Table 1: TaxA tax is a mandatory payment or charge collected by local, state, and national governments from individuals or businesses to cover the costs of general government services, goods, and activities. Wedge on Average Income, OECD, 2000 – 2012
The Tax WedgeA tax wedge is the difference between total labor costs to the employer and the corresponding net take-home pay of the employee. It is also an economic term that refers to the economic inefficiency resulting from taxes. , or Combined Tax Rate of Personal Income Tax, Payroll, and Employer Portion of Payroll TaxA payroll tax is a tax paid on the wages and salaries of employees to finance social insurance programs like Social Security, Medicare, and unemployment insurance. Payroll taxes are social insurance taxes that comprise 24.8 percent of combined federal, state, and local government revenue, the second largest source of that combined tax revenue. as Percent of Income at the Average Labor Income by OECD Country, 2000 – 2012
| OECD Country |
| Australia |
| Austria |
| Belgium |
| Canada |
| Chile |
| Czech Republic |
| Denmark |
| Estonia |
| Finland |
| France |
| Germany |
| Greece |
| Hungary |
| Iceland |
| Ireland |
| Israel |
| Italy |
| Japan |
| Korea |
| Luxembourg |
| Mexico |
| Netherlands |
| New Zealand |
| Norway |
| Poland |
| Portugal |
| Slovak Republic |
| Slovenia |
| Spain |
| Sweden |
| Switzerland |
| Turkey |
| United Kingdom |
| United States |
| 2000 | 2001 | 2002 | 2003 | 2004 | 2005 | 2006 | 2007 | 2008 | 2009 | 2010 | 2011 | 2012 |
| 30.4% | 27.6% | 28.0% | 28.2% | 28.2% | 28.5% | 27.9% | 27.3% | 26.9% | 27.2% | 26.8% | 26.7% | 27.2% |
| 47.3% | 0.0% | 0.0% | 47.4% | 48.1% | 48.0% | 48.3% | 48.6% | 49.0% | 48.9% | 48.2% | 48.5% | 48.9% |
| 57.1% | 56.7% | 56.3% | 55.7% | 55.4% | 55.5% | 55.5% | 55.6% | 55.9% | 56.0% | 55.9% | 56.1% | 56.0% |
| 33.2% | 32.0% | 32.1% | 32.0% | 32.0% | 31.9% | 31.9% | 31.2% | 31.3% | 30.8% | 30.5% | 30.7% | 30.8% |
| 7.0% | 7.0% | 7.0% | 7.0% | 7.0% | 7.0% | 7.0% | 7.0% | 7.0% | 7.0% | 7.0% | 7.0% | 7.0% |
| 42.6% | 42.6% | 43.0% | 43.2% | 43.5% | 43.7% | 42.5% | 42.9% | 43.4% | 42.4% | 42.1% | 42.6% | 42.4% |
| 44.1% | 43.3% | 42.4% | 42.4% | 41.0% | 40.9% | 41.0% | 41.1% | 40.9% | 38.9% | 38.6% | 38.8% | 38.9% |
| 41.3% | 41.0% | 42.1% | 42.3% | 41.5% | 39.9% | 39.0% | 39.0% | 38.4% | 40.4% | 40.1% | 40.3% | 40.4% |
| 47.8% | 46.4% | 45.9% | 45.0% | 44.5% | 44.6% | 44.0% | 43.9% | 43.8% | 42.5% | 42.3% | 42.3% | 42.5% |
| 49.6% | 49.8% | 49.8% | 49.8% | 49.9% | 50.0% | 50.1% | 49.2% | 49.7% | 50.2% | 49.8% | 49.9% | 50.2% |
