Income Tax Rate By Country December 2022

The WiseVoter global rankings of income tax rates highlight the disparities in taxation systems worldwide, ranging from high-tax nations like Chad to tax-free Gulf countries. This analysis explores the economic and policy implications of varying tax rates.

Which country has the highest income tax rate?

Chad ranks first with an income tax rate of 60%. This high rate reflects the country’s reliance on direct taxation to fund public expenditures amid limited economic diversification.

Top countries with high income tax rates

Other nations with significant income tax rates include Sweden (57%), Denmark (56%), and Austria (55%). These countries are known for their comprehensive social welfare systems funded by progressive tax policies.

Moderate income tax rates

Countries such as Canada (33%) and New Zealand (33%) have moderate tax rates, balancing revenue generation with economic competitiveness. These rates often support robust healthcare and education systems.

Which countries have the lowest income tax rates?

Gulf nations like Qatar, United Arab Emirates, and Kuwait have a 0% income tax rate, leveraging significant revenue from natural resources to maintain tax-free systems for individuals.

Global insights into income tax rates

The variation in income tax rates reflects differences in economic structures, governance, and public service funding. High-tax countries often prioritize welfare, while low-tax nations may depend on alternative revenue sources like natural resources or indirect taxes.

What factors influence income tax rates?

Key factors include economic policies, governance models, public spending needs, and natural resource availability. Countries with high social spending typically implement progressive tax systems.

Why do Gulf nations have 0% income tax?

Gulf Cooperation Council (GCC) nations rely on oil and gas revenues to fund public services, eliminating the need for direct taxation on individuals.

How do high-tax countries benefit from their tax policies?

High-tax countries invest heavily in social welfare, infrastructure, healthcare, and education, creating equitable systems that enhance quality of life and social stability.

How do income tax rates affect economic competitiveness?

Lower tax rates can attract foreign investment and boost economic activity, while higher rates fund public services that support long-term development and social equity.

This comparative analysis of global income tax rates illustrates the diverse approaches countries take to fund public services and manage economic growth.

Income Tax Rate By Country December 2022 (%, December 2022)

Source

Source

Show publisher information Show sources information

Latest Data

December 2022

More information

Segment

Country

Publisher

WiseVoter

Previous Records

December 2022

Rank	Country	%
1	Chad	60
2	Sweden	57
3	Denmark	56
4	Austria	55
5	Netherlands	52
6	Zimbabwe	52
7	Belgium	50
8	Cuba	50
9	Slovenia	50
10	Israel	50
11	South Korea	50
12	Central African Republic	50
13	Norway	48
14	Germany	48
15	Portugal	48
16	Spain	47
17	France	45
18	United Kingdom	45
19	South Africa	45
20	Australia	45
21	Togo	45
22	Benin	45
23	China	45
24	Greece	44
25	Italy	43
26	Luxembourg	42
27	Papua New Guinea	42
28	Japan	41
29	Ireland	41
30	Switzerland	40
31	Turkey	40
32	Solomon Islands	40
33	Chile	40
34	Senegal	40
35	Mauritania	40
36	Guinea	40
37	Mali	40
38	Uganda	40
39	DR Congo	40
40	Colombia	39
41	Morocco	38
42	Zambia	38
43	Suriname	38
44	United States	37
45	Namibia	37
46	Uruguay	36
47	Ivory Coast	36
48	Algeria	35
49	Tunisia	35
50	Dominica	35
51	Argentina	35
52	Malta	35
53	Cyprus	35
54	Lesotho	35
55	Ecuador	35
56	Vietnam	35
57	Mexico	35
58	Thailand	35
59	Cameroon	35
60	Philippines	35
61	Burundi	35
62	Gabon	35
63	Pakistan	35
64	Niger	35
65	Gambia	35
66	Iran	35
67	Ethiopia	35
68	Equatorial Guinea	35
69	Venezuela	34
70	Canada	33
71	New Zealand	33
72	Guyana	33
73	Eswatini	33
74	Iceland	32
75	Poland	32
76	Mozambique	32
77	Finland	31
78	Latvia	31
79	India	31
80	Eritrea	30
81	Jamaica	30
82	Nicaragua	30
83	Saint Vincent and the Grenadines	30
84	Croatia	30
85	Djibouti	30
86	Saint Lucia	30
87	El Salvador	30
88	Malawi	30
89	Comoros	30
90	Kenya	30
91	Rwanda	30
92	Peru	30
93	Jordan	30
94	Ghana	30
95	Malaysia	30
96	Tanzania	30
97	Indonesia	30
98	Republic of the Congo	30
99	Haiti	30
100	Barbados	29
101	Brazil	28
102	Burkina Faso	28
103	Slovakia	25
104	Belize	25
105	Trinidad and Tobago	25
106	Costa Rica	25
107	Nepal	25
108	Honduras	25
109	Bhutan	25
110	Lebanon	25
111	Azerbaijan	25
112	Panama	25
113	Dominican Republic	25
114	Botswana	25
115	Liberia	25
116	Angola	25
117	Bangladesh	25
118	Laos	24
119	Nigeria	24
120	Czech Republic	23
121	Albania	23
122	Egypt	23
123	Armenia	22
124	Uzbekistan	22
125	Singapore	22
126	Estonia	20
127	Lithuania	20
128	Fiji	20
129	Georgia	20
130	Ukraine	20
131	Cambodia	20
132	Sao Tome and Principe	20
133	Madagascar	20
134	Guinea-Bissau	20
135	Afghanistan	20
136	Sri Lanka	18
137	Hungary	15
138	Seychelles	15
139	Mauritius	15
140	Sierra Leone	15
141	Sudan	15
142	Iraq	15
143	Bolivia	13
144	Belarus	13
145	Russia	13
146	Tajikistan	13
147	Moldova	12
148	Micronesia	10
149	Serbia	10
150	Kosovo	10
151	Bulgaria	10
152	Bosnia and Herzegovina	10
153	Mongolia	10
154	Kyrgyzstan	10
155	North Macedonia	10
156	Turkmenistan	10
157	Kazakhstan	10
158	Romania	10
159	Paraguay	10
160	Timor-Leste	10
161	Montenegro	9
162	Guatemala	7
163	Saudi Arabia	3
164	Brunei	0
165	Bahamas	0
166	Vanuatu	0
167	Maldives	0
168	Qatar	0
169	Bahrain	0
170	Oman	0
171	Kuwait	0
172	United Arab Emirates	0