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This is a list of the maximum potential tax rates around Europe for certain income brackets. It is focused on three types of taxes: corporate, individual, and value added taxes (VAT). It is not intended to represent the true tax burden to either the corporation or the individual in the listed country.
The quoted income tax rate is, except where noted, the top rate of tax: most jurisdictions have lower rate of taxes for low levels of income. Some countries also have lower rates of corporation tax for smaller companies. In 1980, the top rates of most European countries were above 60%. Today most European countries have rates below 50%. [1]
| Country | Corporate tax | Maximum income tax rate | Standard VAT rate |
|---|---|---|---|
| Albania [2] | 15% | 23% [3] | 20% |
| Andorra | 10% | 10% | 4.5% |
| Armenia [4] | 18% | 22% | 20% |
| Austria | 25% | 55% [5] | 20% [6] (Reduced rates 10% + 13%) [7] |
| Belarus | 18% | 15% | 20% [2] |
| Belgium [8] | 25% (For SME's 20% from 2018 on the first €100,000 profit) [9] | 50% (excluding 13.07% social security paid by the employee and also excluding 32% social security paid by the employer) | 21% (Reduced rates of 6% and 12%) [6] |
| Bosnia and Herzegovina [10] [11] [12] | 10% | 10% | 17% |
| Bulgaria [13] | 10% | 40.8% (10% income tax + additional 12.9% by the employee for social security contributions, i.e. health insurance, pension and unemployment fund); and additional 17.9% by the employer for various social security contributions) [14] | 20% [6] (Reduced rates 9%) [7] |
| Croatia | 18% (Reduced rate 10% for small business) | 15% to 35,4% (depending on the income and municipality) | 25% (Reduced rates 13% + 5%)(Reduced rates 9%) [7] |
| Cyprus | 12.5% | 35% | 19% (Reduced rates 5% + 9%)(Reduced rates 9%) [7] |
| Czech Republic | 21% | 34% (15% or 23% tax, 4,5% health insurance, 6,5% social security) + additional payments by employer (11,5% healthcare, 24,8% social security) | 21% (reduced rate 12%) [6] |
| Denmark | 22% | 56% (avg commune) (including 8% social security paid by the employee but excluding 0.42–1.48% church tax imposed on members of the national Church of Denmark) | 25% (reduced rate 0% on transportation of passengers and newspapers normally published at a rate of more than one issue per month) [6] |
| Estonia | 0% on undistributed profits. 20% CIT on distributed profit. 14% on regular distribution. [15] | 57.8% (20% income tax + 2.4% of unemployment insurance tax, 0.8% paid by employer, 1.6% paid by employee and 33% social security which is paid before gross wage by employer), around 57,8% in total | 20% (reduced rate 9%) [6] |
| Finland | 20% | 67% to 25% depending on the net income and municipality, including 7.8% [16] [17] [18] social insurance fees, employee unemployment payment and employer unemployment payment, which is on average 18% (2018). [16] | 24% [6] [19] (reduced rate of 14% for groceries and restaurants, 10% for books, medicine, transport of passengers and some others) |
| France | 30% (including social contributions) after 2018 ('PFU'), before: 33.3% (36.6% above €3.5M, 15% below €38k) [20] | 49% (45% +4% for annual incomes above €250,000 for single taxpayers or above €500,000 for married couples) [21] + social security and social contribution taxes at various rates, for example 17,2 % for capital gains, interests and dividends. | 20% (reduced rate of 10%, 5.5%, 2.1% and 0% for specific cases like some food, transportation, cultural goods, etc.) [6] [22] |
| Germany | 22.825% (few small villages) to 32.925% (in Munich) depending on the municipality. This includes the 15% CIT, 5.5% solidarity surcharge plus the trade tax payable to the municipality. | 47.475% which includes 45% income tax and 5.5% solidarity surcharge based on the total tax bill for incomes above €256,304. The entry tax rate is 14% for incomes exceeding the basic annual threshold of €9,000. | 19% (reduced rate of 7% applies e.g. on sales of certain foods, books and magazines, flowers and transports) [6] |
