Ever wondered what the 10 countries with the highest tax rates are? Look no further as we list down the ten countries that would take most of your hard earned pay as tax. As for most of the workforce, we are aware of the significance of tax. This mandatory form of currency for the government is what drives the public sector’s finances. From construction projects like infrastructure and civil works, to educational and awareness campaigns, there is no doubt that a government needs taxes in order to sustain and maintain its country. With that said it’s curious to see how some countries take a larger amount of money compared to others. Some would even call the margin at 50%, with some arguing that half of what we earn is too much to be taken by the government. Interestingly, half of the list goes beyond the 50% margin.
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Take into consideration, that we list the highest tax rates from the highest earners of each country. There might be some restrictions or exemptions depending on the laws and rules of the country, as you may see in some examples below. Other readers may find that the tax written here isn’t the same as what is being taken from their pay. You’ll find that a lot of people do not fall under the category of being under this high amount of tax.
If you’re interested in living the lavish life among the cheapest countries to live in the world, then check out our list of the 10 Cheapest Countries to Live in the World.
Let’s go ahead to the first country of high tax rate:
10. Finland
With one of the best educational system in the world and one of the best places to work at as a teacher, providing the best and quality services does not come cheap. It shows with high earners from Finland having a 49.2% tax rate.
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9. Italy
You’ll notice that most of the countries that are included in the list occupy the European continent, and we hit the first country here in Italy with a 49.5% tax rate. The beautiful culture of this country does come at a price with high earners getting almost half of their tax rate. Not unusual considering the costs of living in a few of the most beautiful cities on earth.
8. Japan
The next three countries to mention all have a similar tax rate, the differences between them though is the line they draw this large amount of tax. Japan is the first and only Asian country to be included in this list. They have a tax rate of 50% only for ultra-high earners and high profile companies like Nintendo.
7. Austria
Another country to hit the 50% mark, a good percentage of the population falls into this category. Mainly because the percentage included in this tax rate already have expensive and fancy health care and pension plans.
6. France
Considered as one of the most romantic countries in Earth, high-earners and millionaires may find it a little short lived considering the 50% tax imposed on them.
5. Netherlands
The Dutch are the first to go over half at a 52% tax rate for most of their high earners and skilled workers. Surprisingly a good portion of their population goes under this rate and gets more than half of their money taxed. From individuals to businesses, no one is free from their dues, and that’s why Netherlands is among the 10 countries with the highest tax rates in the world.
4. Belgium
Belgium is the home of the best chocolate in the world and the most taxes. Despite the beauty and diversity of the country, most of the residents and businesses have around a 53% tax rate, which was originally a few years ago just on the margin.
3. Sweden
Sweden has one of the highest tax rates in the world and also has more billionaires per capita compared to the US. The main reason for this is that despite the high tax rates in Sweden at 56% a lot of benefits are included in the country such as free education, high quality health care programs and even pension plans.
2. Aruba
Relatively unknown to most, Aruba is part of the kingdom of Netherlands and is a country amidst the Caribbean. Curious enough, most of the neighbouring countries around Aruba feature a tax rate of zero compared to its high 58.9% nearing 60%.
1. Denmark
None can outclass Denmark, especially on taxes. The only country to go on to 60% tax for its high earners, Denmark is still considered as one of the best places to live in and sports a population rivalling the happiest among the world. Denmark sports the best benefits for their small population even at such a tax rate.
There you have it the 10 Countries with the Highest Tax Rates, a lot of things to consider if you decide to live in one of these countries.
