The Countries with the Highest Income Taxes

When it comes to income taxes, some nations take a significantly larger share of earnings than others. Scandinavian and Western European countries dominate the list, with top marginal rates exceeding 50%—reflecting their robust social welfare systems. Meanwhile, other developed nations impose high taxes but with varying brackets and surcharges.

Here are the top 20 countries with the highest income tax rates, including base rates and additional surcharges as of May 2025 according to PwC:

1. Denmark – 55.9% (including AM tax)

2. France – 55.4% *(45% base + surtaxes/social charges)*

3. Austria – 55% (drops to 50% after 2025)

4. Finland – Up to ~55% (progressive rates)

5. Spain – Up to 54% *(47% national + regional surcharges)*

6. Belgium – 50% *(+ communal taxes up to 9%)*

7. Slovenia – 50%

8. Sweden – Up to ~52.3% (including municipal tax)

9. Portugal – Up to 48% *(+ solidarity surtax up to 6%)*

10. Netherlands – 49.8%

11. Japan – 47.1% *(45% + 2.1% surtax)*

12. Germany – 45% (+ solidarity surcharge)

13. Australia – 45%

14. South Korea – 45%

15. Greece – 44%

16. Italy – 43%

17. Luxembourg – 42% *(+ 9% solidarity tax)*

18. Ireland – 40%

19. Canada – Up to ~54% (federal + provincial)

20. Iceland – 46.3% *(31.35% + municipal tax)*

Key Takeaways

Denmark, France, and Austria lead with rates above 55%, factoring in social contributions.
Nordic nations (Finland, Sweden, Iceland) maintain high taxes to fund universal welfare programs.
Canada and Belgium have hidden surcharges, pushing effective rates higher than base numbers suggest.
The U.S. (not listed) has a top federal rate of 37%, but state taxes can push it above 50% in places like California.

A Note: This content is for informational purposes only and should not be considered financial, legal, or tax advice. The tax rates provided, compiled by PricewaterhouseCoopers, are based on publicly available data. These figures represent headline Personal Income Tax (PIT) rates and may include surcharges, but do not reflect final effective tax burdens due to deductions, exemptions, or regional variations (e.g., Spain’s autonomous regions). Jurisdictions in active conflict or severe unrest are excluded. Always consult a tax professional or local authorities for specific advice.

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