<P> 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 . </P> <P> 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% . </P> <Table> <Tr> <Th> Country </Th> <Th> Corporate tax </Th> <Th> Maximum income tax rate </Th> <Th> Standard VAT rate </Th> </Tr> <Tr> <Td> Albania </Td> <Td> 15% </Td> <Td> 23% </Td> <Td> 20% </Td> </Tr> <Tr> <Td> Austria </Td> <Td> 25% </Td> <Td> 55% </Td> <Td> 20% (Reduced rates 10% + 13%) </Td> </Tr> <Tr> <Td> Belarus </Td> <Td> 18% </Td> <Td> 15% </Td> <Td> 20% </Td> </Tr> <Tr> <Td> Belgium </Td> <Td> 29% (25% from 2020 . For SME's 20% from 2018 on the first € 100,000 profit) (7) </Td> <Td> 50% (excluding 13.07% social security paid by the employee and also excluding 32% social security paid by the employer) </Td> <Td> 21% (Reduced rates of 6% and 12%) </Td> </Tr> <Tr> <Td> Bosnia and Herzegovina </Td> <Td> 10% </Td> <Td> 41 - 43% (Depending on administrative entity) </Td> <Td> 17% </Td> </Tr> <Tr> <Td> Bulgaria </Td> <Td> 10% </Td> <Td> 10% (additional 12.9% by the employee for social security contributions, i.e. health insurance, pension and unemployment fund); and additional 17.9% by the employer for various social security contributions) </Td> <Td> 20% (Reduced rates 9%) </Td> </Tr> <Tr> <Td> Croatia </Td> <Td> 18% (Reduced rate 12% for small business) </Td> <Td> 40% (excluding 35.2% total sum of insurances levied on income) </Td> <Td> 25% (Reduced rates 13% + 5%) (Reduced rates 9%) </Td> </Tr> <Tr> <Td> Cyprus </Td> <Td> 12.5% </Td> <Td> 35% </Td> <Td> 19% (Reduced rates 5% + 9%) (Reduced rates 9%) </Td> </Tr> <Tr> <Td> Czech Republic </Td> <Td> 19% </Td> <Td> 53.5% (15% income tax + 6.5% by employee + 25% by employer (2.3% healthcare + 21.5% social security + 1.2% state policy of employment) + 7% solidarity contribution (assuming income is above 1 277 328 CZK per year)) </Td> <Td> 21% (reduced rates of 15% and 10%) </Td> </Tr> <Tr> <Td> Denmark </Td> <Td> 22% </Td> <Td> 55.56% (including 8% social security paid by the employee but excluding 0.42--1.48% church tax imposed on members of the national Church of Denmark) </Td> <Td> 25% (reduced rate 0% on transportation of passengers and newspapers normally published at a rate of more than one issue per month) </Td> </Tr> <Tr> <Td> Estonia </Td> <Td> 20% CIT on distributed profit . 14% on regular distribution . 0% on undistributed profits . </Td> <Td> 20% (+ 2.4% of unemployment insurance tax, 0.8% paid by employer, 1.6% paid by employee and 33% social security which is paid before gross wage by employer) around 57, 8% in total </Td> <Td> 20% (reduced rate 9%) </Td> </Tr> <Tr> <Td> Finland </Td> <Td> 20% </Td> <Td> 25% to 67% depending on the net income and municipality, including 7.8% social insurance fees, employee unemplayment payment and employer unemployment payment, which is on average 18% (2018). </Td> <Td> 24% (reduced rate of 14% for groceries and restaurants, 10% for books, medicine, transport of passengers and some others) </Td> </Tr> <Tr> <Td> France </Td> <Td> 33.3% (36.6% above € 3.5 M, 15% below € 38k) </Td> <Td> 49% (45% + 4% for annual incomes above € 250,000 for single taxpayers or above € 500,000 for married couples) + social security and social contribution taxes at various rates, for example 17, 2% for capital gains, interests and dividends . </Td> <Td> 20% (reduced rate of 10%, 5.5%, 2.1% and 0% for specific cases like some food, transportation, cultural goods, etc .) </Td> </Tr> <Tr> <Td> Germany </Td> <Td> 22.825% (few small villages) to 32.925% (in Munich) depending on the municipality . This includes the 15% CIT, 5.5% solidarity surcharge plus the trade tax payable to the municipality . </Td> <Td> 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 . </Td> <Td> 19% (reduced rate of 7% applies e.g. on sales of certain foods, books and magazines, flowers and transports) </Td> </Tr> <Tr> <Td> Georgia </Td> <Td> 15% </Td> <Td> 20% </Td> <Td> 18% </Td> </Tr> <Tr> <Td> Greece </Td> <Td> 29% </Td> <Td> 