Taxes

Top Personal Income Tax Rates in Europe

Most countries’ personal income taxes have a progressive structure, meaning that the tax rate paid by individuals increases as they earn higher wages. The highest income tax rate individuals pay differs significantly across European OECD countries—as shown in today’s map.

The top statutory personal income tax rate applies to the share of income that falls into the highest tax bracket. For instance, if a country has five tax brackets, and the top income tax rate of 50 percent has a threshold of €1 million, each additional euro of income over €1 million would be taxed at 50 percent.

Denmark (55.9 percent), France (55.4 percent), and Austria (55 percent) had the highest top statutory personal income tax rates among European OECD countries in 2021. Hungary (15 percent), Estonia (20 percent), and the Czech Republic (23 percent) had the lowest personal income top rates.

Top Personal Income Tax Rates in Europe
European OECD Country Top Statutory Personal Income Tax Rate
Austria (AT) 55.0%
Belgium (BE) 53.5%
Czech Republic (CZ) 23.0%
Denmark (DK) 55.9%
Estonia (EE) 20.0%
Finland (FI) 51.2%
France (FR) 55.4%
Germany (DE) 47.5%
Greece (GR) 54.0%
Hungary (HU) 15.0%
Iceland (IS) 46.2%
Ireland (IE) 48.0%
Italy (IT) 47.2%
Latvia (LV) 31.0%
Lithuania (LT) 32.0%
Luxembourg (LU) 45.8%
Netherlands (NL) 49.5%
Norway (NO) 39.4%
Poland (PL) 36.0%
Portugal (PT) 53.0%
Slovakia (SK) 25.0%
Slovenia (SI) 50.0%
Spain (ES), Valencia 54.0%
Sweden (SE) 52.3%
Switzerland (CH) 44.8%
Turkey (TR) 40.8%
United Kingdom (GB) 45.0%

Source: PwC, “Worldwide Tax Summaries,” accessed Feb. 1, 2022, taxsummaries.pwc.com.

Products You May Like

Articles You May Like

Key Democrat outlines 5 priorities for $80 billion in IRS funding
Here’s how advisors are helping clients slash their 2022 tax bill
These are the best ways to give to charity for the ‘vast majority of people.’ Here’s how to pick the most tax-efficient strategy
XRP Could Blow From Here
Toyota CEO Akio Toyoda talks about why he isn’t all-in on EVs — and what made him do a ‘happy dance’

Leave a Reply

Your email address will not be published.