Top 10 Countries With Highest Tax Rate

Tax is often a burden for most of us and we always think about ways to reduce the amount of tax charged on our income. We also have a tendency of complaining about the high tax rate. However, based on where you live, it is possible that people in other countries may be paying a much higher tax rate. To know if your country’s taxation rates are high or low, here’s a quick look at top ten countries in the world with highest individual tax rate.

Aruba – An island country, part of the Kingdom of the Netherlands, Aruba is located in the southern Caribbean Sea. The individual income tax rate in Aruba is in the range of minimum 7% and maximum 58.95%.

Sweden – A Nordic country in Northern Europe, Sweden’s individual tax rate is in the range of 32% to 57%. The max tax slab of 57% comprises average municipality income tax of 32% and state income tax of 25%.

Finland – A Nordic country sharing its land borders with Russia, Sweden and Norway, Finland’s individual tax rate is in the range of 7.71% to 56.85%. The max tax slab comprises national tax of 31.75%, municipal tax of 23.5% and church tax of 2.1%.

Japan – An East Asian island country, Japan’s individual tax rate is in the range of 15.10% to 55.94%. The max tax rate comprises 45.94% national tax and 10% local tax.

Denmark – A Nordic nation in Northern Europe, Denmark’s individual income tax rate is in the range of 39.86% to 55.86%.

Austria – A landlocked East Alpine country located in Central Europe, Austria’s individual income tax rate is in the range of 0% to 55%.

Ireland – Located in north-western Europe, Ireland’s individual income tax rate is in the range of 20% to 52%. The max tax slab of 52% comprises incomes tax of 40%. People with income above €70,000 have to pay 12% additional as social insurance contributions.

Spain – Located in Southwestern Europe, Spain’s individual income tax rate is in the range of 0% to 52%. People with income below €12,000 do not have to pay any taxes. In mainland, tax rate is 45%, whereas residents in the Chartered Community of Navarre have to pay 52%.

United States – Individual tax rate in United States is in the range of 10% to 51.8%. The highest tax rate is applicable in San Francisco, comprising federal tax of 37%, state tax of 13.3% and city tax of 1.5%.

Belgium – Located in western Europe, Belgium’s individual tax rate is in the range of 25% to 50%.

As is evident, some of the world’s most prosperous countries have the highest individual tax rates. It’s not surprising because individual taxes are an important source of revenue for the government. These contributions power a country’s economy, which includes everything from industrial development to infrastructure development, healthcare, education, etc. So the next time you think that you are being forced to pay high taxes, just think about people in these countries.