LLC × residence calculator · Edition 2026.09
If you lived in Mexico: how much tax you would pay on your LLC profit
The income tax law (art. 4-B) treats foreign transparent entities as what they are: the income is attributed to you in the year it arises and taxed under personal income tax, even if you do not withdraw it. One of the clearest rules in the region.
Isaac Cubero · Checked on 14 September 2026 · worldwide income
At $100,000 of profit
On $100,000 of LLC profit, living in Mexico, you would pay about $26,998 a year: a 27% effective rate.
worldwide income
| Personal income tax, 2025 annual rate | $26,998 |
| Estimated total | $26,998 |
Sources: Income Tax Law arts. 4-B, 142-V and 152; 2025 annual table (Annex 8 RMF, DOF 30 Dec 2024) · Fixed exchange rate 17 MXN/USD.
Rank 30 of 38 residences by effective rate at this profit.
- 2025 annual income tax rate on 100% of the profit.
- No personal deductions and no IMSS: affiliation is voluntary for the self-employed.
- You must report the LLC as a transparent entity in your return; leaving it out is what causes problems, not the LLC itself.
- If your activity is subject to VAT in Mexico, that is separate.
- Income Tax Law arts. 4-B, 142-V and 152; 2025 annual table (Annex 8 RMF, DOF 30 Dec 2024)
- Fixed exchange rate 17 MXN/USD.
At three profit levels
What you would pay in Mexico depending on what your LLC earns.
| Annual profit | Estimated tax | Effective rate | You would keep |
|---|---|---|---|
| $50,000 | $11,094 | 22.2% | $38,906 |
| $100,000 | $26,998 | 27% | $73,002 |
| $250,000 | $77,998 | 31.2% | $172,002 |
Brackets applied (Personal income tax, 2025 annual rate)
| Up to 8,952 MXN | 1.9% |
| From 8,952 MXN to 75,985 MXN | 6.4% |
| From 75,985 MXN to 133,536 MXN | 10.9% |
| From 133,536 MXN to 155,230 MXN | 16% |
| From 155,230 MXN to 185,853 MXN | 17.9% |
| From 185,853 MXN to 374,838 MXN | 21.4% |
| From 374,838 MXN to 590,796 MXN | 23.5% |
| From 590,796 MXN to 1,127,927 MXN | 30% |
| From 1,127,927 MXN to 1,503,902 MXN | 32% |
| From 1,503,902 MXN to 4,511,707 MXN | 34% |
| From 4,511,707 MXN to and above | 35% |
And if it were not an LLC
The five cheapest structures from Mexico, distributing all the profit.
| Structure | Corporate | Withholding | You, in Mexico | Total |
|---|---|---|---|---|
| US LLC | $0 | $0 | $26,998 | 27%$26,998 |
| UAE free zone | $0 | $0 | $36,998 | 37%$36,998 |
| S.A. de C.V. in Mexico | $30,000 | $0 | $7,000 | 37%$37,000 |
| Hong Kong Ltd | $8,250 | $0 | $33,368 | 41.6%$41,618 |
| Bulgarian EOOD | $10,000 | $4,500 | $28,098 | 42.6%$42,598 |
Frequently asked questions
Does a US LLC pay tax if I live in Mexico?
The LLC pays no US federal tax if it has no US activity. The income tax law (art. 4-B) treats foreign transparent entities as what they are: the income is attributed to you in the year it arises and taxed under personal income tax, even if you do not withdraw it. One of the clearest rules in the region.
How much would I pay in Mexico on $100,000 of profit?
On $100,000 of LLC profit, living in Mexico, you would pay about $26,998 a year: a 27% effective rate. The figure comes from applying personal income tax, 2025 annual rate to the profit converted to MXN.
Is Mexico a territorial country?
No: Mexico taxes its residents' worldwide income. The LLC profit goes into your income tax under the country's rule (worldwide income).
Next
The figure is the start. The structure is the decision.
To see Mexico against the other 37 residences: the full ladder.