Where Workers Pay the Highest and Lowest Taxes in Europe

What portion of gross salary do citizens in Europe actually allocate for income tax? The answer depends on several factors, including income level, household status (one or two income earners), and the number of dependent children. The latest edition of the OECD report Taxing Wages 2025 provides a detailed overview of the tax burden through various indicators. Euronews’ analysis focuses exclusively on income tax as a share of gross salary, excluding social security contributions.

Singles without children: from 6.2 percent to 35.7 percent

For singles without children earning the average salary in their country, the income tax in 2024 ranged from 6.2 percent in Poland to as high as 35.7 percent in Denmark. Compared to the five largest European economies, Italy had the highest tax rate at 20.9 percent, while Germany and France were at 16.7 percent, Spain at 16 percent, and the United Kingdom at 15.5 percent.

In the Nordic countries, taxes remain high, with Sweden being the exception at 16.1 percent, while others, including Denmark, Norway, and Iceland, are significantly above 20 percent.

On the other hand, alongside Poland, five other countries had tax rates below 12 percent: Slovenia, Greece, Switzerland, Slovakia, and the Czech Republic.

According to earlier data from the Ministry of Finance of the Republic of Croatia and Eurostat, in Croatia, the income tax for a single person without children earning the average gross salary was around 10–12 percent, placing Croatia among countries with a lower tax burden.

Couple with one employed and two children: even negative taxes

For households with one employed parent and two children, the income tax ranged from -12.8 percent in Slovakia to 32 percent in Denmark. Germany also recorded a negative rate (-0.1 percent), meaning the state returns more money than it collects, mainly through tax reliefs rather than standard family allowances.

The highest taxes in this category were recorded in Nordic countries. Sweden exceeded both the OECD and EU-22 averages. In large economies like France and Spain, the tax rate for this family structure is significantly lower than for singles – dropping to around 10 percent. Below 5 percent tax in this category are recorded by Switzerland, Slovenia, Portugal, the Czech Republic, and Poland.

In Croatia, tax policy also significantly favors families with children. According to simulations from the Tax Administration, the income tax for such households often amounts to less than 5 percent, and with the application of reliefs, it can drop to zero.

Two employed parents with two children: differences remain significant

In households with two employed parents and two children, the income tax ranges from 1.6 percent in Slovakia to 35.7 percent in Denmark. In this category, Denmark continues to lead as the country with the highest tax burden. In Croatia, according to available data, the effective tax rate for such a family usually ranges between 7 and 10 percent, depending on salary levels and the use of reliefs. Interestingly, in eight countries, Estonia, Finland, Greece, Lithuania, Norway, Sweden, Turkey, and the UK, tax rates are the same for all three analyzed groups, indicating systems that do not favor (or penalize) family status in tax calculations. However, this does not mean that net salaries are equal; contributions and family allowances still create significant differences in actual disposable income.

Key tax trends in Europe

Denmark has the highest tax burden for all family categories. Belgium and Iceland also stand out with high rates, especially for singles. Slovakia and Germany record negative taxes for households with one employed parent, indicating strong fiscal support for families. Poland and the Czech Republic are among the countries with the lowest taxes for all analyzed groups.

Nordic countries continue to lead in tax levels, regardless of family status. They are followed by Western Europe with moderately high rates, while Eastern countries maintain low taxes.

Tax increases with income level

Tax progressivity is confirmed in almost all countries except Hungary, where the tax rate does not change with rising income. For singles without children earning 67 percent of the average salary, the average tax rate in the EU is 12.1 percent. For those earning 100 percent of the average salary, the tax is 17.2 percent, and for those earning 167 percent of the average salary, the tax is 23.1 percent. Sweden records the largest jump, from 16.1 percent to 28.7 percent, representing an increase of as much as 78 percent.

Significant increases are also recorded in the Netherlands, the UK, Poland, Germany, Greece, Portugal, and Austria (all above 50 percent). The smallest increases were recorded in Estonia, Lithuania, and Latvia, below 10 percent, while there was no change in Hungary. In Croatia, there is also tax progressivity, although milder than in most Western European countries. For citizens with higher incomes, an additional burden comes from the surtax (which is gradually being abolished) and fewer opportunities to utilize reliefs.