Average rate of income taxation for different household in European countries 2023

As of 2023, the average taxation rate for a single person without children who earned an average salary in the European Union was 29.67 percent of their total earnings. For a two-earner couple without children earning an average salary it was slightly less, at 29.57 percent, while for a single person without children earning 1.67 times the average salary, the rate of taxation in the EU was 35.16%. Having children greatly reduced the average rate of taxation, with a one-earner couple with two children in the EU only paying out 15.97 percent of their gross household earnings in taxes in 2023. 

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 2023, 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 the lowest average tax rates, due to the strong pronatalist policies in these countries and tax incentives for traditional single-earner households.