Top Personal Income Tax Rates in Europe

February 28, 2023

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, then each additional euro of income over €1 million would be taxed at 50 percent.

Top Personal Income Tax Rates in Europe 2023 Income Tax Rates or Individual Income Tax Rates

Denmark (55.9 percent), France (55.4 percent), and Austria (55 percent) had the highest top statutory personal income tax rates in Europe among OECD countries in 2022. Hungary (15 percent), Estonia (20 percent), and the Czech Republic (23 percent) had the lowest top statutory personal income top rates in Europe.

Top Personal Income Tax Rates in Europe
European OECD Country Top Statutory Personal Income Tax Rate
Austria (AT) 55.0%
Belgium (BE) 53.5%
Czech Republic (CZ) 23.0%
Denmark (DK) 55.9%
Estonia (EE) 20.0%
Finland (FI) 53.4%
France (FR) 55.4%
Germany (DE) 47.5%
Greece (GR) 44.0%
Hungary (HU) 15.0%
Iceland (IS) 46.3%
Ireland (IE) 48.0%
Italy (IT) 47.2%
Latvia (LV) 31.0%
Lithuania (LT) 32.0%
Luxembourg (LU) 45.8%
Netherlands (NL) 49.5%
Norway (NO) 39.5%
Poland (PL) 36.0%
Portugal (PT) 53.0%
Slovakia (SK) 25.0%
Slovenia (SI) 50.0%
Spain (ES), Valencia 54.0%
Sweden (SE) 52.3%
Switzerland (CH) 44.8%
Turkey (TR) 40.8%
United Kingdom (GB) 45.0%
Source: PwC, “Worldwide Tax Summaries,” accessed Feb. 15, 2023, taxsummaries.pwc.com.

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A 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.

A tax bracket is the range of incomes taxed at given rates, which typically differ depending on filing status. In a progressive individual or corporate income tax system, rates rise as income increases. There are seven federal individual income tax brackets; the federal corporate income tax system is flat.