High private earnings tax charges in Europe, 2022

Private earnings taxes in most nations have a progressive construction, that means that the tax charge that people pay will increase as they earn larger wages. The best earnings tax charges paid by people differ considerably amongst European OECD nations—as proven in immediately’s map.

The highest statutory private earnings tax charge applies to the portion of earnings that falls within the highest tax bracket. For instance, if a rustic has 5 tax brackets, and a high earnings tax charge of fifty % capped at €1 million, then each extra euro of earnings over €1 million can be taxed at 50 %.

Denmark (55.9 %), France (55.4 %), and Austria (55 %) had the best statutory private earnings tax charges amongst European OECD nations in 2021. Hungary (15 %), Estonia (20 %), and the Czech Republic (23 %) had the bottom private incomes.

High private earnings tax charges in Europe
European OECD International locations High Statutory Private Earnings Tax Charge
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%
Eire (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%

Supply: PwC, “Worldwide Tax Abstract,” accessed February 1, 2022, taxsummaries.pwc.com.

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