Tax rates in Europe
This is a list of the maximum potential tax rates around Europe for certain income brackets. It is focused on three types of taxes: corporate, individual, and value added taxes. It is not intended to represent the true tax burden to either the corporation or the individual in the listed country.
Summary list
The quoted income tax rate is, except where noted, the top rate of tax: most jurisdictions have lower rate of taxes for low levels of income. Some countries also have lower rates of corporation tax for smaller companies. In 1980, the top rates of most European countries were above 60%. Today most European countries have rates below 50%.| Country | Corporate tax | Maximum income tax rate | Standard VAT rate | ||
| Albania | 15% | 23% | 20% | ||
| Andorra | 10% | 10% | 4.5% | ||
| Austria | 25% | 55% | 20% | ||
| Belarus | 18% | 15% | 20% | ||
| Belgium | 29% | 50% | 21% | ||
| Bosnia and Herzegovina | 10% | 10% | 17% | ||
| Bulgaria | 10% | 10% | 20% | ||
| Croatia | 18% | 40% | 25% | ||
| Cyprus | 12.5% | 35% | 19% | ||
| Czech Republic | 19% | 53.5% + 7% solidarity contribution ) | 21% | ||
| Denmark | 22% | 51.95% | 25% | ||
| Estonia | 20% CIT on distributed profit. 14% on regular distribution. 0% on undistributed profits. | 20% around 57,8% in total | 20% | ||
| Finland | 20% | 25% to 67% depending on the net income and municipality, including 7.8% social insurance fees, employee unemplayment payment and employer unemployment payment, which is on average 18%. | 24% | ||
| France | 30% after 2018, before: 33.3% | 49% + social security and social contribution taxes at various rates, for example 17,2 % for capital gains, interests and dividends. | 20% | ||
| Germany | 22.825% to 32.925% depending on the municipality. This includes the 15% CIT, 5.5% solidarity surcharge plus the trade tax payable to the municipality. | 47.475% which includes 45% income tax and 5.5% solidarity surcharge based on the total tax bill for incomes above €256,304. The entry tax rate is 14% for incomes exceeding the basic annual threshold of €9,000. | 19% | ||
| Georgia | 15% | 20% | 18% | ||
| Greece | 28% | 65.67% + | 24% | ||
| Hungary | 9% | 33.5% Employee expenses altogether of gross salary without children: 15% Income Tax, Social Security: 10% Pension, 3% in cash + 4% in kind Health Care, 1.5% Labor Market contributions Employer: 17.5% Social Tax, 1.5% Labour Contribution of the monthly gross salary | 27% | ||
| Iceland | 20% | 36.94% from 0 - 834.707 and 46.24% over 834.707 kr | 24% | ||
| Ireland | 12.5% for trading income 25% for non-trading income | 40% over €34,550 for single, €42,800 for married taxpayers.Plus USC4.5% on income up to €50,170 and 8% on balance. Social insurance 4% | 23% | ||
| Isle of Man | 0% | 20% plus national insurance of under 12.8% | Same as United Kingdom | ||
| Italy | 27.9% | 45.83% | 22% | ||
| Latvia | 20% CIT on distributed profit. 0% on undistributed profits. 15% on small businesses | 20% 35.09% Total up to 55.09% | 21% | ||
| Liechtenstein | 12.5% | 28% plus 4% of the taxpayer's net worth is subject to the same rate as wealth tax. 0% on capital gains. | 8% / 2.5% 7.7% / 2.5% | ||
| Lithuania | 15% | 44.27%, 20% income | 21% | ||
| Luxembourg | 24.94% ; 5.718% on intellectual property income, royalties. | 43.6% | 17% | ||
| Republic of North Macedonia | 10% | 37% | 18% | ||
| Malta | 35% | 35% | 18% | ||
| Monaco | 0% or 33.33% | ||||
| Montenegro | 9% | 12.65% | 17% | ||
| Netherlands | 25% above €200,000 of profit and otherwise 16.5% | 51.75% | 21% | ||
| Norway | 22% | 46.4%. | 25% | ||
| Poland | 19% | 17% up to 85 528 zł 32% above 85 528 zł | 23% | ||
| Portugal | 21% + 3 to 9% depending on profit | 48% + 5% solidarity surcharge + 11% social security + 23,75% | 23% | ||
| Romania | Revenue <€1m: 1% of all sales Revenue >€1m: 16% on profit | Employee: 41.5% - Gross incomes below RON 3,600 benefit from personal deductions of up to RON 1,310 from taxable income. Employer: 2.25% | 19% | ||
| Russia | 20% | 43% | 20% | ||
| Serbia | 15% | 52% ; additional tax for higher salaries ), | 20% | ||
| Slovakia | 22% | 50% | 20% | ||
| Slovenia | 19% | 50% | 22% – from 1 July 2013 | ||
| Spain | 25% 4% in the Canary Islands | 45% maximum Income tax rate. Not including employee contribution of 6.35% Social Security tax, 4.7% pension contribution tax, 1.55% unemployment tax, 0.1% worker training tax. Not including employer contribution of 23.6% Social security tax, 5.5% unemployment tax, 3.5% workers comp tax, worker training tax.06%, 0.2% FOGASA tax. | 21% | ||
| Sweden | 22% | 55.5% including social security paid by employer | 25% | ||
| Switzerland | 16.55% | 22.5% to 46%, average rate 34%. These taxes do not include social security that is private and not income based | 8% / 2.5% 7.7% / 2.5% | 47% - theoretically, NI could reach 12%, but in practice it's never combined with the higher income tax rate For earnings between £100,000 - £123,000 employees pay the 40% higher rate tax + removal of tax free personal allowance + 2% NI 45% income tax on annual income above £150,000, 40% between £43,001 and £150,000, 20% between £0 and £43,000. There is also a National Insurance levy between 2% and 13.8% for employees and self-employed individuals but capital gains and dividend income is not subject to NI. The first £11,000 is tax-free if your annual income is below £100,000. Capital gains is taxed at 10% for basic rate taxpayers and 20% for higher and additional rate taxpayers. Dividend income from UK companies is taxed at 7.5% for basic rate taxpayers, 32.5% for higher rate taxpayers and 38.1% for additional rate taxpayers. | 20% |
Per country information: income tax bands
Austria
Austrian income taxation is determined by §33 of Austrian Income Tax Code| Annual Income | Taxation Rate |
| 0 - 11,000 | 0 |
| 11,001-18,000 | 25 |
| 18,001-31,000 | 35 |
| 31,001-60,000 | 42 |
| 60,001 - 90,000 | 48 |
| >90,000 | 50 |
Until the end of the year 2020 an additional tax will affect income of over 1 million €.