| 52.9% | 51.9% | 52.5% | 53.2% | 52.2% | 52.1% | 52.3% | 51.9% | 51.5% | 49.7% | 49.2% | 49.8% | 49.7% |
| 35.2% | 34.7% | 35.1% | 35.2% | 35.8% | 35.2% | 35.8% | 37.0% | 41.0% | 41.9% | 39.1% | 42.4% | 41.9% |
| 54.6% | 55.8% | 53.7% | 50.8% | 51.8% | 51.1% | 52.0% | 54.5% | 54.1% | 49.4% | 46.6% | 49.5% | 49.4% |
| 26.2% | 26.9% | 28.5% | 29.3% | 29.8% | 29.7% | 29.5% | 28.1% | 30.9% | 34.5% | 33.4% | 34.1% | 34.5% |
| 35.2% | 31.3% | 29.7% | 29.8% | 30.7% | 31.0% | 29.2% | 27.2% | 22.3% | 25.9% | 25.8% | 25.8% | 25.9% |
| 29.0% | 29.5% | 30.0% | 27.1% | 25.3% | 24.9% | 23.5% | 24.1% | 21.7% | 19.2% | 19.4% | 19.4% | 19.2% |
| 46.9% | 46.4% | 46.4% | 45.7% | 46.0% | 45.7% | 45.9% | 46.2% | 46.6% | 47.6% | 47.2% | 47.6% | 47.6% |
| 24.8% | 24.9% | 30.5% | 27.4% | 27.3% | 27.7% | 28.8% | 29.3% | 29.5% | 31.2% | 30.2% | 30.8% | 31.2% |
| 16.3% | 16.4% | 16.1% | 16.3% | 17.0% | 17.3% | 18.1% | 19.7% | 20.0% | 21.0% | 20.1% | 20.5% | 21.0% |
| 37.5% | 35.8% | 32.9% | 33.5% | 33.9% | 34.7% | 35.3% | 36.3% | 34.7% | 35.8% | 34.3% | 36.2% | 35.8% |
| 12.6% | 13.2% | 15.8% | 16.8% | 15.3% | 14.7% | 15.0% | 15.9% | 15.1% | 19.0% | 15.5% | 18.7% | 19.0% |
| 39.7% | 37.2% | 37.4% | 37.1% | 38.8% | 38.9% | 38.3% | 38.2% | 39.2% | 38.6% | 38.1% | 38.0% | 38.6% |
| 19.4% | 19.4% | 19.4% | 19.5% | 19.6% | 19.9% | 20.2% | 20.8% | 20.5% | 16.4% | 17.0% | 15.9% | 16.4% |
| 38.6% | 39.2% | 38.6% | 38.1% | 38.1% | 37.2% | 37.4% | 37.5% | 37.6% | 37.6% | 37.3% | 37.6% | 37.6% |
| 38.2% | 38.0% | 38.0% | 38.2% | 38.4% | 38.7% | 39.0% | 38.2% | 34.7% | 35.5% | 34.2% | 34.3% | 35.5% |
| 37.3% | 36.4% | 37.6% | 37.4% | 37.4% | 36.8% | 37.1% | 37.7% | 36.9% | 36.7% | 37.1% | 38.0% | 36.7% |
| 41.9% | 42.5% | 42.1% | 42.5% | 42.2% | 38.0% | 38.3% | 38.4% | 38.8% | 39.6% | 37.9% | 38.8% | 39.6% |
| 46.3% | 46.2% | 46.1% | 46.2% | 46.3% | 45.6% | 45.3% | 43.3% | 42.9% | 42.3% | 42.5% | 42.6% | 42.3% |
| 38.6% | 38.9% | 39.1% | 38.6% | 38.8% | 39.0% | 39.1% | 39.0% | 38.0% | 41.4% | 39.7% | 40.0% | 41.4% |
| 50.1% | 49.1% | 47.8% | 48.2% | 48.4% | 48.1% | 47.8% | 45.3% | 44.8% | 42.8% | 42.8% | 42.8% | 42.8% |
| 21.6% | 21.6% | 21.7% | 21.2% | 20.9% | 20.9% | 20.9% | 21.1% | 21.4% | 21.5% | 21.6% | 21.9% | 21.5% |
| 40.4% | 43.6% | 42.5% | 42.2% | 42.8% | 42.8% | 42.7% | 42.7% | 39.9% | 38.2% | 37.9% | 38.2% | 38.2% |
| 32.6% | 32.2% | 32.3% | 33.8% | 33.9% | 33.9% | 34.0% | 34.1% | 32.8% | 32.3% | 32.6% | 32.7% | 32.3% |
| 30.4% | 30.3% | 30.1% | 29.9% | 29.8% | 29.7% | 29.9% | 29.7% | 30.5% | 29.6% | 30.5% | 29.6% | 29.6% |
Source: OECD Tax Database
Share