The top countries with the highest tax rates are going to take a shark-sized bite out of your paycheck. Of course, all the money goes to the greater good (in theory). But let’s face it: nobody really likes taxes, but most of us have to start paying them as soon as we get a job and make money. While most of the world’s working population is required to pay taxes some way or another, some nationalities out there have it a lot worse than others.
We would like to present you with a list we have compiled of the top countries with the highest tax rates. Let’s take a look.
No. 7: Japan: 50% for an income of at least $228,000
The average income tax in Asia is around 23%. Japan has more than double that. Nonetheless, only people making a lot of money are required to pay such high taxes, making Japan one of the top countries with the highest tax rates. The average salary in the country is around $53,000 and the 50% tax requirement applies only to those making over $228,000.
No. 6: Austria: 50% for an income of at least $74,442
Austria has some of the highest salaries in Europe, but it also has a high income tax regimen. In addition, locals who decide to put their money in Swiss banks are also charged, due to a tax agreement between Switzerland and Austria.
No. 5: Belgium: 50% for an income of at least $45,000
Most of Belgium’s population is required to pay the 50% tax, as the average salary in the nation is around $45,000. Moreover, Belgium charges numerous other taxes on its citizens, making the country with the highest social security burden, which lands it on our list of top countries with the highest tax rates.
No. 4: The Netherlands: 52% for an income of at least $70,080
As one of the most developed countries in Western Europe, it is somewhat explainable why the country has such a high income tax regimen. In addition, the Netherlands also charges a 40% inheritance tax and a capital gains tax of no less than 25%. The good news is that the average income in the country is $57,000, so most of the population does not have to pay such high taxes and likely don’t perceive themselves to be living in one of the top countries with the highest tax rates.
No. 3: Denmark: 55.38% for an income of at least $70,633
While still high, Denmark’s income tax rate was even higher in 2008 (62.3%). Unlike other countries, the Dutch administration also collects taxes from its churches, though the rate is substantially lower than the income tax (between 0.4 and 1.5%).
No. 2: Sweden: 56.6% for an income of at least $85,841
Sweden might be one of the strongest economies in Europe, but it also charges the highest income tax on the continent. Nonetheless, there are several advantages the Swedish population enjoys: free education, subsidized healthcare, a basic pension, and subsidized transportation.
No. 1: Aruba: 58.95% for an income of at least $171,149
Aruba is one of the strongest economies in the Caribbean Sea, but it also has the highest income tax in the world, but it used to be even higher a few years back. Unlike other countries in the region, who practice very low taxes or even zero income taxes, Aruba charges a mind-blowing 58.95% income tax on anyone making more than $171,000. Married couples do get a little discount on their taxes, of approximately 3%.
If you liked our breakdown of the top countries with the highest tax rates, check out our list of the “20 Countries with the Lowest Cost of Living.”
