America's biggest expat retirement community — for good reason
Over 1 million Americans live in Mexico — more than any other foreign country. Proximity to the US, low cost of living, world-class healthcare in major cities, and well-established expat hubs (Lake Chapala, San Miguel de Allende, Mérida) make it the most practical international retirement destination for Americans. Direct flights to almost any US city. Medicare doesn't work, but private care is so affordable many retirees skip insurance entirely.
Temporary Resident: ~$4,400/month in monthly income OR ~$73,000 in savings (4-year visa). Permanent Resident: ~$7,300/month income OR ~$295,000 in savings. Apply at a Mexican consulate in the US. Income thresholds rise yearly with the Mexican minimum wage.
Residents are taxed on worldwide income, but US Social Security is exempt under the US-Mexico tax treaty. Mexico's progressive brackets top out at 35% but most retirees pay 0–15% on Mexican-source income only. No estate tax. The Foreign Earned Income Exclusion does not apply to passive retirement income.
IMSS (public) is available to residents for about $500/year, with caveats around pre-existing conditions. Most expats use private hospitals — a primary care visit runs $25–50, specialist $40–80, and major surgery is typically 30–50% of US prices. International insurance plans run $150–400/month depending on age.
Highly varied. Lake Chapala and San Miguel sit at 5,000+ ft with spring-like weather year-round. Mérida is tropical/humid. Coastal areas (Puerto Vallarta, Playa del Carmen) are hot and beachy.
Mexico layers three great eras — sophisticated pre-Hispanic civilizations, three centuries as the heart of Spanish colonial America, and a proudly independent modern nation. That layering is visible everywhere retirees settle: Aztec and Maya sites near modern highways, colonial silver towns like San Miguel de Allende with their baroque churches and cobbled streets, and a food culture recognized by UNESCO as world heritage. American and Canadian retirees have been settling here since the mid-twentieth century, when artists and veterans discovered the highland towns, so today's expat infrastructure — English-speaking doctors, established communities, familiar goods — rests on generations of precedent. Family, plaza life, and festivals still organize the calendar, which is much of the country's appeal: daily life feels social and rooted in a way many newcomers say they had been missing.
Ranked by overall rating. Click any city for the full guide.
$2,500/mo couple · Safety 4/5 · Healthcare 4/5
$1,800/mo couple · Safety 4/5 · Healthcare 4/5
$2,400/mo couple · Safety 3/5 · Healthcare 4/5
$2,200/mo couple · Safety 4/5 · Healthcare 4/5
$1,700/mo couple · Safety 4/5 · Healthcare 3/5
Compare your US tax burden vs Mexico's in 30 seconds.
Open tax estimator →Temporary or Permanent Resident Visa. Temporary Resident: ~$4,400/month in monthly income OR ~$73,000 in savings (4-year visa). Permanent Resident: ~$7,300/month income OR ~$295,000 in savings. Apply at a Mexican consulate in the US. Income thresholds rise yearly with the Mexican minimum wage.
Residents are taxed on worldwide income, but US Social Security is exempt under the US-Mexico tax treaty. Mexico's progressive brackets top out at 35% but most retirees pay 0–15% on Mexican-source income only. No estate tax. The Foreign Earned Income Exclusion does not apply to passive retirement income.
IMSS (public) is available to residents for about $500/year, with caveats around pre-existing conditions. Most expats use private hospitals — a primary care visit runs $25–50, specialist $40–80, and major surgery is typically 30–50% of US prices. International insurance plans run $150–400/month depending on age.
A couple lives well on $1,800–$2,800/month in most expat towns; coastal resort cities run $2,800–$4,000/month.
Information on this page is for general planning and educational purposes only — not legal, immigration, or tax advice.