Top Personal Income Tax Rates in Europe
Denmark (55.9 percent), France (55.4 percent), and Austria (55 percent) have the highest top statutory personal income tax rates among European OECD countries.
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Our EU tax policy team regularly provides accessible, data-driven insights from sources such as the European Commission, the Organisation for Economic Co-Operation and Development (OECD), and others.
Tax Data by Country
Get facts about taxes in your country and around the world.
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2023 VAT Rates in Europe
The EU countries with the highest standard VAT rates are Hungary (27 percent), Croatia, Denmark, and Sweden (all at 25 percent). Luxembourg levies the lowest standard VAT rate at 16 percent, followed by Malta (18 percent), Cyprus, Germany, and Romania (all at 19 percent).
2023 Corporate Income Tax Rates in Europe
Taking into account central and subcentral taxes, Portugal has the highest corporate tax rate in Europe at 31.5 percent, followed by Germany and Italy at 29.8 percent and 27.8 percent, respectively
All EU Tax Data
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What European Countries Are Doing about Windfall Profit Taxes
It’s unlikely these implemented and proposed windfall taxes will achieve their goals of addressing high gas and energy prices and raising additional revenues. They would more likely raise prices, penalize domestic production, and punitively target certain industries without a sound tax base.
Net Operating Loss Carryforward and Carryback Provisions in Europe
Carryover tax provisions help businesses “smooth” their risk and income, making the tax code more neutral across investments and over time.
Inflation and Europe’s Personal Income Taxes
With continued concerns over inflation, individuals may be wondering how their tax bills will be impacted. Less than half of OECD countries in Europe automatically adjust income tax brackets for inflation every year.
Patent Box Regimes in Europe
Patent box regimes (also referred to as intellectual property, or IP, regimes) provide lower effective tax rates on income derived from IP. Most commonly, eligible types of IP are patents and software copyrights. Currently, 13 of the 27 EU member states have a patent box regime.
What European Countries Are Doing about Digital Services Taxes
About half of all European OECD countries have either announced, proposed, or implemented a digital services tax.
Beer Taxes in Europe
’Tis the season to crack open a cold one. Ahead of International Beer Day on August 5th, let’s take a minute to discover how much of your cash is actually going toward the cost of a brew with this week’s tax map, which explores excise duties on beer.
Gas Taxes in Europe
The Netherlands has the highest gas tax in the European Union, at €0.82 per liter ($3.69 per gallon). Italy applies the second highest rate at €0.73 per liter ($3.26 per gallon), followed by Finland at €0.72 per liter ($3.24 per gallon).
Tax Burden on Labor in Europe
To make the taxation of labor more efficient, policymakers should understand the inputs into the tax wedge, and taxpayers should understand how their tax burden funds government services.
Carbon Taxes in Europe
In recent years, several countries have taken measures to reduce carbon emissions, including instituting environmental regulations, emissions trading systems, and carbon taxes. In 1990, Finland was the world’s first country to introduce a carbon tax.
Cigarette Taxes in Europe
Ireland and France levy the highest excise duties on cigarettes in the EU, at €8.85 ($10.47) and €6.88 ($8.13) per 20-cigarette pack, respectively.
Wealth Taxes in Europe
Only three European OECD countries levy a net wealth tax, namely Norway, Spain, and Switzerland.
Integrated Tax Rates on Corporate Income in Europe
In most European OECD countries, corporate income is taxed twice, once at the entity level and once at the shareholder level.
Tax Subsidies for R&D Expenditures in Europe
Many countries incentivize business investment in research and development (R&D), intending to foster innovation. A common approach is to provide direct government funding for R&D activity. However, a significant number of jurisdictions also offers R&D tax incentives.
Capital Gains Tax Rates in Europe
In many countries, investment income, such as dividends and capital gains, is taxed at a different rate than wage income. Denmark levies the highest top capital gains tax among European OECD countries, followed by Norway, Finland, and France.
Corporate Income Tax Rates in Europe
Portugal, Germany and France have the highest corporate tax rates in Europe. How does your country compare?
Top Personal Income Tax Rates in Europe
Denmark (55.9 percent), France (55.4 percent), and Austria (55 percent) have the highest top statutory personal income tax rates among European OECD countries.
2022 VAT Rates in Europe
The VAT is a consumption tax assessed on the value added in each production stage of a good or service. Every business along the value chain receives a tax credit for the VAT already paid. The end consumer does not, making it a tax on final consumption.
Comparing Europe’s Tax Systems: Cross-Border Tax Rules
Cross-border tax rules define how income earned abroad and by foreign entities are taxed domestically, making them an important element of each country’s tax code.
Comparing Europe’s Tax Systems: Property Taxes
According to the 2021 International Tax Competitiveness Index, Switzerland has the best-structured consumption tax among OECD countries while Poland has the worst-structured consumption tax code.