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These Are The Nations With The Highest (And Lowest) Marginal Income Tax Rates

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These Are The Nations With The Highest (And Lowest) Marginal Income Tax Rates

It’s tax filing time for quite a few countries, as their financial year comes to end.

How differently do countries tax their citizens? Visual Capitalist’s Pallavi Rao took a look at the top marginal individual income tax rates of nearly 150 countries to compare and contrast differences.

Data for this map is sourced from PwC’s Worldwide Tax Summaries, updated between Aug 2024–Feb 2025.

Of course there are limitations to the data. Only the highest portion of an individual’s income is taxed at this rate, and brackets vary significantly on how much money falls into that pool.

Furthermore, property, sales, or other indirect taxes are not included. It also omits state, provincial, and municipal taxes

Ranked: Countries by their Highest Personal Income Tax Rate

Western European countries on average have the highest headline income tax rates in the world.

Per the source, seven countries have a 50%+ top rate, and six of those are in Europe, led by Denmark at 55.9%.

Rank Country ISO Code Headline Personal Income Tax Rate
1 đŸ‡©đŸ‡° Denmark DNK 55.9
2 đŸ‡«đŸ‡® Finland FIN 55
3 đŸ‡±đŸ‡º Luxembourg LUX 51
4 đŸ‡¦đŸ‡¹ Austria AUT 50
5 đŸ‡§đŸ‡ª Belgium BEL 50
6 đŸ‡®đŸ‡± Israel ISR 50
7 đŸ‡¸đŸ‡® Slovenia SVN 50
8 đŸ‡³đŸ‡± Netherlands NLD 49.5
9 đŸ‡µđŸ‡¹ Portugal PRT 48
10 đŸ‡³đŸ‡´ Norway NOR 47.4
11 đŸ‡ªđŸ‡¸ Spain ESP 47
12 đŸ‡¨đŸ‡­ Switzerland CHE 45.5
13 đŸ‡¦đŸ‡º Australia AUS 45
14 đŸ‡¨đŸ‡³ China CHN 45
15 đŸ‡©đŸ‡ª Germany DEU 45
16 đŸ‡«đŸ‡· France FRA 45
17 đŸ‡¬đŸ‡§ UK GBR 45
18 đŸ‡¯đŸ‡µ Japan JPN 45
19 đŸ‡°đŸ‡· South Korea KOR 45
20 đŸ‡¿đŸ‡¦ South Africa ZAF 45
21 đŸ‡¬đŸ‡· Greece GRC 44
22 đŸ‡®đŸ‡¹ Italy ITA 43
23 đŸ‡¸đŸ‡³ Senegal SEN 43
24 đŸ‡µđŸ‡¬ Papua New Guinea PNG 42
25 đŸ‡¨đŸ‡± Chile CHL 40
26 đŸ‡¨đŸ‡© DRC COD 40
27 đŸ‡¨đŸ‡¬ Congo COG 40
28 đŸ‡¬đŸ‡¦ Gabon GAB 40
29 đŸ‡¬đŸ‡¾ Guyana GUY 40
30 đŸ‡®đŸ‡ª Ireland IRL 40
31 đŸ‡²đŸ‡· Mauritania MRT 40
32 đŸ‡³đŸ‡¨ New Caledonia NCL 40
33 đŸ‡¹đŸ‡· TĂ¼rkiye TUR 40
34 đŸ‡¹đŸ‡¼ Taiwan TWN 40
35 đŸ‡ºđŸ‡¬ Uganda UGA 40
36 đŸ‡¨đŸ‡´ Colombia COL 39
37 đŸ‡®đŸ‡³ India IND 39
38 đŸ‡³đŸ‡¿ New Zealand NZL 39
