THE HIGHEST INCOME TAX

The high standard of living in different countries is usually accompanied by a complex mechanism of taxation and strict control on the part of state authorities over the performance by citizens of their duties in terms of payment of taxes and other mandatory payments. Countries with the largest economies in the world, such as the U.S., China, Japan, and Germany, usually have high tax rates.

The highest income tax

In six European Union member states – Austria, Belgium, Denmark, the Netherlands, Slovenia and Sweden – the maximum income tax rate is equal to or higher than 50 percent. Plus in Finland, if you add up the national and municipal rates, the income tax will also be higher than 50%. In general, taxes in the countries of Northern and Western Europe are very high. In fact, so is the level of European wages.

Next, find out what country has the highest income tax in the world in 2021.

COUNTRIES WITH THE HIGHEST INCOME TAX IN THE WORLD

COUNTRY MAXIMAL INCOME TAX RATE (%)
1. Sweden 57.2
2. Finland 56.95
3. Denmark 56.5
4. Japan 55.95
5. Austria 55
6. Netherlands 51.75
7. Belgium 50
8. Israel 50
9. Slovenia 50
10. Portugal 48

Important. In the United States, the maximum federal income tax rate is 37%. However, in some states with local/city rates, the income tax rate exceeds 50%. For example, in California the rate is 51.8%.

The highest income tax in the world in 2021 is in Sweden at 57.2% (maximum rate).

Note. Until 2019 the country with the highest income tax in the world was Aruba. It is a small island within the Kingdom of the Netherlands, located in the southern Caribbean Sea. The progressive income tax rate here ranged from 7 to 58.95%. Today the maximum is 52%.

In conclusion, we note that in many countries of the world, mostly Middle Eastern states with large oil reserves – Bahrain, UAE, Oman, Qatar, Kuwait and some others, income tax is not charged at all, i.e. there is a zero rate.

Add comment


Security code
Refresh

© 2021 WageCentre.com. All Rights Reserved.