Top Income Tax Rates in Europe: OECD and Beyond

Top Income Tax Rates in Europe: OECD and Beyond

In OECD-member European countries, the average maximum income tax rate stands at 42.8%, with the highest rates found in Denmark (55.9%), France (55.4%), and Austria (55%). Meanwhile, the lowest rates are in Hungary (15%), Estonia (20%), and Czechia (23%).

European countries outside the OECD often feature lower maximum rates, frequently implementing flat tax systems. The lowest rates are seen in Bulgaria and Romania (10%), followed by Moldova (12%), Ukraine (19.5%), and Georgia (20%).

Denmark is preparing for significant changes to its income tax system by 2026. Under a new three-tier structure, high earners with annual incomes exceeding 2,588,300 Danish kroner could face a marginal tax rate as high as 60.5%, marking a notable shift for the country’s wealthiest residents.

Data as of February 2024.