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Salary After Tax · Updated June 2026

US–Mexico Cross-Border Tax Calculator

US–Mexico cross-border work splits into two regimes: border commuters (live MX, work US – US taxes wages at source, Mexico credits) and US remote workers in Mexico (183-day residency makes Mexican rates of up to 35% primary, with US FTC reconciliation).

Both treaties include tie-breakers (permanent home → centre of vital interests → habitual abode) and totalization agreements so social security is paid once – the two clauses that resolve most real disputes.

Salary after tax calculator · 2026

Take-home pay

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Per biweekly check
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Gross salary
Total tax
Effective rate
Marginal rate

Where every dollar goes

    2026 rules: federal brackets, $16,100/$32,200 standard deductions, $184,500 SS wage base. Hourly figures assume 40 h/week × 52. Non-US figures are planning estimates incl. employee social charges.

    Key insights

    Key insights

    • Residence country taxes first; treaty + FTC reconcile.
    • Totalization = social security paid once, not twice.
    • 183 days makes Mexican residency (up to 35%).
    • Employer permanent-establishment risk shapes remote setups.
    • FX conversion can create phantom US-side gains.

    The configurations that matter

    Remote-in-Mexico: Mexican RFC registration and provisional payments for the self-employed; employees of US firms face permanent-establishment questions for the employer. Border zone: special maquiladora and frontier rules apply to wages and VAT.

    Currency adds a hidden layer: US filings convert at yearly average rates, and FX swings can create phantom gains on mortgages and accounts denominated in the other currency.

    FAQ

    Frequently asked questions

    Where do I pay tax if I live in one country and work for the other?

    Generally where you are resident and where work is physically performed – overlapping claims are resolved by the treaty and credited via the FTC. Payroll withholding location ≠ final liability.

    Do I pay social security twice?

    No – the totalization agreement assigns one system based on assignment length and employer location; get the certificate of coverage to stop the second withholding.

    When do I become a Mexican tax resident?

    Primarily at 183+ days or when your centre of vital interests (home, family, income source) sits in Mexico – triggering worldwide taxation at up to 35% with US credits.

    Can my US retirement accounts move with me?

    401(k)s/IRAs keep US deferral; Mexico generally taxes distributions with credit relief. Cross-border advisors recommend leaving the wrapper in place.

    What about state taxes?

    Border states keep claiming income earned in-state by non-residents; remote workers should sever former-state domicile and watch convenience-of-employer rules (NY in particular).

    More on Mexico

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