Economic Growth

This is where people in the OECD pay the most tax

A picture illustration shows a 100 Dollar banknote laying on various denomination euro banknotes, taken in Warsaw, January 13, 2011.  The U.S. dollar extended losses against the yen and euro after data showed rising gasoline prices had put U.S. consumers in a gloomy mood in early January. The euro, which hit a one-month high above $1.34 overnight before fading, moved back to $1.3396 after the data.  Picture taken January 13.  REUTERS/Kacper Pempel    (POLAND - Tags: BUSINESS) - BM2E71E1CM601

Who's taking the biggest cut? Image: REUTERS/Kacper Pempel

Niall McCarthy
Data Journalist, Statista
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Last week, the OECD released the latest edition of its "Taxing Wages" report which focuses on the net personal average tax rate in different nations. It takes into account income tax and social security contributions paid by employees without family benefits as a share of gross wages. Last year, the average share of gross wages paid in tax across the OECD was 25.5 percent. There is a considerable difference in tax rates between countries and they are heavily dependent on earnings and family status.

A single worker in Belgium and Germany will face a high combination of income tax and social security payments that will account for just under 40 percent of his or her gross earnings. Despite that, workers in both countries do get something back such as health insurance, pensions, old-age care and unemployment benefits. In Italy, the break down is 21.9 percent for income tax and 9.5 percent for social security, adding up to 31.4 percent in total. The U.S. trails with 16.1 percent for income tax and 7.7 percent for social security making for 23.8 percent of gross earnings in total.

Image: OECD
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