Tax Basics

highest tax rates in world

Lowest & Highest Tax Rates in The World

April 20, 2017 : Allie Freeland – Contributing Editor

Income tax is a major source of revenue for governments around the world. Did you know some countries do not require you to pay income tax? That’s right, there are 10. These countries are well-known tax havens to the rich and are able to sustain their government through the use of natural resources (like Saudi Arabia). On the flip side, some countries tax their residents up to 60% of their total income. What a difference!

So, what countries have the highest tax rates in the world? What countries do not have any personal income tax? Find out in this infographic:

tax rates around the world infographic

HIGEST TAX RATE*

Country                                      Tax Rate

Chad 60.0 %
Ivory Coast 60.0 %
Aruba 59.0 %
Sweden 57.1 %
Portugal 56.5 %
Japan 55.9 %
Denmark 55.8 %
Austria 55.0 %
Belgium 53.7 %
Netherlands 52.0 %

* Highest tax rate: Each percentage reflects the highest amount a taxpayer pays in the country.

LOWEST TAX RATE

Country                                      Tax Rate

Bahamas 0.00 %
Bahrain 0.00 %
Bermuda 0.00 %
Brunei 0.00 %
Cayman Islands 0.00 %
Kuwait 0.00 %
Oman 0.00 %
Qatar 0.00 %
Saudi Arabia 0.00 %
United Arab Emirates 0.00 %

UNITED STATES TAX RATE

Top Tax Rate: 39.60 %

Average Income Taxes Paid: 29.8 %

Lowest Tax Rate: 10 %

If you add up the four income-based categories of taxation (federal, state, local, Social Security, and Medicare), the average American’s effective tax rate is 29.8%

Income tax brackets in the U.S. range from 10% to 39.6%, but due to the Earned Income Tax Credit, some low-income Americans actually pay less than zero in federal income taxes.

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Allie Freeland – Contributing Editor

Allie Freeland – Contributing Editor

H&R Block

Allie is the Contributing Editor of the H&R Block blog, Block Talk. She has been a practicing grammar geek since 2007.

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