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% |
| Armenia | 18% | 20% | 20% |
| Austria | 25% | 55% | 20% |
| Belarus | 18% | 15% | 20% |
| Belgium | 25% | 50% | 21% |
| Bosnia and Herzegovina | 10% | 10% | 17% |
| Bulgaria | 10% | 10% is 32.7% to 33.4%, of which 13.78% is payable by the employee and 18.92% to 19.62% is payable by the employer. | 20% |
| Croatia | 18% | 15% to 35,4% | 25% |
| Cyprus | 12.5% | 35% | 19% |
| Czech Republic | 21% | 34% + additional payments by employer | 21% |
| Denmark | 22% | 56% | 25% |
| Estonia | 0% on undistributed profits. 20% CIT on distributed profit. 14% on regular distribution. | 57.8%, around 57,8% in total | 22% |
| Finland | 20% | 67% to 25% depending on the net income and municipality, including 7.8% social insurance fees, employee unemployment payment and employer unemployment payment, which is on average 18%. | 25.5% |
| 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% | 18% | |
| Greece | 24% | 65.67% + | 24% |
| Hungary | 9% | Total: 43.16% Employee: 33.5% of gross salary Employer: 17% in addition to 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 €40,000 for single, €49,000 for married taxpayers.Plus USC4.5% on income up to €70,044 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. | 45.78% | 17% |
| Malta | 35% | 35% | 18% |
| Monaco | 0% or 33.33% | - | - |
| Moldova | 12% or 7% for IT businesses | ||
| Montenegro | 9% | 12.65% | 21% |
| Netherlands | 19% for the first €200.000 of profit, 25,8% for the rest. | 49.5% | 21% |
| North Macedonia | 10% | 37% | 18% |
| Norway | 22% | 46.4%. | 25% |
| Poland | 19% | 12% up to 120 000 PLN minus tax-reducing amount of 3600 PLN 32% above 120 000 PLN, with 10,800 PLN for the first 120 000 PLN + 32% of the excess over 120 000 PLN 36% on the surplus above 1,000,000 PLN of total taxable income Pension insurance: 9.76% of the salary base. Disability insurance: 1.5% of the salary base. Sickness insurance: 2.45% of the salary base, fully paid by the employee. Health insurance: 9% of the salary base, fully paid by the employee. The annual assessment base for retirement and disability insurance contributions in a given calendar year may not exceed the amount corresponding to thirty times the forecasted average monthly salary in the national economy for that calendar year. In 2024, 234,720.00 PLN - the amount of the annual limit for the base. | 23% |
| Portugal | 21% + 3 to 9% depending on profit | 48% + 5% solidarity surcharge + 11% social security + 23,75% | 23% |
| Romania | Revenue <€1m & at least one employee: 1% of all sales + 8% on dividends Revenue >€1m or no employee: 16% on profit + 8% on dividends | 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 | 21% | 50% | 23% |
| 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 | 20.6% | 55.5% | 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% 8.1% / 2.6% |
| Ukraine | 18% | 41.5% | 20% |
| United Kingdom | 25% | 47%. Not including Employer's National Insurance payroll tax of 13.8%. In Scotland, the top marginal rate is 49%. For earnings between £100,000 - £125,140 employees pay the 40% higher rate income tax + removal of tax-free personal allowance + 2% NI. The top tax rate on dividend income is 39.35%. Capital gains top tax rates are 20% for securities and 28% on property gains. National Insurance is not charged on property income so it is only liable to Income Tax at 45% above £125,140. | 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 - 12,816 | 0 |
| 12,816 - 20,818 | 20 |
| 20,818 - 34,513 | 30 |
| 34,513 - 66,612 | 41 |
| 66,612 - 99,266 | 48 |
| 99,266 - 1,000,000 | 50 |
| >1,000,000 | 55 |
Until the end of the year 2024 an additional tax will affect income of over 1 million €.
Belgium
| Annual Income | Taxation Rate |
| 0 – 9050 | 0 |
| 9050 – 22590 | 25 |
| 22590 – 32950 | 40 |
| 32950 – 50410 | 45 |
| >50410 | 50 |
Croatia
| Annual income | Tax Rate |
| Less than 47,780.21 | 20 |
| More than 47,780.21 | 30 |
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 allowances; however, there are personal and labor tax credits that reduce the amount of income tax paid.Prior to 2020, the income tax was assessed within four brackets, which have been simplified to just three as of 2020. As of 2023, the income tax rates are:
| Annual income above | Annual income below | Tax rate |
| €0 | €73,031 | 36.93% |
| €73,031 | - | 49.50%* |
- Income-dependent deductions and tax credits apply to incomes up to €98,604.
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 | - | 47% | 52% |