39 đŸ‡¨đŸ‡² Cameroon CMR 38.5
40 đŸ‡²đŸ‡¦ Morocco MAR 38
41 đŸ‡ªđŸ‡¨ Ecuador ECU 37
42 đŸ‡³đŸ‡¦ Namibia NAM 37
43 đŸ‡ºđŸ‡¸ U.S. USA 37
44 đŸ‡¿đŸ‡² Zambia ZMB 37
45 đŸ‡ºđŸ‡¾ Uruguay URY 36
46 đŸ‡­đŸ‡· Croatia HRV 35.4
47 đŸ‡¦đŸ‡· Argentina ARG 35
48 đŸ‡¨đŸ‡¾ Cyprus CYP 35
49 đŸ‡©đŸ‡¿ Algeria DZA 35
50 đŸ‡ªđŸ‡¹ Ethiopia ETH 35
51 đŸ‡¬đŸ‡­ Ghana GHA 35
52 đŸ‡®đŸ‡© Indonesia IDN 35
53 đŸ‡°đŸ‡ª Kenya KEN 35
54 đŸ‡²đŸ‡½ Mexico MEX 35
55 đŸ‡²đŸ‡¹ Malta MLT 35
56 đŸ‡µđŸ‡° Pakistan PAK 35
57 đŸ‡µđŸ‡­ Philippines PHL 35
58 đŸ‡¹đŸ‡­ Thailand THA 35
59 đŸ‡¹đŸ‡³ Tunisia TUN 35
60 đŸ‡»đŸ‡³ Vietnam VNM 35
61 đŸ‡»đŸ‡ª Venezuela VEN 34
62 đŸ‡¨đŸ‡¦ Canada CAN 33
63 đŸ‡±đŸ‡» Latvia LVA 33
64 đŸ‡µđŸ‡· Puerto Rico PRI 33
65 đŸ‡¸đŸ‡¿ Eswatini SWZ 33
66 đŸ‡¨đŸ‡® CĂ´te d’Ivoire CIV 32
67 đŸ‡±đŸ‡¹ Lithuania LTU 32
68 đŸ‡²đŸ‡¿ Mozambique MOZ 32
69 đŸ‡µđŸ‡± Poland POL 32
70 đŸ‡®đŸ‡¸ Iceland ISL 31.35
71 đŸ‡§đŸ‡© Bangladesh BGD 30
72 đŸ‡¯đŸ‡² Jamaica JAM 30
73 đŸ‡¯đŸ‡´ Jordan JOR 30
74 đŸ‡±đŸ‡¨ Saint Lucia (assumed “Saint”) KNA 30
75 đŸ‡²đŸ‡¾ Malaysia MYS 30
76 đŸ‡³đŸ‡® Nicaragua NIC 30
77 đŸ‡µđŸ‡ª Peru PER 30
78 đŸ‡·đŸ‡¼ Rwanda RWA 30
79 đŸ‡¸đŸ‡» El Salvador SLV 30
80 đŸ‡¹đŸ‡© Chad TCD 30
81 đŸ‡¹đŸ‡¿ Tanzania TZA 30
82 đŸ‡§đŸ‡§ Barbados BRB 28.5
83 đŸ‡§đŸ‡· Brazil BRA 27.5
84 đŸ‡¨đŸ‡» Cabo Verde CPV 27.5
85 đŸ‡ªđŸ‡¬ Egypt EGY 27.5
86 đŸ‡¦đŸ‡´ Angola AGO 25
87 đŸ‡¦đŸ‡¿ Azerbaijan AZE 25
88 đŸ‡§đŸ‡¼ Botswana BWA 25
89 đŸ‡¨đŸ‡· Costa Rica CRI 25
90 đŸ‡©đŸ‡´ Dominican Republic DOM 25
91 đŸ‡¬đŸ‡® Gibraltar GIB 25
92 đŸ‡¬đŸ‡¶ Equatorial Guinea GNQ 25
93 đŸ‡­đŸ‡³ Honduras HND 25
94 đŸ‡±đŸ‡¦ Laos LAO 25
95 đŸ‡±đŸ‡§ Lebanon LBN 25
96 đŸ‡²đŸ‡² Myanmar MMR 25
97 đŸ‡µđŸ‡¦ Panama PAN 25
98 đŸ‡¸đŸ‡° Slovakia SVK 25
99 đŸ‡¹đŸ‡¹ Trinidad & Tobago TTO 25
100 đŸ‡³đŸ‡¬ Nigeria NGA 24
101 đŸ‡¸đŸ‡¬ Singapore SGP 24
102 đŸ‡¦đŸ‡± Albania ALB 23
103 đŸ‡¨đŸ‡¿ Czechia CZE 23
104 đŸ‡±đŸ‡® Liechtenstein LIE 22.4
105 đŸ‡®đŸ‡² Isle of Man IMN 22
106 đŸ‡¦đŸ‡² Armenia ARM 20
107 đŸ‡ªđŸ‡ª Estonia EST 20
108 đŸ‡¬đŸ‡ª Georgia GEO 20
109 đŸ‡¬đŸ‡¬ Guernsey GGY 20
110 đŸ‡¯đŸ‡ª Jersey JEY 20
111 đŸ‡°đŸ‡­ Cambodia KHM 20
112 đŸ‡²đŸ‡¬ Madagascar MDG 20
113 đŸ‡²đŸ‡³ Mongolia MNG 20
114 đŸ‡²đŸ‡º Mauritius MUS 20
115 đŸ‡·đŸ‡¸ Serbia SRB 20
116 đŸ‡¸đŸ‡ª Sweden SWE 20
117 đŸ‡ºđŸ‡¦ Ukraine UKR 18
118 đŸ‡­đŸ‡° Hong Kong HKG 16
119 đŸ‡­đŸ‡º Hungary HUN 15
120 đŸ‡®đŸ‡¶ Iraq IRQ 15
121 đŸ‡²đŸ‡ª Montenegro MNE 15
