The countries with the highest taxes in the world include the Ivory Coast, Denmark, Japan, Austria, and Spain. These nations have high personal income tax rates to fund their universal healthcare systems, education, infrastructure, and social security.
Our guide outlines the 20 countries with the highest taxes, shows the different metrics by which this is measured, and what the tax rates are for corporations and individuals.
Countries with the Highest Taxes: Key Takeaways
How Tax is Measured Internationally
There are three metrics that are generally used when comparing the tax burdens of different countries:
- Top Marginal Personal Income Tax (PIT): This is the highest tax bracket that a country has. If a rate is 55%, it does not necessarily mean that an individual will pay 55% of their income as tax. There are deductions, credits, social contributions, and local taxes that can affect the actual rate that people pay.
- Corporate Income Tax (CIT): A measurement of the statutory corporate taxes that businesses pay. Typically, these taxes are imposed on profits, not revenue.
Tax-to-GDP Ratio: The metric reflects the total amount of tax collected relative to a nation’s economic output or GDP. This captures the relative tax burden of a country and demonstrates a clearer picture of how much tax people pay.
20 Countries with the Highest Taxes
Top marginal personal income tax rate or statutory top refers to what is taxed on the highest income bracket. The actual effective taxes vary according to deductions, social security contributions, and local levies.
20/ United Kingdom
The UK has a progressive income tax system that applies a top marginal rate of 45% on annual income that exceeds £125,140. The corporate tax rate is 25% although there is a small profits rate of 19% for businesses earning less than £50,000 as a way of supporting SMEs.
19/ Germany
In Germany the maximum income tax rate is also 45%, and this can be increased by a 5.5% solidarity surcharge. Corporate tax is nuanced as it combines a federal rate of 15% with local taxes that can result in an effective tax burden of around 30%.
18/ China
The same 45% rate applies in China, as the top bracket of its progressive tax system. The standard rate for corporate tax in the country is 25%, although there is a reduced rate of 15% available for tech businesses to encourage innovation.
17/ South Africa
South Africa has a top marginal rate of 45% on income that exceeds R1.87 million. The nation has a progressive, residence-based system which means that residents are taxed on their worldwide income. Additionally, the corporate tax rate is 27%.
16/ South Korea
The top federal income tax rate is 45% in South Korea, however, there is also a mandatory 10% local income surtax which pushes the effective tax rate even higher. Corporate tax is progressive with a maximum rate of 25%. There are tax credits available for companies involved in research and development.
15/ Switzerland
The top income tax rates in Switzerland vary by canton with a federal rate of a flat 11.5%. Geneva is one of the higher tax areas in the country, and when combining the cantonal and municipal taxes, the marginal rate is approximately 45%. Corporate tax rates also vary by canton, ranging from 12% to 21%.
Taxes in Switzerland support decentralized public infrastructure, that includes excellent public schools, extensive social securities, and universal healthcare services. Those interested in residency in Switzerland should consider the Swiss Residence Permit.
14/ Iceland
Iceland has a three-bracket tax system, and the highest personal rate is 46.29%. It has a corporate tax rate of 20%, which is one of the lowest rates in the Nordic region. This makes it popular for international trade. The nation’s taxes fund social welfare, universal healthcare, education, infrastructure, and social security programs like unemployment.
13/ Italy
Personal income tax in Italy has a maximum of 43% for income over €50,000. However, there are additional regional surcharges that can push the effective rate closer to 48%. The corporate rate is 24%, and companies need to pay a regional production tax of 3.9%.
The Italy Flat Tax Regime helps to lessen the tax burden on high-net-worth individuals by setting a flat rate of €300,000. This is particularly appealing for those moving to the country using the Italy Golden Visa.
12/ Ireland
The top tax rate in Ireland is 48% for individuals and this includes the Universal Social Charge. Corporate tax is particularly low in the country, only 12.5%. Large multinational corporations will pay a rate of 15%.
11/ Portugal
Portugal has a top marginal income tax rate of 48% and an additional solidarity tax that can push this rate to 53% for top earners. Corporate tax is typically 21% in the country, although small businesses can access lower rates of 15% to 17%.
The Portugal NHR 2.0 (IFICI) is a tax scheme that allows foreign individuals to pay a flat rate on their taxes if they become a tax resident of the country. This is an enticing option for skilled professionals moving to the country on the Portugal D3 Visa.
