Updated 25 October 2026
Quick answer: A single worker on an average wage keeps about 75% of their gross pay across the 38 OECD countries after income tax and employee social security contributions. Workers keep the least in Belgium (60.5%), Germany and Lithuania (61.3%), Slovenia (63.8%) and Denmark (64.7%), and the most in Colombia (100%, because the average wage falls below the income tax threshold), Chile (92.9%), Costa Rica (90.2%), Mexico (86.8%), South Korea (83.5%) and Switzerland (81.9%). In the United States, an average earner on $73,500 keeps 75.7%; in the UK, 76.9%; Canada, 74.4%; Australia, 76.5%; Japan, 77.4%; France, 72.0%. Higher earners keep less: at 1.67 times the average wage, Belgians keep 52.6% and Americans 70.8%. The interactive table below shows all 38 countries, with figures for lower and higher earners when you tap a country.
Comparing taxes between countries is notoriously difficult. Headline income tax rates leave out social security contributions, which in much of Europe take more than income tax; tax-free allowances differ; and some countries tax at state or local level too. The fairest comparison is the one the OECD publishes every year in its Taxing Wages report: how much of an actual worker's pay goes to the government, all taxes included. This guide uses that official data for the 2025 tax year, published in April 2026.
| Country | Take-home | Taxes |
|---|---|---|
| BelgiumAverage wage: about $88,000 (PPP) | 60% kept | 39.5% |
| GermanyAverage wage: about $94,000 (PPP) | 61% kept | 38.7% |
| LithuaniaAverage wage: about $57,000 (PPP) | 61% kept | 38.7% |
| SloveniaAverage wage: about $54,000 (PPP) | 64% kept | 36.2% |
| DenmarkAverage wage: about $88,000 (PPP) | 65% kept | 35.3% |
| HungaryAverage wage: about $46,000 (PPP) | 66% kept | 33.5% |
| AustriaAverage wage: about $86,000 (PPP) | 68% kept | 32.5% |
| LuxembourgAverage wage: about $93,000 (PPP) | 68% kept | 32% |
| FinlandAverage wage: about $73,000 (PPP) | 69% kept | 30.7% |
| TürkiyeAverage wage: about $55,000 (PPP) | 71% kept | 29.3% |
| ItalyAverage wage: about $61,000 (PPP) | 71% kept | 28.6% |
| NorwayAverage wage: about $88,000 (PPP) | 72% kept | 28.1% |
| FranceAverage wage: about $67,000 (PPP) | 72% kept | 28% |
| NetherlandsAverage wage: about $93,000 (PPP) | 72% kept | 27.9% |
| IcelandAverage wage: about $84,000 (PPP) | 73% kept | 27.2% |
| GreeceAverage wage: about $51,000 (PPP) | 74% kept | 26.1% |
| LatviaAverage wage: about $43,000 (PPP) | 74% kept | 26% |
| CanadaAverage wage: about $82,000 (PPP) | 74% kept | 25.6% |
| IrelandAverage wage: about $81,000 (PPP) | 75% kept | 25.1% |
| OECD averageAverage wage: about $64,000 (PPP) | 75% kept | 25.1% |
| PortugalAverage wage: about $46,000 (PPP) | 75% kept | 24.9% |
| PolandAverage wage: about $54,000 (PPP) | 76% kept | 24.4% |
| SlovakiaAverage wage: about $38,000 (PPP) | 76% kept | 24.3% |
| United StatesAverage wage: about $74,000 (PPP) | 76% kept | 24.3% |
| AustraliaAverage wage: about $79,000 (PPP) | 76% kept | 23.5% |
| SpainAverage wage: about $58,000 (PPP) | 76% kept | 23.5% |
| EstoniaAverage wage: about $43,000 (PPP) | 77% kept | 23.2% |
| United KingdomAverage wage: about $82,000 (PPP) | 77% kept | 23.1% |
| JapanAverage wage: about $60,000 (PPP) | 77% kept | 22.6% |
| SwedenAverage wage: about $66,000 (PPP) | 77% kept | 22.6% |
| IsraelAverage wage: about $59,000 (PPP) | 79% kept | 21.4% |
| CzechiaAverage wage: about $45,000 (PPP) | 79% kept | 21.3% |
| New ZealandAverage wage: about $57,000 (PPP) | 79% kept | 20.8% |
| SwitzerlandAverage wage: about $107,000 (PPP) | 82% kept | 18.1% |
| South KoreaAverage wage: about $68,000 (PPP) | 83% kept | 16.5% |
| MexicoAverage wage: about $21,000 (PPP) | 87% kept | 13.2% |
| Costa RicaAverage wage: about $33,000 (PPP) | 90% kept | 9.8% |
| ChileAverage wage: about $31,000 (PPP) | 93% kept | 7.1% |
| ColombiaAverage wage: about $21,000 (PPP) | 100% kept | 0% |
What the Numbers Measure
For each country, the OECD calculates what a single person without children, earning the country's average full-time wage, pays in:
- Income tax at all levels of government: national, state or regional, and local. In the US, this includes federal and state income tax for a representative state; in Switzerland and the Nordic countries, cantonal or municipal taxes.
