As of 2022, the average taxation rate for a single person without children who earned an average salary in the European Union was 29.62 percent of their total earnings. For a two-earner couple without children earning an average salary it was slightly more, at 29.64 percent, while for a single person without children earning 1.67 times the average salary, the rate of taxation in the EU was 35.12%. Having children greatly reduced the average rate of taxation, with a one-earner couple with two children in the EU only paying out 16.97 percent of their gross household earnings in taxes in 2022.
Tax rates in Europe are generally quite high, due to the progressive income tax systems set in place during the 20th century in many countries, which require high taxation in order to fund generous social welfare systems. Belgium was the country with the highest average rates of taxation in 2022, with a high earning single person without children subject to pay almost half of their gross household earnings out in taxes. Other countries in North-western Europe such as Germany, Denmark, and Luxembourg also top the list for highest income taxation rates in Europe, while Cyprus was the country in Europe with the lowest average taxation rates in Europe during the same period. In both Czechia and Poland, single-earner families with two children actually saw negative average tax rates, due to the strong pronatalist policies in these countries and tax incentives for traditional single-earner households.
Average rate of taxation on income earned by different household types and types of earners in Europe in 2022, by country
(as a percentage of gross annual earnings)
Characteristic
One-earner couple with two children earning 100% of the average earning
Two-earner couple with two children, both earning 100% of the average earning
Single person without children earning 100% of the average earning
Two-earner couple without children, both earning 100% of the average earning
Single person without children earning 167% of the average earning
The average tax rate is defined as the income tax on gross wage earnings plus the employee's social security contributions less universal cash benefits, expressed as a percentage of gross wage earnings. The calculations are illustrative, as actual tax rates may depend on more factors than those included.
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Eurostat. (April 14, 2023). Average rate of taxation on income earned by different household types and types of earners in Europe in 2022, by country (as a percentage of gross annual earnings) [Graph]. In Statista. Retrieved November 02, 2024, from https://www.statista.com/statistics/1449813/average-rate-of-taxation-european-countries-households/
Eurostat. "Average rate of taxation on income earned by different household types and types of earners in Europe in 2022, by country (as a percentage of gross annual earnings) ." Chart. April 14, 2023. Statista. Accessed November 02, 2024. https://www.statista.com/statistics/1449813/average-rate-of-taxation-european-countries-households/
Eurostat. (2023). Average rate of taxation on income earned by different household types and types of earners in Europe in 2022, by country (as a percentage of gross annual earnings) . Statista. Statista Inc.. Accessed: November 02, 2024. https://www.statista.com/statistics/1449813/average-rate-of-taxation-european-countries-households/
Eurostat. "Average Rate of Taxation on Income Earned by Different Household Types and Types of Earners in Europe in 2022, by Country (as a Percentage of Gross Annual Earnings) ." Statista, Statista Inc., 14 Apr 2023, https://www.statista.com/statistics/1449813/average-rate-of-taxation-european-countries-households/
Eurostat, Average rate of taxation on income earned by different household types and types of earners in Europe in 2022, by country (as a percentage of gross annual earnings) Statista, https://www.statista.com/statistics/1449813/average-rate-of-taxation-european-countries-households/ (last visited November 02, 2024)
Average rate of taxation on income earned by different household types and types of earners in Europe in 2022, by country (as a percentage of gross annual earnings) [Graph], Eurostat, April 14, 2023. [Online]. Available: https://www.statista.com/statistics/1449813/average-rate-of-taxation-european-countries-households/