Personal income tax rates vary widely across Europe. Policies and tax structures contribute to these differences.
Income level, marital status and the number of dependent children play an important role in determining how much of gross wage earnings goes to taxes.
So which European countries charge the highest and lowest personal income tax on gross wages?
Euronews Business takes a closer look at income tax rates based on the OECD’'s Taxation Fees 2026 report. These rates do not include social security premiums.
The only one without children
The first scenario is the average wage of a single person without children. %He won his 100 ’. Personal income tax (PIT) for this option in 2025, 22’si among 27 European countries that are EU members Poland’da %6.6’ to Denmark’ %It varies up to 35.3’e.
The EU-22 average %At 17.2, the OECD average %A little lower at 15.5.
History of Denmark %Iceland is the only country to exceed 30 ’ (.1) and Belgium (,6) %It is over 25’. the Estonian ’ (,6), Finland’da (,1), Ireland’da () and Norway’te (.4) and tax rates. %It's over 20’.
EuropeAmong ’'s leading economies is Italy (,1) and the United Kingdom, while taxing above the EU average, Germany (.2) is consistent with this. the Spanish (,1) and France (.7) is slightly lower.
Poland’ as well as Czechia’da (%9.7) single digits were reached. Switzerland and Slovakia %It's under 12’.
Single-income couple with two children
In most cases, a single-income couple with two children pays less tax than a single person without children. the EU (EU.2 vs. ) and OECD (.5 vs. 15.5 ) Averages reflect this.
In this scenario, income tax rates Slovakia’da -nmark with 6.5’da %It ranges from 31.8. A negative tax rate means that taxes are returned rather than deducted. Germany is only %It is approaching this threshold by applying a rate of 0.7’.
the Polish ’ (%1,1), Czechia’da (%3,3), Portugal’de (%4,5) and Slovenia’da (%4.7) a single-income couple with two children %He pays less than 5’.
In this scenario, this ratio is in Estonia’ (,6), Finland’da (), Iceland’da (,4) and Norway’te (.4 is still %It's over 20’.
Two-child, two-income couple
In the third scenario, both of the average wage %A two-child, two-income couple who earns 100’ pays slightly less tax than a single person who does not have children. EU-22 and OECD averages, respectively .5 and %It is 14.3’.
Rates in this scenario Slovakia’da nmark with 4.7’da %It varies from 35.3.
Tax Foundation economist Alex Mengden explained that under the generally fixed income tax system, households with two children, whether single-income or two-earnings, are subject to the same PIT’e. With increased rate tax systems, two-income couples pay higher taxes.
Why is tax mix important for country differences?
Edoardo Magalini, OECD analyst and statistician and co-author of the report, points to various reasons for differences at the country level.
Euronews Business’a said: “First of all, countries have ‘ different approaches to ’ tax mixes, depending on their income needs, the structure of their economies, as well as the historical development of their financial institutions.”
“Some countries charge VAT or taxes (corporate income taxes, capital income taxes, etc.) on different types of income.
Income tax alone doesn't tell the whole story
Magalini noted that the total tax burden on labor income also depends on other payments outside of PIT’s, such as social security contributions (SSCs) paid by both employees and employers.
Denmark, for example, stands out as the country with the highest PIT rate. But the workers there pay almost no social security premiums. France, on the other hand, has a significant share of the SBH’s, although it appears to be below the EU-22 average.
Mengden also pointed out that different dependence on social contributions is the main cause of differences at the country level. Social security contributions vary significantly between countries, and this affects the rate of wages taken to the general home.
John Hurley, senior research director at Eurofound’, emphasized that countries with higher labor tax share in general also tend to have more progressive tax systems, meaning they tax higher income earners more heavily and lower wage earners less or no tax at all.
Where do children matter the most?
When comparing a single-income couple with two children to a single person without children, the difference in some countries is remarkable. SlovakiaThe difference in ’ reaches 17.4 percent, followed by Germany (16.5 points), Luxembourg (12 points) and Belgium (11.8 points), all above 10 points.
As the chart shows, the tax rate is the same in Estonia, Norway, Lithuania, the UK, the Netherlands, Sweden and Turkey’.
Mengden noted that the difference in the income tax rate for a childless single worker and a married couple with two children reflects the generosity of child benefits, which are mostly transferred through the income tax law.
Although some countries, such as “ Estonia, Lithuania, Norway, Sweden and Turkey, show no difference here, this does not mean that they do not offer generous child benefits; Instead, it means they may be working through other channels, such as public-provided services, direct transfers, or free co-insurance for children, ” added.