65.67% (45% for> € 40,000 + 7.5% Solidarity Tax for> € 40000) + (26.95% Social Security for employees or up to 47.95% for private professionals) </Td> <Td> 24% (Reduced rates 13% and 5%) </Td> </Tr> <Tr> <Td> Hungary </Td> <Td> 9% </Td> <Td> 15% (additional contributions at 10% Social Security by employee and 22% Social Security by employer and health care 7% by employer) </Td> <Td> 27% (Reduced rates 18% and 5%) </Td> </Tr> <Tr> <Td> Iceland </Td> <Td> 20% </Td> <Td> 36.94% from 0 - 834.707 and 46.24% over 834.707 kr (2017) </Td> <Td> 24% (12% reduced rate) </Td> </Tr> <Tr> <Td> Ireland </Td> <Td> 12.5% for trading income <P> 25% for non-trading income </P> </Td> <Td> 40% over € 34,550 for single, € 42,800 for married taxpayers . </Td> <Td> 23% </Td> </Tr> <Tr> <Td> Isle of Man </Td> <Td> 0% </Td> <Td> 20% plus national insurance of under 12.8% </Td> <Td> Same as United Kingdom (see below) </Td> </Tr> <Tr> <Td> Italy </Td> <Td> 27.9% (24% plus 3.9% municipal) </Td> <Td> 45.83% (43% income tax + 2.03% regional income tax + 0.8% municipal income tax) </Td> <Td> 22% (Reduced rates 10%, 5%, 4%) </Td> </Tr> <Tr> <Td> Latvia </Td> <Td> 20% CIT on distributed profit . 0% on undistributed profits . </Td> <Td> 31.4% </Td> <Td> 21% (reduced rates 12% and 0%) </Td> </Tr> <Tr> <Td> Liechtenstein </Td> <Td> 12.5% (2.5% on IP and royalties) </Td> <Td> 28% (max. 8% national and 20% municipal income tax) plus 4% of the taxpayer's net worth is subject to the same rate as wealth tax . 0% on capital gains . </Td> <Td> 8% / 2.5% (till 31.12. 2017) <P> 7.7% / 2.5% (from 01.01. 2018) </P> </Td> </Tr> <Tr> <Td> Lithuania </Td> <Td> 15% (5% for small businesses with up to 10 employees and up to € 300,000 income) </Td> <Td> 55.2% (effective tax rates: 25.5% social insurance (nominally it is 31.2% payable by employer + 3% payable by employee), 15.6% income (nominal rates are 6% for health insurance nominal plus 15% direct income)), applies to annual income of over € 15,000 annual tax allowance for children is € 2,400 (per child) </Td> <Td> 21% (Reduced rates 5%, 9%) </Td> </Tr> <Tr> <Td> Luxembourg </Td> <Td> 29.22% (commercial activity); 5.718% on intellectual property income, royalties . </Td> <Td> 43.6% (40% income tax + 9% solidarity surcharge calculated on the income tax) </Td> <Td> 17% (Reduced rates 3%, 8%, 14%) </Td> </Tr> <Tr> <Td> Republic of Macedonia </Td> <Td> 10% </Td> <Td> 37% (includes income tax 10%, mandatory state pension 18%, mandatory public health insurance 7.3%, mandatory unemployment insurance 1.2%, mandatory personal injury insurance 0.5%) </Td> <Td> 18% </Td> </Tr> <Tr> <Td> Malta </Td> <Td> 35% (6 / 7 or 5 / 7 tax refunds gives an effective rate of 5% or 10% for most companies) </Td> <Td> 35% </Td> <Td> 18% (Reduced rates 5%, 7%) </Td> </Tr> <Tr> <Td> Monaco </Td> <Td> 0% (> 75% revenue within Monaco) or 33.33% </Td> <Td> </Td> <Td> </Td> </Tr> <Tr> <Td> Montenegro </Td> <Td> 9% </Td> <Td> 12.65% (11% income tax + 15% of the income tax bill to the municipality) </Td> <Td> 17% </Td> </Tr> <Tr> <Td> Netherlands </Td> <Td> 25% above € 200,000 of profit and otherwise 20% The Netherlands makes generous secret tax deals with huge multinationals . </Td> <Td> 52% (55.6% including income dependent tax reduction for incomes between € 67,072 - 121,972) </Td> <Td> 21% (reduced rate of 6% and 0% for some goods and services) </Td> </Tr> <Tr> <Td> Norway </Td> <Td> 23% (22% in 2019) </Td> <Td> 46.6% (53.2% including 14.1% social security contribution by employer . All taxes include 8.2% pension fund payments). </Td> <Td> 25% (reduced rate of 15% for groceries, and 10% for transport and culture .) </Td> </Tr> <Tr> <Td> Poland </Td> <Td> 19% </Td> <Td> 32% </Td> <Td> 23% (reduced rates of 5% and 8%) </Td> </Tr> <Tr> <Td> Portugal </Td> <Td> 21% </Td> <Td> 82.75% where 48% + 3% special contribution Income tax and (additional contributions at 11% Social Security by employee and 23.75% Social Security by employer) </Td> <Td> 23% (reduced