Income taxes in Europe vary from country to country, reflecting different approaches to financing social programs and economic competitiveness. In 2025, the maximum tax rates in 36 European countries show considerable variation.
Where is Europe’s highest personal income tax? Leaders in terms of maximum rates:
- Denmark ranks first with a maximum rate of 55.9%. From 2026, for the richest citizens with an income over 2,588,300 DKK (336,500€), the rate can reach 60.5%. Denmark ranks 6th in the world in terms of wealth per capita.
- France follows right behind Denmark with 55.4%.
- Austria with 55% plans to decrease to 50%.
- Spain has a rate of 54%.
- Belgium with 53.5%.
- Portugal with 53%.
- Sweden with 52.3%.
- Finland with 51.4%.
- Slovenia with 50%.
- Netherlands with 49.5%.
- Ireland with 48%.
- Germany with 47.5%.
- Italy with 47.3%.
- Iceland with 46.3%.
- Luxembourg with 45.8%.
- Great Britain with 45%.
- Greece with 44%.
- Turkey with 40.8%.
- Norway with 39.6%.
- Switzerland with 39.5%.
- Poland with 36%.
- Croatia with 35.4%.
- Malta with 35%.
- Cyprus with 35%.
- Lithuania with 32%.
- Latvia with 31%.
- Slovakia with 25%.
- Czech Republic with 23%.
- Russia with 22%.
- Georgia with 20%.
- Estonia with 20%.
- Ukraine with 19.5%.
- Hungary with 15%.
- Moldova with 12%.
- Romania with 10%.
- Bulgaria with 10% – if you have a very high salary, it is more profitable to receive it here.
Comparison with previous years
In 2023, Germany increased the amount of tax-free wages to €11604 per year. In 2024, a maximum rate of 42% applies to income over €62,827 per year. In 2023, Germany discussed a proposal to raise income tax to support Ukraine, which could affect the tax burden of citizens.
Data sources and methodology: information on maximum tax rates in Europe is provided by the European Commission and PwC through the Tax Foundation. The calculations take into account both state and regional taxes, but social contributions are not included.
Journalist, editor with 9 years of experience in investment immigration. I specialize in analysis of residency and tax programs, as well as individual selection of jurisdictions for relocation.
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