Personal income tax rates in Europe: Where do workers pay the highest and lowest taxes?
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In Europe, how much of your gross salary do you actually pay in taxes? It depends on several factors such as your income level, whether you're part of a dual-earner couple, and whether you have dependent children.
The OECD's Taxing Wages 2025 report breaks down tax rates using several indicators. Euronews focuses on income tax as a share of gross wage earnings. This shows how much of your salary goes to income tax. Social security contributions are not included in this calculation.
Single person without children
Among the 27 countries covered in the report — including 22 EU members, the UK, three EFTA countries, and Turkey — income tax as a percentage of gross wage earnings for a single person without children in 2024 ranged from 6.2% in Poland to 35.7% in Denmark.
These figures apply to individuals earning 100% of the average wage in their respective countries. If a person earns more or less than the average, their income tax also changes — as we explore below.
Among Europe's top five economies, Italy had the highest income tax rate at 20.9%. The others clustered around 16%: Germany and France (both 16.7%), Spain (16%), and the UK (15.5%).
Income tax rates are generally higher in the Nordic countries. With the exception of Sweden (16.1%), all had rates around 20% or higher. Similar rates were also observed in Belgium and Ireland.
In addition to Poland, five other countries had income tax rates of 12% or below: Slovenia, Greece, Switzerland, Slovakia, and Czechia.
One-earner couple with two children
For one-earner couples with two dependent children, income tax ranged from -12.8% in Slovakia to 32% in Denmark. Germany also recorded a negative rate of -0.1%, placing both countries in the refund category.
A negative tax rate shows that taxes were refunded rather than deducted. This refund is mostly separate from standard family allowances.
The top four countries with the highest income tax rates in this category were all Nordic nations. Sweden also exceeded both the OECD and EU-22 averages.
Among Europe's five largest economies, income tax rates for one-earner couples with two children were significantly lower in France and Spain compared to single individuals without children — dropping from around 16% to approximately 10% in both countries.
Income tax rates were also below 5% in Switzerland, Slovenia, Portugal, Czechia, and Poland.
Two-earner couple with two children
For two-earner couples with two children, income tax rates ranged from 1.6% in Slovakia to 35.7% in Denmark.
This table makes it easy to see how income tax varies based on the number of earners in a household and the presence of children, reflecting each country's tax policy.
Generally, single individuals without children pay the highest income tax. There isn't a single country where they pay less than either of the two household types with children.
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However, in several countries, the income tax rate is the same across all three household types. These include Estonia, Finland, Greece, Lithuania, Norway, Sweden, Turkey, and the UK.
On the other hand, this does not mean that take-home pay ratios are also the same. Social security contributions and family allowances create differences in overall net income.
Key trends in personal income tax across Europe
Denmark has the highest income tax burden across all household types. Belgium and Iceland also report relatively high tax levels, particularly for single individuals.
Slovakia and Germany show unusual patterns, with negative income tax rates for one-earner couples with children. Slovakia's strong negative rate reflects a policy aimed at supporting families.
Poland and Czechia are among the countries with the lowest income tax rates across all three options.
Nordic countries consistently have the highest taxes regardless of household type. Western Europe follows, with moderately high rates, especially for single earners.
Eastern European countries tend to have the lowest income tax levels overall.
Income tax increases with income level
To examine how income tax rates vary by income level, we focus on single individuals without children. This comparison includes three income levels:
67% of the average wage in each country
100% of the average wage
167% of the average wage
Among the 27 countries analysed, all except Hungary show a progressive tax structure — where income tax rates rise as income increases.
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For instance, in the EU — which includes 22 member states in the report — the average income tax rates for these three income levels were 12.1%, 17.2%, and 23.1%, respectively.
When comparing those earning 100% of the average wage to those earning 167%, Sweden shows the highest increase in income tax — a 78% jump, rising from 16.1% to 28.7%.
The increase was also above 50% in the Netherlands, the UK, Poland, Germany, Greece, Portugal, and Austria.
In contrast, the smallest increases—below 10%—were recorded in Estonia, Lithuania, and Latvia, with no change in Hungary.
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