The 10 Countries With The Highest Tax Rates


If your priority is to pay low taxes then you may want to avoid these ten countries.

Here’s the highest tax countries top 10

10. Ireland

Highest income tax rate: 48%

The Republic of Ireland has a much higher personal tax rate than the average of 40% in Northern Europe. The Irish also have to pay an additional social security tax of 4%. The Irish government has also raised the capital gains tax from 25% to 30% for inheritances and gifts.

9. Finland

Highest income tax rate: 49.2%

The income tax rate was significantly reduced from 53.5% in 2004. However this was compensated with a rise in the property tax, gift tax, and capital gains tax. If you belong to Finnish church you also have to pay a church tax of 1% to 2%.

8. United Kingdom

Highest income tax rate: 50%

The U.K. increased its highest tax rate by 10% in 2010 to 50%. However, the U.K. will move down the list in April 2013, when the rate in cut to 45%. Social security taxes can be as high as 14%, while capital gains can reach 28%.

7. Japan

Highest income tax rate: 50%

Japan is the only Asian country to make the list of the top 10. This tax rate of 50% is double the average rate in Asia of 23%.

Average income is US$53,200

6. Austria

Highest income tax rate: 50%

Additionally to the high income tax, Austria’s social security rate ranges from 17% to 18%.

5. Belgium

Highest income tax rate: 50%

Additionally, social security rate is 13.07% of total income, municipal taxes of up to 11%, and capital gains tax of up to 33%. Belgium has the highest tax and social security burden in the world, with single taxpayers keeping less than 45% of their actual income.

Average income in the country is $45,037.

4. Netherlands

Highest income tax rate: 52%

The Netherland’s government also charges capital gains tax of 25%, land transfer tax of 6% and inheritance tax of up to 40%. However, the modern day Dutch must feel blessed, previous income tax rates have been as high as 72%.

Average income is US$57,000.

3. Denmark

Highest income tax rate: 55.4%

The tax rate came down from 62.3% in 2008 to the present rate. The dividend income and capital gains are also taxed between 28% and 42%. Even the church doesn’t escape. They must pay tax ranging from 0.4% to 1.5%.

2. Sweden

Highest income tax rate: 56.6%

Employees also contribute 7% of their income in social security. Sweden also has a 30% tax on investment income. All of this tax funds their generous social system which includes education, subsidized healthcare, public transport, and fantastic pension benefits to its citizens.

Average income is US$48,800.

1. Aruba

Highest income tax rate: 58.95%

In the Dutch territory, if you are married you pay a slightly lower rate of 55.85%. Capitals gains tax is 25%. This all helps to fund the highest standard of living in the Caribbean. The rate is double the average rate in the Caribbean. Many neighboring states such as the Bahamas and the Cayman Islands actually have zero income tax.


About Author

Denis Foynes

Denis Foynes was born in New York City to Irish parents in 1991. When he was 8, his family returned to Celtic Tiger Ireland. Denis has an International Politics degree from Aberystwyth University in Wales. After completing university, he decided to leave crisis Ireland and relocate to Panama.