| Georgia | 15% | 18% | |
| Greece | 24% | 65.67% (45% for >€40,000+ 7.5% Solidarity Tax for >€40000)+(26.95% Social Security for employees or up to 47.95% for private professionals) | 24% [6] (Reduced rates 13% and 5%) [7] |
| Hungary | 9% | Total: 43.16% Employee: 33.5% of gross salary (Employee expenses altogether of gross salary without children: 15% Income Tax (flat), Social Security: 10% Pension, 3% in cash + 4% in kind healthcare, 1.5% Labor Market contributions) [23] Employer: 17% in addition to gross salary (15.5% Social Tax, 1.5% Training Fund Contribution) [24] | 27% [6] [25] [26] (Reduced rates 18% and 5%) [7] |
| Iceland | 20% [27] | 36.94% from 0 - 834.707 and 46.24% over 834.707 kr (2017) [28] | 24% (12% reduced rate) [27] |
| Ireland | 12.5% for trading income 25% for non-trading income | 40% over €40,000 for single, €49,000 for married taxpayers.Plus USC(Universal Social Charge)4.5% on income up to €70,044 and 8% on balance. Social insurance 4% | 23% [29] |
| Isle of Man | 0% [30] | 20% plus national insurance of under 12.8% [30] | Same as United Kingdom (see below) [31] |
| Italy | 27.9% (24% plus 3.9% municipal) | 45.83% (43% income tax + 2.03% regional income tax + 0.8% municipal income tax) | 22% [6] (Reduced rates 10%, 5%, 4%) [7] |
| Latvia | 20% CIT on distributed profit. 0% on undistributed profits. 15% on small businesses [32] | 20%(income tax) 35.09%(social insurance) [33] Total up to 55.09% | 21% (reduced rates 12% and 0%) [34] |
| Liechtenstein | 12.5% [35] | 28% (max. 8% national and 20% municipal income tax) plus 4% of the taxpayer's net worth is subject to the same rate as wealth tax. 0% on capital gains. | 8% / 2.5% (till 31.12.2017) 7.7% / 2.5% (from 01.01.2018) [36] |
| Lithuania | 15% (5% for small businesses) [37] | 44.27% (effective tax rates: 34.27% social insurance (nominally it is 1.77% payable by employer + 19.5% payable by employee + from 1.8% to 3% optional accumulation of pence), 20% income | 21% (Reduced rates 5%, 9%) [7] |
| Luxembourg | 24.94% (commercial activity); 5.718% on intellectual property income, royalties. | 45.78% (42% income tax + 9% solidarity surcharge calculated on the income tax) [38] | 17% [6] (Reduced rates 3%, 8%, 14%) [7] |
| Republic of North Macedonia [39] | 10% | 37% [40] (includes income tax 10%, mandatory state pension 18%, mandatory public health insurance 7.3%, mandatory unemployment insurance 1.2%, mandatory personal injury insurance 0.5%) | 18% |
| Malta | 35% (6/7 or 5/7 tax refunds gives an effective rate of 5% or 10% for most companies [41] ) | 35% (additional 10% by the employee for social security contributions, i.e. health insurance, pension and education); and additional 10% by the employer for various social security contributions) | 18% [6] (Reduced rates 5%, 7% and 0% for life necessities – groceries, water, prescription medications, medical equipment and supplies, public transport, children's education fees) [7] |
| Monaco | 0% (>75% revenue within Monaco) or 33.33% [42] | ||
| Moldova | 12% or 7% for IT businesses [43] | ||
| Montenegro | 9% [44] | 12.65% (11% income tax + 15% of the income tax bill to the municipality) [44] | 21% [44] |
| Netherlands | 19% for the first €200.000 of profit, 25,8% for the rest. [45] | 49.5% [46] (excluding income dependent bracket discount for incomes up to €98.604 [47] ) | 21% [48] (reduced rate of 9% and 0% for some goods and services) |
| Norway [49] [50] | 22% [51] | 46.4% (53.0% including 14.1% social security contribution by employer. All taxes include 8.2% pension fund payments). | 25% (reduced rate of 15% for groceries, and 10% for transport and culture.) |
