Mexico

#21 overall · Score 66.9 / 100 · unchanged from 2025

Overall

#21

66.9 / 100

unchanged from 2025

Corporate

#28

57.8 / 100

unchanged from 2025

Individual

#26

57.5 / 100

up one place from 2025

Consumption

#12

67.6 / 100

unchanged from 2025

Property

#2

80.1 / 100

unchanged from 2025

Cross-border

#38

40.3 / 100

unchanged from 2025

Strengths

  • The personal income tax rate on dividends is 17.1 percent, below the OECD average of 24.7 percent, and capital gains from domestically listed shares are taxed at a low rate of 10 percent.
  • Corporations can deduct property taxes when calculating taxable income.
  • Mexico allows for Last In, First Out treatment of the cost of inventory.

Weaknesses

  • Businesses are severely limited in the time period in which they can use net operating losses to offset future profits and are unable to use losses to reduce past taxable income.
  • Mexico's VAT covers only 34 percent of final consumption, revealing both policy and enforcement gaps.
  • Mexico has a worldwide tax system with the highest withholding tax rate in the OECD of 35 percent on interest and royalties and a relatively small treaty network of 60 countries (OECD average of 75 countries).

Component Scores

Mexico category scores out of 100Corporate Taxes: score 57.8, rank 28. Individual Taxes: score 57.5, rank 26. Consumption Taxes: score 67.6, rank 12. Property Taxes: score 80.1, rank 2. Cross-Border Tax Rules: score 40.3, rank 38255075100Corporate Taxes: 57.8 (rank 28)Individual Taxes: 57.5 (rank 26)Consumption Taxes: 67.6 (rank 12)Property Taxes: 80.1 (rank 2)Cross-Border Tax Rules: 40.3 (rank 38)CorporateIndividualConsumptionPropertyCross-border
Category Rank Score vs 2025
Corporate Taxes #28 57.8 unchanged from 2025
Individual Taxes #26 57.5 up one place from 2025
Consumption Taxes #12 67.6 unchanged from 2025
Property Taxes #2 80.1 unchanged from 2025
Cross-Border Tax Rules #38 40.3 unchanged from 2025

Ranking Changes, 2014–2026

Mexico's best overall rank was 21st and its worst was 31st. It ranks 21st in 2026.

Overall rank by year for MexicoMexico: 2014 rank 31, 2015 rank 28, 2016 rank 25, 2017 rank 25, 2018 rank 26, 2019 rank 23, 2020 rank 25, 2021 rank 23, 2022 rank 22, 2023 rank 24, 2024 rank 21, 2025 rank 21, 2026 rank 212014201520162017201820192020202120222023202420252026Mexico 2014: rank 31Mexico 2015: rank 28Mexico 2016: rank 25Mexico 2017: rank 25Mexico 2018: rank 26Mexico 2019: rank 23Mexico 2020: rank 25Mexico 2021: rank 23Mexico 2022: rank 22Mexico 2023: rank 24Mexico 2024: rank 21Mexico 2025: rank 21Mexico 2026: rank 21#31#21

OECD Context

Each row places all 38 countries on a 0–100 score scale for one measure. Mexico is highlighted; the dashed line is the OECD median.

All 38 Countries' Ranks

Overall and category ranks for all 38 countries
CountryOverallCorporateIndividualConsumptionPropertyCross-border
Estonia#1#2#1#24#1#7
Latvia#2#1#8#22#4#6
New Zealand#3#31#7#1#8#14
Switzerland#4#7#9#4#36#2
Lithuania#5#3#10#23#6#16
Luxembourg#6#20#21#7#15#5
Czech Republic#7#9#4#32#5#11
Australia#8#29#14#9#3#23
Turkey#9#21#6#15#22#8
Hungary#10#5#3#38#23#4
Israel#11#11#31#11#10#18
Slovak Republic#12#24#2#33#7#17
Sweden#13#6#18#26#9#12
Costa Rica#14#35#13#6#11#29
Canada#15#17#28#8#25#28
Netherlands#16#23#30#14#20#3
United States#17#8#17#3#27#37
Austria#18#18#27#17#17#10
Germany#19#30#34#13#12#9
Norway#20#15#29#27#16#15
Mexico#21#28#26#12#2#38
Finland#22#10#24#28#21#24
Greece#23#22#5#29#30#19
Chile#24#32#23#10#13#36
Slovenia#25#14#12#30#24#30
Korea#26#26#38#2#31#34
Belgium#27#16#15#25#28#21
Japan#28#36#35#5#26#31
Ireland#29#4#36#35#18#27
United Kingdom#30#25#22#34#33#1
Denmark#31#19#37#20#14#32
Poland#32#12#11#36#29#25
Portugal#33#34#19#21#19#33
Iceland#34#13#32#19#34#26
Spain#35#33#20#18#35#20
Italy#36#27#16#37#38#22
Colombia#37#37#25#16#37#35
France#38#38#33#31#32#13

Across the OECD

Mexico ranks 21st of 38 OECD countries on the overall index.

Source: 2026 International Tax Competitiveness Index.

Notes on the Data

The 2026 Index uses the most up-to-date data available as of July 2026. Data may not reflect changes in countries making rapid reforms.

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About the Authors

Alex Mengden Tax Foundation
Expert

Alex Mengden

Economist

Alex Mengden is an Economist at the Tax Foundation, where he focuses on international tax issues and tax policy in Europe. He holds a BA in philosophy and economics from the University of Bayreuth and an MSc in economics from the Ludwig Maximilian University of Munich.

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Luis Zarka

Transatlantic Tax Fellow

Luis Zarka was a 2026 Transatlantic Tax Fellow with the Tax Foundation’s Center for Global Tax Policy.

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