Reliance on Individual Income Tax Revenue in Europe

May 2, 2019

Today’s map shows the extent to which European countries rely on individual income tax revenue, measured as a share of total tax revenue.

According to a recent report on tax revenue sources, individual income taxes in 2017 were the third most important tax revenue source in Europe (27 countries covered), at an average of 22.9 percent of total tax revenue. Only consumption taxes (32.8 percent) and social insurance taxes (29.7 percent) were on average larger sources of tax revenue.

Europe individual income tax revenue, reliance on individual income tax europe

Denmark relied the most on revenue from individual income taxes, at 53.4 percent. This is partially because Denmark uses a share of its individual income tax revenue for its social programs instead of levying a social insurance tax dedicated to fund these programs. Iceland and Ireland had the second and third highest reliance on individual income taxes, at 38.5 percent and 31.4 percent, respectively.

Slovakia (10.3 percent), the Czech Republic (11.6 percent), and Lithuania (13 percent) relied the least on individual income tax revenue. All three instead raised approximately 75 percent of their total tax revenue from social insurance taxes and consumption taxes combined.

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