# salary after taxes



## Enochius (Mar 30, 2013)

I am I'm the process of working out my contract with my new company and moving to Mexico. Can anyone help me with tax rates or point me in the direction to calculate my net pay after all the taxes are taken out for Mexico? I've tried searching but I'm not having much luck.
I'm sure the taxes are much different than the US. I want to make sure that I don't accept a gross pay that equals a net pay less than what I desire.

Thank you in advance!


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## conorkilleen (Apr 28, 2010)

Nobody is going to take a stab at that since we are not tax experts. Since I get paid from my company in the US and I live in Mexico, they need to do what they call tax equalization. I pay taxes in Mexico and in the US, but "on paper" my salary is adjusted to account for both so I don't lose any money. My company uses PWC and they do my US and Mexico taxes. I would ask them about your situation.


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## Enochius (Mar 30, 2013)

I don't think anyone has to be a tax expert to have an idea. I didn't ask for exact numbers. I currently work in the United States and I'm not a tax expert but just from observation I could get someone in the ballpark if they were to ask a similar question.
I'm not trying to be rude but I don't think you have the ability to speak for everyone on the forum. If people don't reply and answer the question then I can draw a conclusion that no one truly knows the answer.
This forum has been helpful in my other post so I thought I would ask.
People will either answer or they won't.


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## TundraGreen (Jul 15, 2010)

Enochius said:


> I don't think anyone has to be a tax expert to have an idea. I didn't ask for exact numbers. I currently work in the United States and I'm not a tax expert but just from observation I could get someone in the ballpark if they were to ask a similar question.
> I'm not trying to be rude but I don't think you have the ability to speak for everyone on the forum. If people don't reply and answer the question then I can draw a conclusion that no one truly knows the answer.
> This forum has been helpful in my other post so I thought I would ask.
> People will either answer or they won't.


When I was working as a contractor, my net pay was about 20% less than the gross.


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## michmex (Jul 15, 2012)

Enochius said:


> I am I'm the process of working out my contract with my new company and moving to Mexico. Can anyone help me with tax rates or point me in the direction to calculate my net pay after all the taxes are taken out for Mexico? I've tried searching but I'm not having much luck.
> I'm sure the taxes are much different than the US. I want to make sure that I don't accept a gross pay that equals a net pay less than what I desire.
> 
> Thank you in advance!



From a Google search for Mexico Income Tax 2013:

http://www.expat.hsbc.com/1/PA_ES_C...f/en/global_tax_navigator/going_to_mexico.pdf

Preparation of Mexican income taxes is not difficult. The level of difficulty rises as a USA filing to the IRS will also need to be made if you are a USA citizen.

Like conorkileen, my taxes were prepared by our corporate auditors. I split my salary so that I had sufficient funds to pay the bills I needed to pay in both countries which included my health insurance which was paid in the USA. My tax and basic living expenses in Mexico were equalized so that my international service did not present an undue financial burden compared to me staying in the USA. I also wanted to minimize my payment in Pesos to minimize the exchange rate risk.

The tricky part in negotiating a salary paid only in Mexican pesos will be to forecast the USD$-Mexico Peso exchange rate which has shown a lot of variability in the last 12 months.


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## Enochius (Mar 30, 2013)

Thank you for the replies. This helps me.


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## johnmex (Nov 30, 2010)

The only income I have is in pesos. I checked my pay stub today and can confirm that 20% was retained. That includes income tax, IMSS, and Infonavit deductions.


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