These Are The Nations With The Highest (And Lowest) Marginal Income Tax Rates

These Are The Nations With The Highest (And Lowest) Marginal Income Tax Rates

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It’s tax filing time for quite a few countries, as their financial year comes to end.

How differently do countries tax their citizens? Visual Capitalist’s Pallavi Rao took a look at the top marginal individual income tax rates of nearly 150 countries to compare and contrast differences.

Data for this map is sourced from PwC’s Worldwide Tax Summaries, updated between Aug 2024–Feb 2025.

Of course there are limitations to the data. Only the highest portion of an individual’s income is taxed at this rate, and brackets vary significantly on how much money falls into that pool.

Furthermore, property, sales, or other indirect taxes are not included. It also omits state, provincial, and municipal taxes

Ranked: Countries by their Highest Personal Income Tax Rate

Western European countries on average have the highest headline income tax rates in the world.

Per the source, seven countries have a 50%+ top rate, and six of those are in Europe, led by Denmark at 55.9%.

Rank Country ISO Code Headline Personal Income Tax Rate
1 🇩🇰 Denmark DNK 55.9
2 🇫🇮 Finland FIN 55
3 🇱🇺 Luxembourg LUX 51
4 🇦🇹 Austria AUT 50
5 🇧🇪 Belgium BEL 50
6 🇮🇱 Israel ISR 50
7 🇸🇮 Slovenia SVN 50
8 🇳🇱 Netherlands NLD 49.5
9 🇵🇹 Portugal PRT 48
10 🇳🇴 Norway NOR 47.4
11 🇪🇸 Spain ESP 47
12 🇨🇭 Switzerland CHE 45.5
13 🇦🇺 Australia AUS 45
14 🇨🇳 China CHN 45
15 🇩🇪 Germany DEU 45
16 🇫🇷 France FRA 45
17 🇬🇧 UK GBR 45
18 🇯🇵 Japan JPN 45
19 🇰🇷 South Korea KOR 45
20 🇿🇦 South Africa ZAF 45
21 🇬🇷 Greece GRC 44
22 🇮🇹 Italy ITA 43
23 🇸🇳 Senegal SEN 43
24 🇵🇬 Papua New Guinea PNG 42
25 🇨🇱 Chile CHL 40
26 🇨🇩 DRC COD 40
27 🇨🇬 Congo COG 40
28 🇬🇦 Gabon GAB 40
29 🇬🇾 Guyana GUY 40
30 🇮🇪 Ireland IRL 40
31 🇲🇷 Mauritania MRT 40
32 🇳🇨 New Caledonia NCL 40
33 🇹🇷 Türkiye TUR 40
34 🇹🇼 Taiwan TWN 40
35 🇺🇬 Uganda UGA 40
36 🇨🇴 Colombia COL 39
37 🇮🇳 India IND 39
38 🇳🇿 New Zealand NZL 39
39 🇨🇲 Cameroon CMR 38.5
40 🇲🇦 Morocco MAR 38
41 🇪🇨 Ecuador ECU 37
42 🇳🇦 Namibia NAM 37
43 🇺🇸 U.S. USA 37
44 🇿🇲 Zambia ZMB 37
45 🇺🇾 Uruguay URY 36
46 🇭🇷 Croatia HRV 35.4
47 🇦🇷 Argentina ARG 35
48 🇨🇾 Cyprus CYP 35
49 🇩🇿 Algeria DZA 35
50 🇪🇹 Ethiopia ETH 35
51 🇬🇭 Ghana GHA 35
52 🇮🇩 Indonesia IDN 35
53 🇰🇪 Kenya KEN 35
54 🇲🇽 Mexico MEX 35
55 🇲🇹 Malta MLT 35
56 🇵🇰 Pakistan PAK 35
57 🇵🇭 Philippines PHL 35
58 🇹🇭 Thailand THA 35
59 🇹🇳 Tunisia TUN 35
60 🇻🇳 Vietnam VNM 35
61 🇻🇪 Venezuela VEN 34
62 🇨🇦 Canada CAN 33
63 🇱🇻 Latvia LVA 33
64 🇵🇷 Puerto Rico PRI 33
65 🇸🇿 Eswatini SWZ 33
66 🇨🇮 Côte d’Ivoire CIV 32
67 🇱🇹 Lithuania LTU 32
68 🇲🇿 Mozambique MOZ 32
69 🇵🇱 Poland POL 32
70 🇮🇸 Iceland ISL 31.35
71 🇧🇩 Bangladesh BGD 30
72 🇯🇲 Jamaica JAM 30
73 🇯🇴 Jordan JOR 30
74 🇱🇨 Saint Lucia (assumed “Saint”) KNA 30
75 🇲🇾 Malaysia MYS 30
76 🇳🇮 Nicaragua NIC 30
77 🇵🇪 Peru PER 30
78 🇷🇼 Rwanda RWA 30
79 🇸🇻 El Salvador SLV 30
80 🇹🇩 Chad TCD 30
81 🇹🇿 Tanzania TZA 30
82 🇧🇧 Barbados BRB 28.5
83 🇧🇷 Brazil BRA 27.5
84 🇨🇻 Cabo Verde CPV 27.5