Denmark
Finland
The total Finnish income tax includes the income tax dependable on the net salary, employee unemployment payment, and employer unemployment payment.The tax rate increases very progressively rapidly at 13 ke/year and at 29 ke/year to 55% and eventually reaches 67% at 83 ke/year, while little decreases at 127 ke/year to 65%.
The middle-income person will get 44 euros from every 100 euros the employer puts on the work.
The GP will then again get from every extra 100 euros that the employer puts on the work only 33 euros.
Some sources do not include the employer unemployment payment, for instance Veronmaksajat -organisation.
| Annual income at | Tax rate |
| €13,000 | 25% |
| €33,000 | 57% |
| €47,000 | 60% |
| €83,000 | 67% |
| €94,000 | 66% |
| €127,000 | 65% |
France
Income tax in France depends on the number of people in the household. The taxable income is divided by the number of persons belonging to the household. Each adult counts as one person while the first two children count as half each. From the third child onwards each child counts as one person. Therefore, a household comprising 2 adults and 3 children is considered to be a household of 4 persons for tax purposes.The rates below do not include the 17% social security contributions.
| Annual income Above | Annual income below | Tax rate |
| €0 | €5,963 | 0% |
| €5,963 | €11,896 | 5.5.% |
| €11,896 | €26,420 | 14% |
| €26,420 | €70,830 | 30% |
| €70,830 | - | 41% |
Germany
German income tax comprises 5 income tax bands, with the first two being based on a totally Progressive tax rate and the rest being flat rate. Taxable income is derived after subtracting personal and child allowances from earned income. In addition a number of other deductions may be claimed by German taxpayers.- Personal allowance: €9,000 per adult
- Child allowance: €7,428 per child
| Annual income above | Annual income below | Marginal tax rate 2018 |
| €0 | €9,000 | 0% |
| €9,000 | €13,996 | 14% − 23.97% |
| €13,996 | €54,949 | 23.97% − 42% |
| €54,949 | €260,532 | 42% |
| €260,532 | - | 45% |
In Germany, married couples are taxed jointly. This means that the tax liability for the couple is twice the amount resulting from the tariff when inserting the average income of both spouses. Due to the progressive tariff, filing jointly uniformly reduces the total tax burden if spouses' incomes differ.
Italy
- Personal Allowance: €800 per adult
- Allowance per child: €1,120
| Annual income Above | Annual income below | Tax rate |
| €0 | €15,000 | 23% |
| €15,000 | €28,000 | 27% |
| €28,000 | €55,000 | 38% |
| €55,000 | €75,000 | 41% |
| €75,000 | - | 43% |
Netherlands
Income tax in the Netherlands and social security contributions are combined in one payroll tax. There are no personal tax-free allowancesThe latest scales for the tax year 2019. Note that scale 2 and 3 are effectively the same. The plan is to merge it into two scales by 2021.:
| Annual income Above | Annual income below | Tax rate |
| €0 | €20,384 | 36,65% |
| €20,385 | €34,300 | 38,1% |
| €34,301 | €68,507 | 38,1%* |
| €68,508 | - | 51,75%* |
Without effect income dependent deductions for incomes up to €90,710
Portugal
Income tax in Portugal depends on a number of factors, including regionalA solidarity additional tax of 2.5% is applied on income between €80,640 and €250,000. All income above €250,000 is taxed a further 5%.
Spain
Spanish income tax includes a personal tax free allowance and an allowance per child. In 2012 a special temporary surcharge was introduced as part of austerity measures to balance the budget.The personal allowance currently stands at €5,151.
- 1st child €1,836
- 2nd child €2,040
- 3rd child €3,672
- 4th & subs €4,182
| Annual income above | Annual income below | Tax rate | Tax rate |
| €0 | €5,150 | 0% | 0% |
| €5,150 | €17,707.20 | 24% | 24.75% |
| €17,707.20 | €33,007.20 | 28% | 30% |
| €33,007.20 | €53,407.20 | 37% | 40% |
| €53,407.20 | €120,000.20 | 43% | 47% |
| €120,000.20 | €175,000.20 | 44% | 49% |
| €175,000.20 | €300,000.20 | 45% | 51% |
| €300,000.20 | - | 45% | 52% |