Personal Taxes

High revenue tax charges in Europe

Most countries’ personal income taxes are structured progressively, which means that the tax rate paid by individuals increases as they earn higher wages. The highest tax rate that individuals pay differs significantly across OECD European countries – as shown on today’s map.

The highest statutory income tax rate applies to the proportion of income that falls into the highest tax bracket. For example, if a country has five tax brackets and the highest income tax rate of 50 percent has a threshold of 1 million euros, every additional euro with an income of more than 1 million euros would be taxed at 50 percent.

Denmark (55.9 percent), France (55.4 percent) and Austria (55 percent) had the highest statutory income tax rates among European OECD countries in 2020. The Czech Republic (15 percent), Hungary (15 percent) and Estonia (20 percent) had the lowest peak rates.

The level of income at which the highest statutory income tax rates apply also varies significantly between the countries covered. Expressed as a multiple of a country’s average wage, the threshold ranges from 0 in the Czech Republic, Hungary and Latvia to 22.5 in Austria. The Czech Republic, Hungary and Latvia apply their flat income tax to all income generated. Austria’s statutory maximum rate of 55 percent, however, only applies to income over 1 million euros.

Top Statutory Income Tax Rates and Thresholds in European OECD Countries, 2020

European OECD country Top statutory income tax rate Threshold of the highest statutory income tax rate
As a multiple of the average wage In local currency * In Euro * In USD (PPP) *
AustriaAT) 55.0% 22.5 1,097,040 EUR € 1,097,040 $ 1,441,954
Belgium (BE) 52.9% 1.1 EUR 52,848 € 52,848 $ 70,549
Czech Republic (CZ) 15.0% 0.0 CZK 1 0 € $ 0
Denmark (DK) 55.9% 1.3 DKK 577.174 € 77,429 $ 85,763
Estonia (EE) 20.0% 0.4 EUR 6,097 € 6,097 $ 11,540
Finland (FI) 51.2% 1.9 EUR 87,647 € 87,647 $ 102,910
France (FR) 55.4% 15.4 587,696 EUR € 587,696 $ 800,033
Germany (DE) 47.5% 5.4 EUR 282,934 € 282,934 $ 382,578
Greece (GR) 54.0% 11.1 234,111 EUR € 234,111 429,201 USD
Hungary (HU) 15.0% 0.0 HUF 0 0 € $ 0
Iceland (IS) 46.2% 1.3 ISK 11,823,418 € 76,522 $ 84,299
Ireland (IE) 48.0% 1.5 EUR 70,044 € 70,044 $ 86,585
Italy (IT) 47.2% 2.8 83,261 EUR € 83,261 $ 123,255
Latvia (LV) 31.4% 0.0 EUR 1 1 € $ 2
Lithuania (LT) 32.0% 6.3 104,278 EUR € 104,278 $ 231,442
Luxembourg (LU) 45.8% 3.7 215,226 EUR € 215,226 $ 248,426
Netherlands (NL) 49.5% 1.3 72,376 EUR € 72,376 $ 91,340
Norway (NO) 38.2% 1.6 NOK 999,550 € 93,238 $ 100,750
Poland (PL) 32.0% 1.7 PLN 102,594 € 23,091 $ 57,161
Portugal (PT) 53.0% 14.4 280,899 EUR € 280,899 $ 483,677
Slovakia (SK) 25.0% 3.3 EUR 42,914 € 42,914 $ 84,355
Slovenia (SI) 50.0% 4.7 EUR 96,920 € 96,920 $ 169,789
Spain (ES) 43.5% 2.4 65,102 EUR € 65,102 $ 104,083
Sweden (SE) 52.3% 1.1 523,159 SEK € 49,897 $ 59,725
Switzerland (CH) 41.7% 3.5 CHF 301.774 € 281,900 $ 265,696
Turkey (TR) 40.8% 8.6 TRY 639,731 € 79,423 316,448 USD
United Kingdom (GB) 45.0% 3.6 GBP 150,000 € 168,596 $ 207,577

Source: OECD, “Tax database: Table I.7. Highest statutory income tax rates and highest marginal tax rates for employees ”, April 2021, https://www.stats.oecd.org/index.aspx?DataSetCode=TABLE_I7.

* * These thresholds were calculated by multiplying the threshold, expressed as a multiple of the average wage, by the average wage in local currency and in US dollar purchasing power parity (PPP). So they are approximations to the legal thresholds. For non-euro countries, the threshold values ​​were converted into euros using the average exchange rates for 2020 provided by the European Central Bank (ECB).

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