Personal income tax (PIT) and social security contributions (SSC) - marginal rates on gross wage earnings — Tax wedge by country
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 AW/APW. 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) - marginal rates on gross wage earnings — Tax wedge is currently reported for 35 countries. The highest value is 72.77 Percentage of labour costs in Italy; the lowest is 10.59 Percentage of labour costs in Chile.
The median across all reporting countries is 47.8 Percentage of labour costs, and the mean is 45.37 Percentage of labour costs.
The gap between the highest and lowest reporting country is a factor of about 7.
Over the past decade 20 countries rose and 15 fell. The largest increase was in Chile (up 51.2%), and the largest decrease in Germany (down 18.8%).
Personal income tax (PIT) and social security contributions (SSC): full country ranking
| # | Country | Latest | Year | 10-year change | Trend |
|---|---|---|---|---|---|
| 1 | Italy | 72.77 Percentage of labour costs | 2025 | up 32.6% | rising |
| 1 | Netherlands | 53.03 Percentage of labour costs | 2025 | up 12.9% | flat |
| 2 | Belgium | 64.99 Percentage of labour costs | 2025 | down 2.0% | flat |
| 2 | Slovenia | 50.88 Percentage of labour costs | 2025 | down 0.3% | falling |
| 3 | Austria | 58.25 Percentage of labour costs | 2025 | down 3.7% | rising |
| 3 | Lithuania | 50.19 Percentage of labour costs | 2025 | up 11.4% | falling |
| 4 | France | 58.18 Percentage of labour costs | 2025 | down 1.9% | rising |
| 4 | Türkiye | 48.29 Percentage of labour costs | 2025 | up 12.9% | rising |
| 5 | Luxembourg | 57.37 Percentage of labour costs | 2025 | up 1.9% | rising |
| 5 | Latvia | 46.05 Percentage of labour costs | 2025 | up 4.1% | rising |
| 6 | Finland | 56.45 Percentage of labour costs | 2025 | up 2.2% | flat |
| 6 | Estonia | 42.64 Percentage of labour costs | 2025 | up 3.6% | rising |
| 7 | Ireland | 52.42 Percentage of labour costs | 2025 | down 6.0% | flat |
| 7 | Poland | 38.25 Percentage of labour costs | 2025 | up 2.8% | falling |
| 8 | Greece | 50.21 Percentage of labour costs | 2025 | up 6.1% | falling |
| 9 | Norway | 49.91 Percentage of labour costs | 2025 | down 1.4% | falling |
| 10 | Spain | 49.66 Percentage of labour costs | 2025 | up 0.2% | rising |
| 11 | United Kingdom of Great Britain and Northern Ireland | 49.57 Percentage of labour costs | 2025 | up 23.2% | rising |
| 12 | Germany | 48.9 Percentage of labour costs | 2025 | down 18.8% | falling |
| 13 | Sweden | 48.57 Percentage of labour costs | 2025 | up 0.7% | falling |
| 14 | Portugal | 47.8 Percentage of labour costs | 2025 | down 11.4% | rising |
| 15 | Israel | 47.18 Percentage of labour costs | 2025 | up 25.7% | flat |
| 16 | Czechia | 45.14 Percentage of labour costs | 2025 | down 7.1% | falling |
| 17 | Denmark | 41.69 Percentage of labour costs | 2025 | down 0.8% | falling |
| 18 | Hungary | 41.15 Percentage of labour costs | 2025 | down 16.1% | falling |
| 19 | United States of America | 40.83 Percentage of labour costs | 2025 | down 6.4% | rising |
| 20 | Iceland | 40.26 Percentage of labour costs | 2025 | down 5.2% | flat |
| 21 | Japan | 37.66 Percentage of labour costs | 2025 | up 1.7% | rising |
| 22 | Australia | 35.9 Percentage of labour costs | 2025 | down 15.4% | rising |
| 23 | New Zealand | 33 Percentage of labour costs | 2025 | up 10.0% | rising |
| 24 | Switzerland | 32.4 Percentage of labour costs | 2025 | up 16.5% | rising |
| 25 | Canada | 31.81 Percentage of labour costs | 2025 | down 7.5% | falling |
| 26 | Mexico | 28.45 Percentage of labour costs | 2025 | up 13.0% | rising |
| 27 | Costa Rica | 27.66 Percentage of labour costs | 2025 | up 4.4% | rising |
| 28 | Chile | 10.59 Percentage of labour costs | 2025 | up 51.2% | volatile |
Regions and income groups
Aggregates are excluded from the country ranking above so that a region can never outrank a country.
- Slovak Republic 46.94 Percentage of labour costs
- Korea 31.15 Percentage of labour costs
About this data
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 AW/APW. Related topics: Taxing Wages, Labour taxation, Tax wedge decomposition, Average wage, Income, Household