Top Personal Income Tax Rates in Europe May 6, 2021 Elke Asen Elke Asen Explore the latest data Most countries’ personal income taxes have a progressive structure, meaning that the tax rate paid by individuals increases as they earn higher wages. The highest tax rate individuals pay differs significantly across European OECD countries—as shown in today’s map. The top statutory personal income tax rate applies to the share of income that falls into the highest tax bracket. For instance, if a country has five tax brackets, and the top income tax rate of 50 percent has a threshold of €1 million, each additional euro of income over €1 million would be taxed at 50 percent. Denmark (55.9 percent), France (55.4 percent), and Austria (55 percent) had the highest top statutory personal income tax rates among European OECD countries in 2020. The Czech Republic (15 percent), Hungary (15 percent), and Estonia (20 percent) had the lowest top rates. The income level at which the top statutory personal income tax rates apply also varies significantly across 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 personal income tax on all income earned. In contrast, Austria’s top statutory rate of 55 percent only applies to income above €1 million. Top Statutory Personal Income Tax Rates and Thresholds in European OECD Countries, 2020 European OECD Country Top Statutory Personal Income Tax Rate Threshold of the Top Statutory Personal Income Tax Rate As a Multiple of the Average Wage In National Currency* In Euros* In USD (PPP)* Austria (AT) 55.0% 22.5 EUR 1,097,040 €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 EUR 587,696 €587,696 $800,033 Germany (DE) 47.5% 5.4 EUR 282,934 €282,934 $382,578 Greece (GR) 54.0% 11.1 EUR 234,111 €234,111 $429,201 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 EUR 83,261 €83,261 $123,255 Latvia (LV) 31.4% 0.0 EUR 1 €1 $2 Lithuania (LT) 32.0% 6.3 EUR 104,278 €104,278 $231,442 Luxembourg (LU) 45.8% 3.7 EUR 215,226 €215,226 $248,426 Netherlands (NL) 49.5% 1.3 EUR 72,376 €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 EUR 280,899 €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 EUR 65,102 €65,102 $104,083 Sweden (SE) 52.3% 1.1 SEK 523,159 €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 United Kingdom (GB) 45.0% 3.6 GBP 150,000 €168,596 $207,577 Source: OECD, “Tax Database: Table I.7. Top statutory personal income tax rates and top marginal tax rates for employees,” April 2021, https://www.stats.oecd.org/index.aspx?DataSetCode=TABLE_I7. * These thresholds have been calculated by multiplying the threshold expressed as a multiple of the average wage with the average wage expressed in the national currency and in US$ Purchasing Power Parity (PPP). Thus, they are approximations of the statutory thresholds. For non-Euro countries, the thresholds were converted into euros using the average 2020 exchange rates provided by the European Central Bank (ECB). Stay informed on the tax policies impacting you. Subscribe to get insights from our trusted experts delivered straight to your inbox. Subscribe Share Tweet Share Email Topics Center for Global Tax Policy Data European Union (EU) Global Tax Maps High-Income Taxpayers, Progressivity, and Inequality Individual and Consumption Taxes Individual Income and Payroll Taxes Individual Tax Expenditures, Credits, and Deductions
