Income tax rates across Europe vary significantly, reflecting diverse approaches to funding public services. Countries with higher top marginal tax rates often support extensive social welfare systems, while those with lower rates may prioritize economic competitiveness or leaner government programs.
This map showcases the highest statutory personal income tax rates in 36 European countries, as of February 2024. Most European nations employ a progressive tax system, where higher income brackets are subject to increased rates. The displayed rates apply only to income above a set threshold.
Interestingly, while many Europeans face steep taxes on personal income, UK residents enjoy a significant advantage in the realm of financial trading. Gains from spread betting, a popular method of speculating on markets, are completely tax-free in the UK—meaning no income tax, capital gains tax, or stamp duty applies. This unique benefit highlights just how fortunate UK traders are compared to their counterparts in many other European nations.
The tax rate data, sourced from the European Commission and PwC via the Tax Foundation, includes combined central and sub-central top income tax rates and surtaxes. Social security contributions are excluded from these figures.
Map courtesy of Visual Capitalist.