| Poland | 19% (Reduced rate 9% for small business since 01.01.2019) | 17% up to 120 000 zł (from 1.01.2022) 32% above 120 000 zł (~25 000 euro) | 23% (reduced rates of 5% and 8%) [6] |
| Portugal | 21% + 3 to 9% depending on profit | 48% + 5% solidarity surcharge + 11% social security (paid by the employee) + 23,75% (social security paid by the company) | 23% (reduced rates 13% and 6%) |
| Romania | Revenue <€1m & at least one employee: 1% of all sales + 8% on dividends Revenue >€1m or no employee: 16% on profit + 8% on dividends | Employee: 41.5% [10% income tax (out of gross minus pension & health deductions), 25% pension contribution (out of gross), 10% health contribution (out of gross)] - Gross incomes below RON 3,600 benefit from personal deductions of up to RON 1,310 from taxable income. Employer: 2.25% (compulsory work insurance) [52] | 19% (reduced rates of 9% and 5%) [53] |
| Russia | 20% | 43% (13.0% income tax, 22.0% mandatory pension fund contribution, 2.9% unemployment insurance, 5.1% mandatory universal health insurance) [54] | 20% |
| Serbia | 15% | 52% (capital gains tax 15%, standard income tax rate 10%, additional contributions by employee: 13% state pension fund, 6.5% state health fund, 0.5% unemployment fund; additional contributions by employer: 11% state pension fund, 6.5% state health fund, 0.5% unemployment; maximum contributions capped (amount changing monthly); additional tax for higher salaries (after 3 times average salary additional 10%, after 6 times average salary additional 15%)), [55] [56] [57] | 20% (10% reduced rate) |
| Slovakia | 21% [58] | 50% (income tax 19% + 25% for the part of annual income greater than €35,022.31; additional contributions at 4% mandatory health insurance by employee and 10% by employer, 9.4% Social Security by employee and 25.2% by employer) | 20% [6] (10% reduced rate) |
| Slovenia [59] | 19% | 50% | 22% [6] (reduced rate 9.5%) – from 1 July 2013 |
| Spain | 25% 4% in the Canary Islands [60] | 45% maximum Income tax rate. Not including employee contribution of 6.35% Social Security tax, 4.7% pension contribution tax, 1.55% unemployment tax, 0.1% worker training tax. Not including employer contribution of 23.6% Social security tax, 5.5% unemployment tax, 3.5% (or more) workers comp tax, worker training tax .06%, 0.2% FOGASA tax (employment tax in case of company bankruptcy). | 21% [6] (reduced rates 10% and 4%) |
| Sweden | 22% (21.4% 2019, 20.6% 2021) | 55.5% [61] (Not including payroll taxes of 31.42% [62] ) | 25% [6] (reduced rates 12% and 6%) |
| Switzerland | 16.55% | 22.5% (Kanton Zug, Gemeinde Walchwil) to 46% (Kanton Geneve), average rate 34%. These taxes do not include social security that is private and not income based (e. ) [63] | 8% / 2.5% (till 31.12.2017) 7.7% / 2.5% (from 01.01.2018 until 31.12.2023) [64] |
| Ukraine | 18% | 41.5% (Income tax 18%, military tax 1.5%, social contribution tax 22%) | 20% |
| United Kingdom | 19% | 47% (45% income tax + 2% National Insurance). Not including Employer's National Insurance payroll tax of 13.8%. In Scotland, the top marginal rate is 49% (47% income tax + 2% NI). For earnings between £100,000 - £125,140 employees pay the 40% higher rate income tax + removal of tax-free personal allowance + 2% NI (effectively a 67% marginal rate). The top tax rate on dividend income is 39.35%. Capital gains top tax rates are 20% for securities and 28% on property gains. National Insurance is not charged on property income so it is only liable to Income Tax at 45% above £125,140. | 20% (reduced rate of 5% for home energy and renovations, 0% for life necessities – groceries, water, prescription medications, medical equipment and supplies, public transport, children's clothing, books and periodicals) [6] |
Austrian income taxation is determined by §33 of Austrian Income Tax Code (Einkommensteuergesetz - EStG)
| Annual Income [€] | Taxation Rate [%] |
|---|---|
| 0 - 12,816 | 0 |
| 12,816 - 20,818 | 20 |
