How Much Do You Pay in Taxes Compared to Residents of Other Countries? Take a Look
munKNEE
Monday, May 14th, 2012
Posted by Editor
munknee.com
It seems that Americans (and particularly those who vote Republican) are  always complaining about how much they pay in personal income taxes. Frankly, however, they have absolutely nothing to complain about when compared to what the citizens of Canada, Australia, the U.K., New Zealand, Germany, Belgium and almost all other countries pay. Here’s a list of 20 countries of note showing what their effective tax rates are at the equivalent of USD100,000 and USD300,000 for comparative purposes.
This synopsis has been put together by Lorimer Wilson, editor of www.munKNEE.com (Your Key to Making Money!) from KPMG’s 84-page International Individual Income Tax and Social Security Rate Report to ensure you a fast and easy read. This paragraph must be included in any article re-posting to avoid copyright infringement. Rather than report on all 96 countries covered in the report I have limited coverage to those countries from which most of the visitors to this site come from plus some other countries that have been very much in the news lately.
What you see below is a ranking of the tax rates of the 20 countries selected, in ascending order (that is, from lesser to greater), based on the combined effective income tax and social security rate on the equivalent of USD100,000 and on the equivalent of USD300,000 followed by the ranking at that income level:
These 11 Countries Have Low Tax Rates at Both USD100,000 & USD300,000 Income Levels
- Switzerland: 17.7% and 31.5% (4th)
- Singapore: 20.0% and 18.5% (1st)
- U.S.A.: 24.3% and 29.8% (2nd)
- Australia: 25.3% and 37.2% (7th)
- China: 26.0% and 36.5% (6th)
- New Zealand: 27.4% and 31.1% (3rd)
- Japan: 28.3% and 37.8% (8th)
- Canada: 30.3% and 40.8% (10th)
- U.K.: 31.0% and 41.6% (11th)
- Spain: 31.7% and 39.2% (9th)
- Malaysia: 31.8% and 35.3% (5th)
Other Countries of Note
- Ireland: 36.05 and 47.0% (16th)
- Portugal: 38.5% and 46.3% (15th)
- India: 39.4% and 41.8% (12th)
- France: 42.0% and 53.0% (19th)
- Italy: 42.6% and 50.0% (18th)
- Germany: 43.0% and 43.9% (13th)
- Greece: 43.5% and 44.5% (14th)
- Netherlands: 47.6% and 47.6% (17th)
- Belgium: 47.9% and 55.5% (20th)
(Note: Effective rates are derived by taking total taxes over gross income prior to any deductions (which may include social security) to allow for a better comparison, as deductions can vary greatly across countries. In addition to federal taxes, the US calculation factors in the income taxes of the state of New York as a national number (state income taxes vary by state), the Canadian calculation factors in the income taxes of the province of Ontario (which vary by province) and the Swiss calculation factors in Zurich canton and community income taxes which may vary by canton throughout the country.) For a complete list of all 96 countries in the report go here.
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