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Top Personal Income Tax Rates in Europe


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.

Top statutory personal income tax rates in Europe 2021

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).

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