rates 13% and 6%) </Td> </Tr> <Tr> <Td> Romania </Td> <Td> Revenue <€ 1m: 1% of all sales Revenue> € 1m: 16% on profit </Td> <Td> Employee: 41.5% (10% income tax (out of gross minus pension & health deductions), 25% pension contribution (out of gross), 10% health contribution (out of gross)) - Gross incomes below RON 3,600 benefit from personal deductions of up to RON 1,310 from taxable income . Employer: 2.25% (compulsory work insurance) </Td> <Td> 19% (reduced rates of 9% and 5%) </Td> </Tr> <Tr> <Td> Russia </Td> <Td> 20% </Td> <Td> 13% straight tax + 29% social tax (paid by company) + social insurance from 0, 5% to 2, 5% depending on traumatism risk . In total ca . 43% . </Td> <Td> 18% </Td> </Tr> <Tr> <Td> Serbia </Td> <Td> 15% </Td> <Td> 52% (capital gains tax 15%, standard income tax rate 10%, additional contributions by employee: 13% state pension fund, 6.5% state health fund, 0.5% unemployment fund; additional contributions by employer: 11% state pension fund, 6.5% state health fund, 0.5% unemployment; maximum contributions capped (amount changing monthly); additional tax for higher salaries (after 3 times average salary additional 10%, after 6 times average salary additional 15%)), </Td> <Td> 20% </Td> </Tr> <Tr> <Td> Slovakia </Td> <Td> 22% </Td> <Td> 50% (income tax 19% + 25% for the part of annual income greater than € 35,022.31; additional contributions at 4% mandatory health insurance by employee and 10% by employer, 9.4% Social Security by employee and 25.2% by employer) </Td> <Td> 20% (10% reduced rate) </Td> </Tr> <Tr> <Td> Slovenia </Td> <Td> 22% </Td> <Td> 50% </Td> <Td> 22% (reduced rate 9.5%)--from 1 July 2013 </Td> </Tr> <Tr> <Td> Spain </Td> <Td> 25% </Td> <Td> 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% (or more) workers comp tax, worker training tax . 06%, 0.2% FOGOSA tax (employment tax in case of company bankruptcy). </Td> <Td> 21% (reduced rates 10% and 4%) </Td> </Tr> <Tr> <Td> Sweden </Td> <Td> 22% (21.4% 2019, 20.6% 2021) </Td> <Td> 69, 8% including social security paid by employer </Td> <Td> 25% (reduced rates 12% and 6%) </Td> </Tr> <Tr> <Td> Switzerland </Td> <Td> 16.55% </Td> <Td> 22.5% (Kanton Zug, Gemeinde Walchwil) to 46% (Kanton Geneve), average rate 34% . These taxes do not include social security that is private and not income based (e.) </Td> <Td> 8% / 2.5% (till 31.12. 2017) <P> 7.7% / 2.5% (from 01.01. 2018 </P> </Td> </Tr> <Tr> <Td> Ukraine </Td> <Td> 18% </Td> <Td> 17% </Td> <Td> 20% </Td> </Tr> <Tr> <Td> United Kingdom </Td> <Td> 19% (17% from 2020) </Td> <Td> 47% (45% income tax + 2% NI) - theoretically, NI could reach 12%, but in practice it's never combined with the higher income tax rate <P> 62% for earnings between £ 100,000 - £ 123,000 (40% higher rate tax + removal of tax free personal allowance + 2% NI) </P> <P> 45% (additional rate) income tax on annual income above £ 150,000, 40% (higher rate) between £ 43,001 and £ 150,000, 20% (basic rate) between £ 0 and £ 43,000 . There is also a National Insurance levy between 2% and 13.8% for employees and self - employed individuals but capital gains and dividend income is not subject to NI . The first £ 11,000 is tax - free if your annual income is below £ 100,000 . </P> <P> Capital gains is taxed at 10% (or 18% on residential property) for basic rate taxpayers and 20% (or 28% on residential property) for higher and additional rate taxpayers . Dividend income from UK companies is taxed at 7.5% for basic rate taxpayers, 32.5% for higher rate taxpayers and 38.1% for additional rate taxpayers . </P> </Td> <Td> 20% (reduced rate of 5% for home energy and renovations, 0% for life necessities--groceries, water, prescription medications, medical equipment and supplies, public transport, children's clothing, books and periodicals) </Td> </Tr> </Table> <Tr> <Th> Country </Th> <Th> Corporate tax </Th> <Th> Maximum income tax rate </Th> <Th> Standard VAT rate </Th> </Tr>

Who pays the most income tax in europe