.
Higher net pay ($14,098 more / year) leaves more room to save once rent is paid.
7 income-tax bands vs 8.
Low rent pressure in major cities.
Basic public welfare and mixed healthcare reduce out-of-pocket family costs.
Basic public welfare with mixed healthcare.
Mandatory pension piece: IMSS.
On the same $90,000 gross, a worker takes home roughly $14,098 more per year in Mexico than in United States. That gap reflects the tax structure alone — before rent, healthcare, or savings behaviour come into play.
Housing is the first multiplier. Mexico has low rent pressure, while United States has high rent pressure. That keeps Mexico's nominal advantage closer to a real-world advantage.
Healthcare and pensions go in the opposite direction. Mexico runs a mixed healthcare model — IMSS and ISSSTE for employees; private clinics widely used. United States uses a private model — Private, employer-tied insurance dominates; out-of-pocket costs can be significant. The country with lower take-home often shifts costs that the other country leaves to your private budget.
Net-of-everything, a relocation decision should weigh basic public welfare in Mexico against basic public welfare in United States, plus differences in pension capture, social safety nets, and city-level cost of living.
A side-by-side read on what each country's salary actually buys after tax, rent, and savings room.
95% of gross becomes net.
79% of gross becomes net.
Major cities: low rent pressure.
Major cities: high rent pressure.
After deductions and typical rent, room to save is strong.
After deductions and typical rent, room to save is moderate.
Balance of take-home, rent, and public services in Mexico.
Balance of take-home, rent, and public services in United States.
Effective 4.9% at the benchmark salary.
Effective 20.6% at the benchmark salary.
IMSS at 3.0%.
FICA (Social Security + Medicare) at 7.6%.
Higher take-home ($14,098 more / year) and the ability to live in a lower-cost region of Mexico maximises disposable income.
Mexico keeps a lighter tax structure, which usually offsets the private healthcare and housing setup that expats face anywhere.
Basic public welfare and mixed healthcare in Mexico reduce private spending on childcare, schooling, and medical care.
Top-end effective rate stays lower in Mexico. The bracket structure and any social-contribution cap keep more of every extra dollar at the top of the pay scale.
Mexico provides basic public welfare and mixed healthcare, which matters most when disposable income is tight.
For a single worker on the benchmark gross, take-home pay is higher in Mexico — and without dependents, the value of public welfare matters less.
| Topic | 🇲🇽 Mexico | 🇺🇸 United States |
|---|---|---|
| Tax system | 11-band ISR + small employee IMSS share; employer carries most payroll cost. | Federal + state + local taxes; state can swing effective rates by 10+ points. |
| Healthcare | IMSS and ISSSTE for employees; private clinics widely used. | Private, employer-tied insurance dominates; out-of-pocket costs can be significant. |
| Pension | Afore individual retirement accounts; payouts are modest. | 401(k) is opt-in; Social Security replaces a modest share of pre-retirement income. |
| Housing market | Mexico City and Monterrey are rising; most of Mexico stays cheap. | Wide variance — coastal metros are very expensive, inland cities far cheaper. |
Mexico's ISR income tax uses an 11-band sliding scale with a top rate of 35%. Employee IMSS social contributions are modest (~3%); the employer covers the lion's share. A subsidio para el empleo helps low earners. State payroll taxes are charged to the employer, not the worker.
The US uses a seven-bracket federal income tax on top of a 7.65% FICA payroll tax (Social Security + Medicare). State income taxes — ranging from 0% in places like Texas and Florida to over 13% in California — are not included in this estimate. Most workers also see additional deductions for 401(k), health insurance, and HSA contributions.
Pre-calculated breakdowns at common pay levels in Mexico — open either side for the full page.
Last updated: 2026. Estimates only — see the disclaimer above.