Personal income tax (PIT) and social security contributions (SSC) - average and marginal rates on gross wage and earnings — Tax wedge by country
The average and marginal personal income tax (PIT) and social security contribution (SSC) rates for a single person without dependent, at various multiples (67%, 100%, 133%, 167%) of the average wage. Related topics: Taxing Wages, Labour taxation, Tax wedge decomposition, Average wage, Income, Household
What the numbers show
Personal income tax (PIT) and social security contributions (SSC) - average and marginal rates on gross wage and earnings — Tax wedge is currently reported for 35 countries. The highest value is 52.48 Percentage of labour costs in Belgium; the lowest is 7.46 Percentage of labour costs in Chile.
The median across all reporting countries is 39.34 Percentage of labour costs, and the mean is 36.16 Percentage of labour costs.
The gap between the highest and lowest reporting country is a factor of about 7.
Over the past decade 14 countries rose and 21 fell. The largest increase was in Israel (up 19.8%), and the largest decrease in Hungary (down 16.1%).
Personal income tax (PIT) and social security contributions (SSC): full country ranking
| # | Country | Latest | Year | 10-year change | Trend |
|---|---|---|---|---|---|
| 1 | Belgium | 52.48 Percentage of labour costs | 2025 | down 5.1% | falling |
| 1 | Slovenia | 45.3 Percentage of labour costs | 2025 | up 6.4% | falling |
| 2 | Germany | 49.26 Percentage of labour costs | 2025 | down 0.4% | falling |
| 2 | Estonia | 42.64 Percentage of labour costs | 2025 | up 9.2% | falling |
| 3 | France | 47.18 Percentage of labour costs | 2025 | down 2.7% | falling |
| 3 | Türkiye | 40.33 Percentage of labour costs | 2025 | up 5.6% | falling |
| 4 | Austria | 47.09 Percentage of labour costs | 2025 | down 5.1% | flat |
| 4 | Latvia | 40.14 Percentage of labour costs | 2025 | down 5.6% | flat |
| 5 | Italy | 45.76 Percentage of labour costs | 2025 | down 4.3% | flat |
| 5 | Lithuania | 39.79 Percentage of labour costs | 2025 | down 3.4% | falling |
| 6 | Finland | 42.48 Percentage of labour costs | 2025 | down 2.4% | falling |
| 6 | Netherlands | 35.94 Percentage of labour costs | 2025 | down 2.6% | falling |
| 7 | Spain | 41.44 Percentage of labour costs | 2025 | up 5.2% | rising |
| 7 | Poland | 35.03 Percentage of labour costs | 2025 | down 2.0% | falling |
| 8 | Czechia | 41.2 Percentage of labour costs | 2025 | down 3.8% | flat |
| 9 | Hungary | 41.15 Percentage of labour costs | 2025 | down 16.1% | falling |
| 10 | Sweden | 41.14 Percentage of labour costs | 2025 | down 3.5% | falling |
| 11 | Luxembourg | 40.16 Percentage of labour costs | 2025 | up 1.7% | rising |
| 12 | Portugal | 39.34 Percentage of labour costs | 2025 | down 3.9% | rising |
| 13 | Greece | 39.34 Percentage of labour costs | 2025 | up 1.5% | flat |
| 14 | Norway | 36.39 Percentage of labour costs | 2025 | down 1.0% | falling |
| 15 | Denmark | 35.76 Percentage of labour costs | 2025 | down 1.4% | falling |
| 16 | Japan | 33.12 Percentage of labour costs | 2025 | up 2.6% | rising |
| 17 | Ireland | 32.63 Percentage of labour costs | 2025 | down 1.8% | rising |
| 18 | United Kingdom of Great Britain and Northern Ireland | 32.38 Percentage of labour costs | 2025 | up 5.1% | falling |
| 19 | Canada | 32.12 Percentage of labour costs | 2025 | down 1.1% | flat |
| 20 | Iceland | 31.51 Percentage of labour costs | 2025 | down 8.1% | rising |
| 21 | United States of America | 29.98 Percentage of labour costs | 2025 | down 4.6% | flat |
| 22 | Australia | 27.9 Percentage of labour costs | 2025 | down 1.6% | flat |
| 23 | Costa Rica | 27.66 Percentage of labour costs | 2025 | up 4.4% | rising |
| 24 | Israel | 26.07 Percentage of labour costs | 2025 | up 19.8% | falling |
| 25 | Switzerland | 22.98 Percentage of labour costs | 2025 | up 5.2% | flat |
| 26 | Mexico | 21.65 Percentage of labour costs | 2025 | up 9.3% | rising |
| 27 | New Zealand | 20.81 Percentage of labour costs | 2025 | up 18.1% | flat |
| 28 | Chile | 7.46 Percentage of labour costs | 2025 | up 6.6% | flat |
Regions and income groups
Aggregates are excluded from the country ranking above so that a region can never outrank a country.
- Slovak Republic 42.72 Percentage of labour costs
- Korea 24.85 Percentage of labour costs
About this data
The average and marginal personal income tax (PIT) and social security contribution (SSC) rates for a single person without dependent, at various multiples (67%, 100%, 133%, 167%) of the average wage. Related topics: Taxing Wages, Labour taxation, Tax wedge decomposition, Average wage, Income, Household