85 🇪🇬 Egypt EGY 27.5
86 🇦🇴 Angola AGO 25
87 🇦🇿 Azerbaijan AZE 25
88 🇧🇼 Botswana BWA 25
89 🇨🇷 Costa Rica CRI 25
90 🇩🇴 Dominican Republic DOM 25
91 🇬🇮 Gibraltar GIB 25
92 🇬🇶 Equatorial Guinea GNQ 25
93 🇭🇳 Honduras HND 25
94 🇱🇦 Laos LAO 25
95 🇱🇧 Lebanon LBN 25
96 🇲🇲 Myanmar MMR 25
97 🇵🇦 Panama PAN 25
98 🇸🇰 Slovakia SVK 25
99 🇹🇹 Trinidad & Tobago TTO 25
100 🇳🇬 Nigeria NGA 24
101 🇸🇬 Singapore SGP 24
102 🇦🇱 Albania ALB 23
103 🇨🇿 Czechia CZE 23
104 🇱🇮 Liechtenstein LIE 22.4
105 🇮🇲 Isle of Man IMN 22
106 🇦🇲 Armenia ARM 20
107 🇪🇪 Estonia EST 20
108 🇬🇪 Georgia GEO 20
109 🇬🇬 Guernsey GGY 20
110 🇯🇪 Jersey JEY 20
111 🇰🇭 Cambodia KHM 20
112 🇲🇬 Madagascar MDG 20
113 🇲🇳 Mongolia MNG 20
114 🇲🇺 Mauritius MUS 20
115 🇷🇸 Serbia SRB 20
116 🇸🇪 Sweden SWE 20
117 🇺🇦 Ukraine UKR 18
118 🇭🇰 Hong Kong HKG 16
119 🇭🇺 Hungary HUN 15
120 🇮🇶 Iraq IRQ 15
121 🇲🇪 Montenegro MNE 15
122 🇵🇸 Palestinian Territories PSE 15
123 🇷🇺 Russia RUS 15
124 🇧🇴 Bolivia BOL 13
125 🇱🇾 Libya LBY 13
126 🇲🇴 Macau MAC 12
127 🇲🇩 Moldova MDA 12
128 🇺🇿 Uzbekistan UZB 12
129 🇧🇬 Bulgaria BGR 10
130 🇧🇦 Bosnia & Herzegovina BIH 10
131 🇬🇱 Greenland GRL 10
132 🇰🇿 Kazakhstan KAZ 10
133 🇲🇰 North Macedonia MKD 10
134 🇵🇾 Paraguay PRY 10
135 🇷🇴 Romania ROU 10
136 🇹🇱 Timor-Leste TLS 10
137 🇽🇰 Kosovo XKX 10
138 🇬🇹 Guatemala GTM 7
139 🇦🇪 UAE ARE 0
140 🇧🇭 Bahrain BHR 0
141 🇧🇲 Bermuda BMU 0
142 🇰🇾 Cayman Islands CYM 0
143 🇰🇼 Kuwait KWT 0
144 🇴🇲 Oman OMN 0
145 🇶🇦 Qatar QAT 0
146 🇸🇦 Saudi Arabia SAU 0

Note: Denmark’s figure includes a mandatory labor market tax for all wage earners in the country. Scotland pays a different rate than the rest of the UK.

But as always, the fine print contains more useful information. For example, in Denmark, the top bracket for employment income is 15%. However, this combines with the bottom bracket tax and mandatory healthcare and municipal contributions to raise the income tax ceiling. Finally, income from shares and dividends also attracts a high rate of 42%.

In the U.S., the 37% headline rate is only applicable to income above $609,000 for individuals. Of course, U.S. states tax their residents as well.

And finally, several Middle Eastern countries—also oil producers—don’t charge an income tax.

The Pros and Cons of Western Europe’s High Tax Rates

Individual income taxes often make up the largest source of government revenues.

Thus, higher taxes help fund extensive public services like healthcare, education, and social security.

It can also potentially reduce income inequality by redistributing wealth, supporting lower-income citizens, and fostering social cohesion.

However, less disposable income leads to less consumer spending. And better-skilled workers with higher earnings may relocate, leading to brain drain from the region.

High earners can avoid taxes by routing their incomes or businesses through low tax jurisdictions. Check out Ranked: The World’s Top 10 Tax Havens to see how much offshore wealth is parked around the globe.

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Originally Posted at; https://www.zerohedge.com//