- Date : 23/11/2021
- Read: 3 mins
- Read in हिंदी: सबसे अधिक कर दरों वाले टॉप 10 देश
Which nations have the highest income tax rates? Here is a list of the top 10 countries.
Taxation differs significantly across countries. Have you ever wondered which country has the highest tax rates? Before we jump into our list of income tax rates in other countries, let’s look at India first. Annual incomes under Rs 2,50,000 are not taxed as per the new tax regime, but any amount exceeding this is taxable.
In India. the income tax rate starts at 5% for the lowest slab and progressively increases with higher slabs, up to a maximum of 30%. But what is the highest income tax slab in India? The highest slab is over Rs 15,00,000, and the income tax to be paid as per the new regime is 30% of total income exceeding Rs 15,00,000.
Next, let us see which are the top 10 highest taxed countries. Dive in to learn more.
Countries with the highest income tax rates
- Finland: With long days and longer nights, Finland is a wonderful place for those who love the cold weather. But before you make plans to move, don’t forget that the income tax rates here are high, with the highest tax bracket being assessed at 56.95%.
- Denmark: As charming as life in Denmark sounds, it doesn’t come without a high cost. The tax rate here goes up to a whopping 56%.
- Austria: Austria charges different tax rates, increasing gradually from lower-income slabs to higher ones. The highest tax slabs are liable to pay income tax at the rate of 55%.
- Sweden: The high life expectancy rate and standard of living rankings of Sweden show that it is expensive. At present, the income tax rate here goes up to 52.9%.
- Aruba: The island country of Aruba might seem a great destination. Still, you’d want to think twice before settling there, given the income tax rate stands at 52%.
Related: 13 Income Components Exempted Under The New Tax Regime
- Portugal: You might have heard about Portugal’s role in world history and how it is famous as a tourist destination. However, the country is a well-developed high-income nation due to its highest income tax rate of 48%.
- South Korea: Is your love for K-pop and K-dramas making you gravitate towards South Korea? Well, be careful, considering the personal income tax rate there goes up to 45%.
- Germany: The tax rates in Germany start at 14% and rise geometrically. The highest income slab charges tax at a rate of 45%.
- Japan: Japan is famous across the world for its technological advancements. But a less popular fact about the country is its income tax rate, which can be as high as 45%.
- Switzerland: Switzerland is no doubt a fancy country - the land of gourmet cheese and chocolates. Of course, the high standards come with a high income tax rate of 40%.
Income tax is one of the most important streams of revenue for every government. As we have seen from this list, the tax varies significantly across different countries. In general, European countries seem to have higher tax rates than the rest of the world. Luckily, India does not fall in the top 10 countries with the highest tax rates.