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If you were planning to move to a new country, it is a good idea to see the income taxes of this place before going. Being single or married also matters when thinking about a potential new home. The countries with the highest taxes on high incomes, which are Slovenia, Belgium, Sweden, Finland, and Portugal, are different from the ones with the highest taxes on average income earners.
Again the situations for with or without children and spouse changing. Denmark is the country with the highest taxes for single and married individuals, but the other 4 European countries in this list are very different.
In this article you will be able to find the taxes whether you are single or married with data taken from OECD.
Where are the Highest Income Taxes for Single People
Germany operates with a progressive tax – the higher your income is, the bigger the taxes. The progressive income and capital tax cap out at 45%. Your first €801 which are in savings and investment income are not affected by taxes, because of the saver’s allowance. The withholding tax on interest is 25% and dividends and the one on royalties – 15%.
If you decide to become a member of a particular church, then you will have to give 9 % tax to this organization (which is tax-deductible). This is a common practice in many countries in Europe.
If your income is below €9,408, then it is a personal allowance and it is not affected by taxes. You will also experience taxes for pension, health insurance, unemployment and many others.
Belgium also has progressive tax which reaches 50%. All of your income is taxable. Capital gains tax rates depend on the type of capital. The tax for social security is 13.07% out of their income. There are some deductions allowed for business expenses, social contributions, and 80% of alimony payments.
Lithuania’s taxes go as high as 32%. Income which is not connected to employment like royalties, interest, and gains from the sale of property is affected by around 20% taxation. With dividends the tax rate is at 15%. A withholding tax on interest is missing if you have citizenship (otherwise it’s 15%).
Denmark also operates with progressive income tax, reaching 55.9%. The labor market contribution tax is 8%, the tax for healthcare – 8% , the municipal one – up to 27.8% and the one for social security – $167.06 annually. The capital gains taxes are between 27% and 42%. A withholding tax is places for dividends (27%) and on royalties (22%). Lastly, there is also a voluntary church tax of up to 1.3%. There are some tax deductions in the country for some citizens, helping with pensions, unemployment insurance, interest on the debt and others.
Slovenia’s taxes start from 16% and go as high as 50%. If you are a resident, you will be taxed on your worldwide income, and if you are not – only on your Slovenia-sourced income. Particular activities connected to the business sphere have a tax rate of only 20%. As for the withholding tax, it is 27.5% for dividends, interest, and rental income. The tax for capital gains is 27.5%, and it could decrease to 20% in case the particular asset is kept for more than 5 years. Capital gains which are received from derivatives, are taxed at 40% if they are disposed of within 1 year. The tax for royalties and fees for technical services is 25%. In case they become part of the employment income, they will be taxed with a progressive rate.
What are the taxes in the USA
The USA has a tax of 24% for single individuals. Some of the countries with much lower rates are Mexico, Korea, and Chile. You shouldn’t forget that although taxes might seem like something unnecessary or unpleasant, they provide a higher standard of living, order, and social benefits.
Which Are the Countries With the Highest Income Tax Rates?
Income tax is a tax levied on the basis of earning level, which is collected both from individuals and companies depending on their income level. Depending on the state you live in or work from, the income tax rates vary from 0% to over 55%. So, which are the countries with the highest income tax rates?
Residents of this small European country have to pay a maximum rate of 55% individual income tax and an additional 10.05% social security tax. This means that the combined tax rate for earners in Belgium is 65.05%, making it the highest in the world.
Income tax rates in Germany vary depending on the individual’s level of earning and are collected in the form of a pay-as-you-earn basis known as “Lohnsteuer”, which starts at 14% and increases to a maximum of 42%. The combined maximum rate of income tax and social security stands at 48.3%.
Residents of Austria need to pay a maximum of 50% income tax as well as an additional 12.4% social security tax, making its combined tax rate 62.4%.
Income tax rates in Denmark depend on the individual’s level of income and range from 0% to a maximum of 52%, in addition to an 8% social security tax, making its combined rate the second-highest in the world at a maximum of 60%.
Residents of Lithuania have to pay an income tax rate of up to 40% combined with a social security tax rate of 9%, resulting in a combined maximum rate of 49%.
Frequently Asked Questions
1.What is the highest income tax rate?
The highest income tax rate is 65.05%, which is levied in Belgium.
2.Which countries have the highest income tax rates?
Belgium, Germany, Austria, Denmark, and Lithuania are the countries with the highest income tax rates.
3.What is the average income tax rate in Europe?
The average income tax rate in Europe is around 30%.
4.Are there countries with no income tax?
Yes, there are some countries that do not levy income tax, such as the United Arab Emirates, Bahrain, and the Isle of Man.
Income tax is collected from both individuals and companies depending on their income level. The highest income tax rate in the world is 65.05%, which is charged in Belgium. Other countries with the highest income tax rates are Germany, Austria, Denmark, and Lithuania. The average income tax rate in Europe is around 30%, while there are some countries that do not levy income tax, such as the United Arab Emirates, Bahrain, and the Isle of Man.