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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 (VAT). 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%.[1]

Per country information: income tax bands

Austrian income taxation is determined by §33 of Austrian Income Tax Code (Einkommensteuergesetz - EStG)

Until the end of the year 2020 an additional tax (55%) will affect income of over 1 million €.

The total Finnish income tax includes the income tax dependable on the net salary, employee unemployment payment, and employer unemployment payment. [16][17] The tax rate increases very progressively rapidly at 13 ke/year (from 25% to 48%) 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. [63] [64]

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.

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

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.

  • Personal Allowance: €800 per adult
  • Allowance per child: €1,120

Income tax in the Netherlands (Loonheffing) and social security contributions are combined in one payroll tax. There are no personal tax-free allowances

The latest scales for the tax year 2019. Note that scale 2 and 3 are effectively the same (but have a different proportion of social security to 'loonheffing' ratio). The plan is to merge it into two scales by 2021.:

Without effect income dependent deductions for incomes up to €90,710

Income tax in Portugal depends on the number of people in the household. The taxable income is calculated based on the number of household and marital status.

The above values include the special solidarity income tax.

To the above taxes should be added 11% of social security contribution by the employee.

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

Income tax for the United Kingdom is based on 2019/20 tax bands. The current tax free threshold on earnings is £12,500. The relief is tapered by £1 for every £2 earned over £100,000.

See also

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