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๐Ÿ”Ž The Worldโ€™s Big Tax Map: How Much Do You Pay?

๐Ÿ”Ž The Worldโ€™s Big Tax Map: How Much Do You Pay?

Key Takeaways

  • Western European countries on average have the highest headline income tax rates
  • Important to note, the rate shown is marginal and only applicable on the highest portion of an individual's income
  • Middle eastern countriesโ€”also oil producersโ€”donโ€™t charge an income tax
  • Data for this map is sourced from PwCโ€™s Worldwide Tax Summaries, updated between Aug 2024โ€“Feb 2025.

โš–๏ธ The Pros and Cons of Western Europeโ€™s High Tax Rates

High taxes help fund extensive public services like healthcare, education, and social security.

It can also reduce income inequality by redistributing wealth, supporting lower-income citizens, and fostering social cohesion.

However, less disposable income leads to less consumer spending. And better-skilled workers with higher earnings may relocate, leading to brain drain from the region