| 20,818 - 34,513 | 30 |
| 34,513 - 66,612 | 41 |
| 66,612 - 99,266 | 48 |
| 99,266 - 1,000,000 | 50 |
| >1,000,000 | 55 |
Until the end of the year 2024 an additional tax (55%) will affect income of over 1 million €.Source
| Annual Income [€] | Taxation Rate [%] |
|---|---|
| 0 – 9050 | 0 |
| 9050 – 22590 | 25 |
| 22590 – 32950 | 40 |
| 32950 – 50410 | 45 |
| >50410 | 50 |
| Annual income [€] | Tax Rate |
|---|---|
| Less than 47,780.21 | 20 |
| More than 47,780.21 | 30 |
The total Finnish income tax includes the income tax dependable on the net salary, employee unemployment payment, and employer unemployment payment. [17] [18] The tax rate increases very progressively rapidly at 13 ke/year (from 25% to 48%) and at 29 ke/year to 55% and eventually reaches 67% at 83 ke/year, while little decreases at 127 ke/year to 65%. The middle-income person will get 44 euros from every 100 euros the employer puts on the work. The GP will then again get from every extra 100 euros that the employer puts on the work only 33 euros. Some sources do not include the employer unemployment payment, for instance Veronmaksajat -organisation. [67] [68]
| Annual income at | Tax rate (including employer unemployment payment) |
|---|---|
| €13,000 | 25% |
| €33,000 | 57% |
| €47,000 | 60% |
| €83,000 | 67% |
| €94,000 | 66% |
| €127,000 | 65% |
Income tax in France depends on the number of people in the household. The taxable income is divided by the number of persons belonging to the household. Each adult counts as one person while the first two children count as half each. From the third child onwards each child counts as one person. Therefore, a household comprising 2 adults and 3 children is considered to be a household of 4 persons for tax purposes.
The rates below do not include the 17% social security contributions.
| Annual income above | Annual income below | Tax rate [69] |
|---|---|---|
| €0 | €5,963 | 0% |
| €5,963 | €11,896 | 5.5% |
| €11,896 | €26,420 | 14% |
| €26,420 | €70,830 | 30% |
| €70,830 | - | 41% |
German income tax comprises 5 income tax bands, with the first two being based on a totally Progressive tax rate and the rest being flat rate. Taxable income is derived after subtracting personal and child allowances from earned income. In addition a number of other deductions may be claimed by German taxpayers.
| Annual income above | Annual income below | Marginal tax rate 2018 [70] |
|---|---|---|
| €0 | €9,000 | 0% |
| €9,000 | €13,996 | 14% − 23.97% |
| €13,996 | €54,949 | 23.97% − 42% |
| €54,949 | €260,532 | 42% |
| €260,532 | - | 45% |
In Germany, married couples are taxed jointly. This means that the tax liability for the couple is twice the amount resulting from the tariff when inserting the average income of both spouses. Due to the progressive tariff, filing jointly uniformly reduces the total tax burden if spouses' incomes differ.
| Annual income Above | Annual income below | Tax rate [71] |
|---|---|---|
| €0 | €15,000 | 23% |
| €15,000 | €28,000 | 27% |
| €28,000 | €55,000 | 38% |
| €55,000 | €75,000 | 41% |
| €75,000 | - | 43% |
Income tax in the Netherlands (Inkomstenbelasting, Box 1) and social security contributions are combined in one payroll tax. There are no personal tax-free allowances; however, there are personal and labor tax credits that reduce the amount of income tax paid.
Prior to 2020, the income tax was assessed within four brackets, which have been simplified to just three (effectively two) as of 2020. As of 2023, the income tax rates are: [72]
| Annual income above | Annual income below | Tax rate (including employee social security) |
|---|---|---|
| €0 | €73,031 | 36.93% |
| €73,031 | - | 49.50%* |
Income tax in Portugal depends on a number of factors, including regional (different tax rates depending if you live in the mainland, the Azores or Madeira regions, marital status and number of dependents.