10/ Netherlands
The highest tax bracket in the Netherlands is 49.5% which applies to income over €76,817 per year. Corporate tax uses a tiered system with the first €200,000 of profit being taxed at 19%, and anything over that being taxed at 25.8%. Patented technology can reduce tax to 9% if requirements are met.
09/ Slovenia
Slovenia’s highest income tax rate is 50% and the money gathered from this largely funds social services. In 2026, the corporate tax rate was increased to 22% to fund healthcare initiatives and national reconstruction.
08/ Belgium
Belgium’s 50% maximum tax rate starts at a relatively low income of €48,320. The corporate tax rate is a flat 25%, and there are large deductions available for those generating patent income, or innovating.
07/ Aruba
Aruba is a constituent country of the Netherlands and has a particularly high, top tax rate of 52%. Corporate tax in the nation is 22%. The government will often use tax holidays to drive investment into the country in the renewable energy and tourism sectors.
06/ Sweden
While Sweden’s federal tax rate is low, its municipal rates are high leading to a combined total of 52.3% for the highest earners. Corporate tax is set at 20.6%, which reflects the country’s policy of taxing individuals and consumption. Tax in Sweden funds the welfare system, the high-quality public services, and the exceptional infrastructure.
05/ Spain
Spain has a top federal rate of 45%, but the income tax in the country is decentralized. With regional additions in areas like Madrid, the total tax rate is 54%. Newly created companies receive a lower tax rate of 15%, while the standard corporate rate is 25%.
The Spain Special Expat Regime Tax allows qualifying individuals to pay a reduced flat tax rate of 24% on their Spanish income for up to six years. This is ideal for those living in the nation on the Spain Digital Nomad Visa.
04/ Austria
Austria has a progressive tax system with a top rate of 55% for individuals earning more than €1 million annually. To combat this, the corporate tax rate was recently lowered to 23% so that the country can stay competitive with other Eastern European nations. This tax is used for funding public services like universal healthcare and education.
03/ Japan
Japan has a maximum tax rate of 45%, but there is an additional local tax called the “inhabitant tax” that pushes the rate to 55.95%. Additionally, the corporate tax is also high at approximately 30.6%, which includes local and enterprise taxes. These taxes support public healthcare, pensions, disaster relief, and other social securities.
02/ Denmark
With a maximum rate of 56%, Denmark has the highest taxes in Scandinavia. Social security contributions are paid by income tax, and the corporate tax is a moderate 22%.
01/ Côte d’Ivoire (Ivory Coast)
Côte d’Ivoire has the highest tax in the world with a rate of 60% for top earners. The corporate tax rate is 25%, and the government provides a variety of exemptions for companies that invest in infrastructure and agricultural processing.
Countries with the Highest Taxes: Comparison Table
| Rank | Country | Top Personal Income Tax | Standard Corporate Tax | Tax-to-GDP Ratio |
|---|---|---|---|---|
| 1 | Ivory Coast | 60% | 25% | ~16.1% |
| 2 | Denmark | 56% | 22% | 45.8% |
| 3 | Japan | 55.9% | 30.6% | 33.0% |
| 4 | Austria | 55% | 23% | 43.8% |
| 5 | Spain | 54% | 25% | 38.0% |
| 6 | Sweden | 52.3% | 20.6% | 42.5% |
| 7 | Aruba | 52% | 22% | ~22.0% |
| 8 | Belgium | 50% | 25% | 45.1% |
| 9 | Slovenia | 50% | 22% | 38.0% |
| 10 | Netherlands | 49.5% | 25.8% | 39.0% |
| 11 | Portugal | 48% | 19% | 35.0% |
| 12 | Ireland | 48% | 12.5% | 22.4% |
| 13 | Italy | 47% | 28%* | 42.6% |
| 14 | Iceland | 46.3% | 20% | 36.0% |
| 15 | Switzerland | 45% | 12% – 21% | 27.8% |
| 16 | South Korea | 45% | 25% | 32.0% |
| 17 | South Africa | 45% | 27% | 27.0% |
| 18 | China | 45% | 25% | 20.0% |
| 19 | Germany | 45% | 30% | 39.0% |
| 20 | UK | 45% | 25% | 34.4% |
