Money & government • Around the world

How do taxes compare?

A country does not have just one tax rate. The answer depends on your pay, family, where you live, and which taxes you count.

Start with the same kind of worker. Then look at taxes on shopping—and what public services help pay for.

Three numbers that tell different stories

Out of a worker’s pay

Income tax plus the worker’s required public social-insurance payments, as a share of pay before tax.

Including the employer

The “tax wedge” also counts employer taxes and contributions. It uses total employer labor cost, not just wages.

When the family changes

Tax credits and cash benefits can change the result for parents. A family with one earner differs from one with two.

These measures come from the OECD, an organization that compares countries’ economies. Definitions and tables.

Compare the same kind of worker

2025 data, published in 2026. Each worker earns their own country’s average wage. That is not the same dollar salary everywhere, and it is not the middle (median) wage.

Read the column labels: The first rate is a share of gross pay. The other two are shares of employer labor cost. Do not add them together. These are model households, not averages of everyone’s tax return.

38 countries shown

On smaller screens, swipe the table sideways. The OECD average stays visible as a reference.

Worker taxes • 2025 • Percent (%)
CountryFrom gross pay
Single, no children
Including employer
Single, no children
Including employer
Married, one earner, two children
Australia23.5%27.9%21.2%
Austria32.5%47.1%33.3%
Belgium39.5%52.5%36.9%
Canada25.6%32.1%22.1%
Chile7.1%7.5%4.9%
Colombia0.0% is the OECD result for this worker—not missing data. Required private pension and insurance payments are excluded. The negative family result means counted cash benefits exceed counted taxes.0.0%0.0%-4.8%
Costa Rica9.8%27.7%27.7%
Czechia21.3%41.2%31.9%
Denmark35.3%35.8%26.6%
Estonia23.2%42.6%37.0%
Finland30.7%42.5%38.7%
France28.0%47.2%39.1%
Germany38.7%49.3%34.9%
Greece26.1%39.3%37.5%
Hungary33.5%41.2%31.5%
Iceland27.2%31.5%19.2%
Ireland25.1%32.6%19.0%
Israel21.4%26.1%21.4%
Italy28.6%45.8%34.3%
Japan22.6%33.1%28.4%
South Korea16.5%24.8%14.0%
Latvia26.0%40.1%29.8%
Lithuania38.7%39.8%23.7%
Luxembourg32.0%40.2%20.7%
Mexico13.2%21.7%21.7%
Netherlands27.9%35.9%28.5%
New Zealand20.8%20.8%11.4%
Norway28.1%36.4%31.4%
Poland24.4%35.0%14.2%
Portugal24.9%39.3%27.5%
Slovak Republic24.3%42.7%24.0%
Slovenia36.2%45.3%33.4%
Spain23.5%41.4%36.8%
Sweden22.6%41.1%36.8%
Switzerland18.1%23.0%10.8%
Türkiye29.3%40.3%40.3%
United Kingdom23.1%32.4%28.8%
United StatesUses Detroit, Michigan, for state and local tax rules. Your own state and city may differ.24.3%30.0%19.6%
OECD average25.1%35.1%26.2%

Source: OECD Taxing Wages 2026, Tables 1.3 and 1.4. Both household examples have one worker earning 100% of the national average wage. Family tax wedges subtract counted cash benefits. Figures are rounded to one decimal place.

Download worker comparison (CSV)

Why does Colombia show zero—and a negative number?

Those are published results, not unknown values. The single worker in this example owes no counted tax. Required private pension and insurance payments fall outside this measure. For the family, counted cash benefits exceed counted taxes, making the net result negative. It does not mean Colombia has no taxes.

The U.S. example uses Detroit, Michigan. State and city rules affect the result. The U.S. figure is not a federal-only rate or a prediction for every American. See the U.S. assumptions.

A top tax rate is not the rate on all your pay

In a tax-bracket system, income is divided into layers. A higher rate applies only to the layer in that bracket. Your overall rate can be much lower. Deductions and credits can change the bill too. Source: https://www.irs.gov/filing/federal-income-tax-rates-and-brackets explanation.

A made-up example

Suppose the first $10,000 of taxable income is taxed at 10%, and the next $10,000 at 20%.

$1,000 + $2,000 = $3,000 in tax. On $20,000 of taxable income, that is a 15% overall rate—not 20%. This example teaches the math; it is not a country’s actual tax schedule.

A table of top rates alone cannot tell us what an average worker pays. It also needs the income where each top rate begins and whether local taxes are included.

Taxes when you spend money

VAT means value-added tax. GST means goods and services tax. Both are taxes on purchases. The standard rate does not apply to every item; food, medicine or other goods may have special rules.

Keep shopping taxes separate. A 20% VAT applies to a taxable purchase’s price before tax, not to your whole salary. An item priced at $100 before a 20% tax costs $120. The tax is $20—not 20% of the final $120 price.
Selected standard VAT/GST rates • Sources checked October 17, 2026
CountryStandard rate or systemKeep in mind
United StatesNo national VATState and local sales taxes can still apply. Source
Canada5% federal GSTProvincial taxes can add more. Combined HST is 13%, 14% or 15% in participating provinces. Source
United Kingdom20%Standard rate; some goods have lower rates or are exempt. Source
Australia10%GST; some goods and services are GST-free. Source
Germany19%Standard rate; reduced rates, exemptions and regional rules may apply. Source
France20%Standard rate; reduced rates, exemptions and regional rules may apply. Source
Italy22%Standard rate; reduced rates, exemptions and regional rules may apply. Source
Denmark25%Standard rate; reduced rates, exemptions and regional rules may apply. Source
Sweden25%Standard rate; reduced rates, exemptions and regional rules may apply. Source
Finland25.5%Standard rate; reduced rates, exemptions and regional rules may apply. Source

These ten examples show different systems; they are not a complete world list. https://europa.eu/youreurope/business/finance-and-tax/vat/vat-rules-rates/indexamp_en.htm figures come from the official table checked July 13, 2026. Other links go to national tax authorities, except the U.S. explanation from OECD. Temporary and product-specific rates are not listed.

Download shopping-tax examples (CSV)

What do people get for the money?

Public services

Taxes help pay for schools, roads, defense and other services. Governments choose how much to spend on each.

Household bills

Compare taxes with separate bills for health care, college, child care and retirement. A lower tax rate alone does not tell you which family has more left.

Coverage and quality

Ask who can use a service, what it covers, and how well it works. Paying more tax does not by itself prove that services are better.

Read alongside health costs and college costs around the world. This page does not calculate a combined tax-and-benefits total.

Sources and limits

Research checked October 17, 2026. Worker figures use 2025 rules and estimated average wages in the OECD’s 2026 release. They do not describe a full year of 2026 taxes. The comparison covers all 38 OECD member countries, not every country in the world.

Worker tables leave out sales/VAT, property and company taxes, investment-income taxes, and many private payments. Country models use specific local rules. Results change with income, household type and location. They are a guide to comparing systems, not a personal tax estimate.

Every shopping-tax row also links to its source. Rates can change after the dates shown.

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