For simplification purposes, the following is a summary of the major tax brackets.
| Taxable Income | Tax Rate (Mainland) | Tax Rate (Madeira) | Tax Rate (Azores) |
|---|---|---|---|
| Up to €7,091 | 14.5% | 11.6% | 10.15% |
| €7,091 and €10,700 | 23% | 20.7% | 17.25% |
| €10,700 and €20,261 | 28.5% | 26.5% | 21.38% |
| €20,261 and €25,000 | 35% | 33.75% | 28% |
| €25,000 and €36,856 | 37% | 35.87% | 29.6% |
| €36,856 and €80,640 | 45% | 44.95% | 36% |
| Above €80,640 | 48% | 48% | 38.4% |
A solidarity additional tax of 2.5% is applied on income between €80,640 and €250,000. All income above €250,000 is taxed a further 5%.
Spanish income tax includes a personal tax free allowance and an allowance per child. In 2012 a special temporary surcharge was introduced as part of austerity measures to balance the budget. The personal allowance currently stands at €5,151.
| Annual income above | Annual income below | Tax rate (excluding temporary surcharge) | Tax rate (including temporary surcharge) [73] |
|---|---|---|---|
| €0 | €5,150 | 0% | 0% |
| €5,150 | €17,707.20 | 24% | 24.75% |
| €17,707.20 | €33,007.20 | 28% | 30% |
| €33,007.20 | €53,407.20 | 37% | 40% |
| €53,407.20 | €120,000.20 | 43% | 47% |
| €120,000.20 | €175,000.20 | 44% | 49% |
| €175,000.20 | €300,000.20 | 45% | 51% |
| €300,000.20 | - | 45% | 52% |
Income tax for the United Kingdom is based on 2023/24 tax bands. The current tax free threshold on earnings is £12,570. The relief is tapered by £1 for every £2 earned over £100,000, resulting in an effective 60% tax rate for incomes between £100,000 and £125,140.
| Annual income | Tax rate [74] | |
|---|---|---|
| Above | Up to | |
| £0 | £12,570 | 0% |
| £12,570 | £50,270 | 20% |
| £50,270 | £125,140 | 40% |
| £125,140 | — | 45% |
Payroll taxes are taxes imposed on employers or employees, and are usually calculated as a percentage of the salaries that employers pay their employees. By law, some payroll taxes are the responsibility of the employee and others fall on the employer, but almost all economists agree that the true economic incidence of a payroll tax is unaffected by this distinction, and falls largely or entirely on workers in the form of lower wages. Because payroll taxes fall exclusively on wages and not on returns to financial or physical investments, payroll taxes may contribute to underinvestment in human capital, such as higher education.
Income tax in the Netherlands is regulated by the Wet inkomstenbelasting 2001.
Taxation in Ireland in 2017 came from Personal Income taxes, and Consumption taxes, being VAT and Excise and Customs duties. Corporation taxes represents most of the balance, but Ireland's Corporate Tax System (CT) is a central part of Ireland's economic model. Ireland summarises its taxation policy using the OECD's Hierarchy of Taxes pyramid, which emphasises high corporate tax rates as the most harmful types of taxes where economic growth is the objective. The balance of Ireland's taxes are Property taxes and Capital taxes.
In France, taxation is determined by the yearly budget vote by the French Parliament, which determines which kinds of taxes can be levied and which rates can be applied.
Taxation in the Netherlands is defined by the income tax, the wage withholding tax, the value added tax and the corporate tax.
Taxation in Greece is based on the direct and indirect systems. The total tax revenue in 2017 was €47.56 billion from which €20.62 billion came from direct taxes and €26.94 billion from indirect taxes. The total tax revenue represented 39.4% of GDP in 2017. Taxes in Greece are collected by the Independent Authority for Public Revenue.
In Austria, taxes are levied by the state and the tax revenue in Austria was 42.7% of GDP in 2016 according to the World Bank The most important revenue source for the government is the income tax, corporate tax, social security contributions, value added tax and tax on goods and services. Another important taxes are municipal tax, real-estate tax, vehicle insurance tax, property tax, tobacco tax. There exists no property tax. The gift tax and inheritance tax were cancelled in 2008. Furthermore, self-employed persons can use a tax allowance of €3,900 per year. The tax period is set for a calendar year. However, there is a possibility of having an exception but a permission of the tax authority must be received. The Financial Secrecy Index ranks Austria as the 35th safest tax haven in the world.
