Income taxes by country
Income tax is paid in almost every country in the world. The exceptions are few and far between - at the end of 2022, there were only 18 countries in which no income tax had to be paid. First and foremost are the tax havens of Monaco, the Cayman Islands and Bermuda. We have the complete list at the bottom.In all other countries, the state wants its share of the income. So on wages and salaries, capital income, rent and leasing and many more. We have shown here for 39 countries how much tax is due in which country.
All figures refer to the year 2022.
Average tax burden
In the first table you can find the average share that a family with 2 adults and 2 children has to pay in taxes. Not included are the shares of social security contributions that the employer pays in addition.| Country/Region | Ø Income tax | Ø Total tax burden |
|---|---|---|
| Denmark | 34.50% | 31.04% |
| Belgium | 21.89% | 30.95% |
| Lithuania | 15.82% | 29.97% |
| Germany | 9.69% | 29.02% |
| Hungary | 10.46% | 25.94% |
| Iceland | 26.43% | 25.77% |
| Slovenia | 6.62% | 25.27% |
| Finland | 17.79% | 25.20% |
| Turkey | 8.77% | 23.77% |
| Norway | 17.85% | 23.57% |
| Portugal | 11.71% | 22.71% |
| Canada | 17.28% | 21.90% |
| Greece | 7.31% | 21.28% |
| France | 11.88% | 20.90% |
| Australia | 20.60% | 20.60% |
| Luxembourg | 14.39% | 20.18% |
| Ireland | 19.36% | 19.68% |
| United Kingdom | 13.20% | 19.29% |
| Netherlands | 11.25% | 19.27% |
| Sweden | 15.76% | 18.91% |
| Japan | 7.17% | 18.84% |
| United States | 10.87% | 18.52% |
| Austria | 8.39% | 18.21% |
| New Zealand | 18.25% | 17.95% |
| Spain | 11.29% | 17.64% |
| Italy | 17.08% | 17.63% |
| Latvia | 10.06% | 16.27% |
| Slovakia | 4.49% | 14.74% |
| Switzerland | 9.60% | 12.44% |
| South Korea | 4.41% | 12.24% |
| Czechia | 0.38% | 11.38% |
| Israel | 4.65% | 10.70% |
| Estonia | 13.25% | 10.54% |
| Mexico | 8.88% | 10.21% |
| Poland | 2.03% | 9.51% |
The second table is structured identically, but this time applies to a single household without children:
| Country/Region | Ø Income tax | Ø Total tax burden |
|---|---|---|
| Belgium | 26.36% | 40.35% |
| Germany | 17.65% | 37.43% |
| Lithuania | 17.61% | 37.11% |
| Denmark | 35.54% | 35.51% |
| Slovenia | 11.49% | 33.59% |
| Hungary | 15.00% | 33.50% |
| Luxembourg | 19.81% | 32.13% |
| Austria | 15.21% | 31.95% |
| Finland | 20.84% | 31.12% |
| Italy | 20.12% | 28.81% |
| Iceland | 28.08% | 28.20% |
| Portugal | 17.14% | 28.14% |
| Netherlands | 16.06% | 27.74% |
| France | 16.22% | 27.65% |
| Ireland | 23.51% | 27.51% |
| Norway | 19.35% | 27.35% |
| Latvia | 16.01% | 26.51% |
| Turkey | 11.24% | 26.24% |
| Canada | 19.24% | 25.60% |
| United States | 17.16% | 24.81% |
| Sweden | 17.27% | 24.27% |
| Slovakia | 10.85% | 24.25% |
| United Kingdom | 14.33% | 23.64% |
| Australia | 23.00% | 23.00% |
| Greece | 9.01% | 22.98% |
| Poland | 4.93% | 22.75% |
| Japan | 7.85% | 22.30% |
| Spain | 15.04% | 21.39% |
| New Zealand | 20.14% | 20.14% |
| Czechia | 8.48% | 19.48% |
| Israel | 10.86% | 19.12% |
| Switzerland | 12.12% | 18.52% |
| Estonia | 16.79% | 18.39% |
| South Korea | 6.57% | 15.84% |
| Mexico | 9.90% | 11.28% |
| Chile | 0.03% | 7.00% |
What is income tax?
Income tax is a tax - as the name suggests - on income. That is, on wages and salaries, royalties, shareholder remuneration, interests or on income from renting and leasing. All income is added up at the end of the year and the income tax is determined on the basis of the total. In all countries there is an allowance, so that very low incomes are not charged at all. There is also an upper limit, the maximum tax rate in the Unted States is 43.7%. In international comparison, it usually ranges between 35 and 50%. Japan and Denmark are at the top with 55.9%. Only Hungary is below 20%.The average tax rate is shown here. This is what is deducted from the income of most taxpayers.
Total tax burden
However, income tax is not the only thing that does not arrive in one's account from one's salary. There are also other levies, such as health and pension insurance. Other countries have similar deductions. Adding these together gives the total tax burden. Pure consumption taxes, such as value-added taxes or taxes on fuel, tobacco and alcohol, are added on top.United States in 23rd place
If we take an average family with 2 children, the United States ranks only 23rd out of the 39 countries evaluated here in terms of total taxes. In terms of the amount of actual income tax, they are in 21st place. Thus, the social contributions are quite low in comparison. However, it is important to remember that these taxes are paid into pension and health insurance. In other words, in something that benefits citizens in need and in old age. Of course, it is debatable whether the state, pension providers and health insurance companies are using the money wisely. But people in countries that do not receive state coverage not only pay less - they also end up getting less.Single households are taxed much more heavily in all countries. A single person without children has to pay 24.8% of their income to the state. This is 21st place among all the countries listed. This calculation does not refer to high or top earners, but to a normal average income.
All data are based on OECD data and are valid for the year 2022.
Average income around the world
Quality of life 2024 in country comparison
Active volcanoes and eruptions in Italy