Retire in Mexico vs United States: The 2026 Freedom Comparison
If you prioritize low costs, Mexico is your winner. For lifestyle and infrastructure, United States is a strong contender. Here is the breakdown.
CHEAPER
Mexico
$678,857
Required for Financial Independence
Low cost of living and very easy residency for those with savings.
United States
$1,380,000
Required for Financial Independence
High earning potential, but requires the largest 'Freedom Nest Egg'.
Key Freedom Insights for 2026
Capital Required Difference
United States requires $701,143 more to retire comfortably
50.8% less
Annual Living Cost Difference
You'll spend more per year in United States
$31,440
Capital Gains Tax Difference
United States has 5.0% higher capital gains tax
5.0%
Detailed Comparison
| Factor | Mexico | United States |
|---|---|---|
| Cost of Living Index | 0.45 | 1.00 |
| Average Rent (USD) | $850 | $2,200 |
| Capital Gains Tax | 10.0% | 15.0% |
| Safety Score | 5/10 | 7/10 |
| Safe Withdrawal Rate | 3.5% | 4.0% |
Mexico Visa Options
Temporary Resident Visa (Solvency based)
Safety Score:5/10
Avg. Rent:$850/mo
United States Visa Options
Citizen/Permanent Resident
Safety Score:7/10
Avg. Rent:$2,200/mo
Retire in Mexico →
Deep dive into cost of living, visas, and lifestyle in Mexico.
Retire in United States →
Deep dive into cost of living, visas, and lifestyle in United States.
Frequently Asked Questions
Geo-arbitrage is the strategy of earning a strong currency (like USD or EUR) while living in a country with a lower cost of living. In 2026, this is the fastest way to achieve FIRE, allowing you to reduce expenses by 40-60% without lowering your quality of life.
The Freedom Clock calculates your exact 'Freedom Date' based on your savings, income, and the real-time cost of living in your target country. It accounts for 2026 inflation rates and tax laws to give you a precise timeline for early retirement.
For 2026, Temporary Residency requires proof of ~$3,500/month income or ~$60,000 in savings.
Expat hubs like Merida, San Miguel de Allende, and Puerto Vallarta are considered very safe.
If you don't earn Mexican income, you generally only pay tax in your home country (check the US-Mexico treaty).
Foreigners use a 'Fideicomiso' (bank trust) to hold property within 50km of the coast.
Major cities have JCI-accredited hospitals that offer care comparable to the US for a fraction of the cost.
Fiber optic (Totalplay/Izzi) is common in cities with speeds up to 1Gbps.
Yes, your US or Canadian license is valid for driving in Mexico.
A single person can live very well on $1,800/month in most inland cities.
No, everyone (locals and expats) uses 'garrafones' (20L purified water jugs).
The FMM (tourist permit) is granted for up to 180 days, though the exact duration is at the officer's discretion.
A rule of thumb suggesting you can withdraw 4% of your portfolio annually without running out of money over 30 years.
Yes, depending on your 'combined income,' up to 85% of your benefits may be subject to federal income tax.
Florida, Texas, Nevada, Washington, Wyoming, South Dakota, Tennessee, Alaska, and New Hampshire.
Expect to pay $500–$1,200 per month for a silver-tier plan through the ACA marketplace if retiring before Medicare age (65).
Long-term rates are 0%, 15%, or 20% depending on your taxable income level.
At 3% inflation, your purchasing power halves in roughly 24 years, making inflation-protected assets like TIPS essential.
Generally considered to be an annual spend under $40,000, usually requiring relocation to low-cost-of-living (LCOL) areas.
Yes, via Rule 72(t) (SEPP) or a Roth IRA conversion ladder, you can access funds early without a 10% penalty.
While safety varies by city, the US remains stable; suburban and rural areas generally offer very high safety scores.
In cities like San Francisco or NYC, a 1-bedroom apartment averages $3,200–$4,000 per month.
Calculate Your Personal Freedom Date
Use our interactive calculator to see exactly when you can retire in Mexico, United States, or 40+ other countries.
Try the Freedom Calculator →