Taxation in Finland is mainly carried out through the Finnish Tax Administration, an agency of the Ministry of Finance. Finnish Customs and the Finnish Transport and Communications Agency Traficom, also collect taxes. Taxes collected are distributed to the Government, municipalities, church, and the Social Insurance Institution, Kela.
Taxation in Norway is levied by the central government, the county municipality and the municipality. In 2012 the total tax revenue was 42.2% of the gross domestic product (GDP). Many direct and indirect taxes exist. The most important taxes – in terms of revenue – are VAT, income tax in the petroleum sector, employers' social security contributions and tax on "ordinary income" for persons. Most direct taxes are collected by the Norwegian Tax Administration and most indirect taxes are collected by the Norwegian Customs and Excise Authorities.
Taxes in Germany are levied by the federal government, the states (Länder) as well as the municipalities (Städte/Gemeinden). Many direct and indirect taxes exist in Germany; income tax and VAT are the most significant.
Taxes in Spain are levied by national (central), regional and local governments. Tax revenue in Spain stood at 36.3% of GDP in 2013. A wide range of taxes are levied on different sources, the most important ones being income tax, social security contributions, corporate tax, value added tax; some of them are applied at national level and others at national and regional levels. Most national and regional taxes are collected by the Agencia Estatal de Administración Tributaria which is the bureau responsible for collecting taxes at the national level. Other minor taxes like property transfer tax (regional), real estate property tax (local), road tax (local) are collected directly by regional or local administrations. Four historical territories or foral provinces collect all national and regional taxes themselves and subsequently transfer the portion due to the central Government after two negotiations called Concierto and the Convenio. The tax year in Spain follows the calendar year. The tax collection method depends on the tax; some of them are collected by self-assessment, but others follow a system of pay-as-you-earn tax with monthly withholdings that follow a self-assessment at the end of the term.
Taxes in Portugal are levied by both the national and regional governments of Portugal. Tax revenue in Portugal stood at 34.9% of GDP in 2018. The most important revenue sources include the income tax, social security contributions, corporate tax and the value added tax, which are all applied at the national level.
Taxes in Poland are levied by both the central and local governments. Tax revenue in Poland is 33.9% of the country's GDP in 2017. The most important revenue sources include the income tax, Social Security, corporate tax and the value added tax, which are all applied on the national level.
In Latvia, taxes are levied by both national and local governments. Tax revenue stood at 28.1% of the GDP in 2013. In 2023, a decade later, that number fell to 21.77%, as the economy of Latvia grew, the 2013 Latvian economic crisis came to an end, and trading expanded with other Baltic nations. The most important revenue sources include income tax, social security, corporate tax and value added tax, which are all applied on the national level. Income taxes are levied at a flat rate of 23% on all income. A long range of tax allowances is given including a standard allowance of €900 per year and €1980 per year for every dependent.
Taxation in Hungary is levied by both national and local governments. Tax revenue in Hungary stood at 38.4% of GDP in 2017. The most important revenue sources include the income tax, Social security, corporate tax and the value added tax, which are all applied at the national level. Among the total tax income the ratio of local taxes is solely 5% while the EU average is 30%.
Taxes in Croatia are levied by both the central and the regional governments. Tax revenue in Croatia stood at 37.8% of GDP in 2017. The most important revenue sources are income taxes, social security contributions, corporate tax and the value added tax, which are all applied on the national level.
Taxation in Bosnia and Herzegovina includes both federal and local taxes. Tax revenue in Bosnia and Herzegovina stood at 28.6% of GDP in 2013. Most important revenue sources include the income tax, Social Security contributions, corporate tax, and the value added tax, which are all applied on the federal level.
Taxation in Belgium consists of taxes that are collected on both state and local level. The most important taxes are collected on federal level, these taxes include an income tax, social security, corporate taxes and value added tax. At the local level, property taxes as well as communal taxes are collected. Tax revenue stood at 48% of GDP in 2012.
Taxes in Cyprus are levied by both the central and local governments. Tax revenue stood at 39.2% of GDP in 2012. The most important revenue sources are the income tax, social security, value-added tax and corporate tax, and are all collected by the central government.