122 đŸ‡µđŸ‡¸ Palestinian Territories PSE 15
123 đŸ‡·đŸ‡º Russia RUS 15
124 đŸ‡§đŸ‡´ Bolivia BOL 13
125 đŸ‡±đŸ‡¾ Libya LBY 13
126 đŸ‡²đŸ‡´ Macau MAC 12
127 đŸ‡²đŸ‡© Moldova MDA 12
128 đŸ‡ºđŸ‡¿ Uzbekistan UZB 12
129 đŸ‡§đŸ‡¬ Bulgaria BGR 10
130 đŸ‡§đŸ‡¦ Bosnia & Herzegovina BIH 10
131 đŸ‡¬đŸ‡± Greenland GRL 10
132 đŸ‡°đŸ‡¿ Kazakhstan KAZ 10
133 đŸ‡²đŸ‡° North Macedonia MKD 10
134 đŸ‡µđŸ‡¾ Paraguay PRY 10
135 đŸ‡·đŸ‡´ Romania ROU 10
136 đŸ‡¹đŸ‡± Timor-Leste TLS 10
137 đŸ‡½đŸ‡° Kosovo XKX 10
138 đŸ‡¬đŸ‡¹ Guatemala GTM 7
139 đŸ‡¦đŸ‡ª UAE ARE 0
140 đŸ‡§đŸ‡­ Bahrain BHR 0
141 đŸ‡§đŸ‡² Bermuda BMU 0
142 đŸ‡°đŸ‡¾ Cayman Islands CYM 0
143 đŸ‡°đŸ‡¼ Kuwait KWT 0
144 đŸ‡´đŸ‡² Oman OMN 0
145 đŸ‡¶đŸ‡¦ Qatar QAT 0
146 đŸ‡¸đŸ‡¦ Saudi Arabia SAU 0

Note: Denmark’s figure includes a mandatory labor market tax for all wage earners in the country. Scotland pays a different rate than the rest of the UK.

But as always, the fine print contains more useful information. For example, in Denmark, the top bracket for employment income is 15%. However, this combines with the bottom bracket tax and mandatory healthcare and municipal contributions to raise the income tax ceiling. Finally, income from shares and dividends also attracts a high rate of 42%.

In the U.S., the 37% headline rate is only applicable to income above $609,000 for individuals. Of course, U.S. states tax their residents as well.

And finally, several Middle Eastern countries—also oil producers—don’t charge an income tax.

The Pros and Cons of Western Europe’s High Tax Rates

Individual income taxes often make up the largest source of government revenues.

Thus, higher taxes help fund extensive public services like healthcare, education, and social security.

It can also potentially reduce income inequality by redistributing wealth, supporting lower-income citizens, and fostering social cohesion.

However, less disposable income leads to less consumer spending. And better-skilled workers with higher earnings may relocate, leading to brain drain from the region.

High earners can avoid taxes by routing their incomes or businesses through low tax jurisdictions. Check out Ranked: The World’s Top 10 Tax Havens to see how much offshore wealth is parked around the globe.

Tyler Durden
Sun, 03/09/2025 – 07:35

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