- Employee social security contributions, which pay for pensions, health care and unemployment insurance. In many European countries, these take more than income tax.
- Minus any cash benefits the worker receives, such as in-work tax credits.
The result, which the OECD calls the net personal average tax rate, is the share of gross pay that goes to the government. What is left is take-home pay. It does not include consumption taxes such as VAT or sales tax, property taxes, or the contributions employers pay on top of wages.
Where Workers Keep the Least
- Belgium: 39.5% in tax and contributions. Belgium combines high social security contributions (13.07% for employees) with steep income tax rates that reach 50% at fairly modest incomes. It has the highest tax burden on labour in the OECD.
- Germany: 38.7%. Income tax, a solidarity surcharge for higher earners, and employee contributions of about 21% of pay for pensions, health, long-term care and unemployment.
- Lithuania: 38.7%. Lithuania shifted almost all social security contributions to employees in a 2019 reform, which is why its employee burden is high but its employer costs are low.
- Slovenia (36.2%), Denmark (35.3%), Hungary (33.5%) and Austria (32.5%). Denmark collects almost all of this as income tax rather than social contributions; Hungary uses a flat 15% income tax plus 18.5% employee contributions.
Where Workers Keep the Most
- Colombia: 0%. The average wage of about COP 31.5 million a year falls below the income tax threshold, and the OECD treats Colombia's pension and health contributions as payments to privately managed or earmarked funds rather than taxes.
- Chile (7.1%), Costa Rica (9.8%) and Mexico (13.2%). Low income taxes for average earners, with pensions mostly funded through individual accounts.
- South Korea: 16.5%.
- Switzerland: 18.1%, despite having the highest average wage in the OECD (about $106,500 at purchasing power parity). Taxes vary a lot by canton.
- New Zealand: 20.8%, which has no social security contributions at all and funds its state pension from general taxes.
The United States, UK, Canada and Australia
For a single worker on the average wage, the major English-speaking countries are close to the OECD average:
- United States: 24.3%. On an average wage of $73,520, that is federal income tax, state and local income tax, and 7.65% Social Security and Medicare contributions. Take-home is about $55,600. The burden varies a lot by state: nine states, including Texas and Florida, have no income tax on wages.
- United Kingdom: 23.1%. On an average wage of about £56,000, income tax at 20% and 40% plus National Insurance at 8% (2% above the upper limit).
- Canada: 25.6% on about C$92,400, including federal and provincial income tax and CPP and EI contributions.
- Australia: 23.5% on about A$108,700. Australia has no employee social security contributions, but income tax is higher, and employers pay 12% superannuation on top of wages.
Measured this way, an American on the average wage pays a similar share of their pay to a Briton or Australian, and less than the typical Western European. The bigger difference is in what the taxes buy: European contributions include public health insurance and larger pensions, while many Americans pay separately for health insurance through their employer.
Higher Earners Pay a Lot More in Some Countries
Tax systems differ most at higher incomes. Tap any country in the table to see the rate at 1.67 times the average wage, typical of a well-paid professional. At that level:
- Belgium takes 47.4%, Germany 42.3%, Denmark 41.6%, Italy 39.9% and Slovenia 39.7%.
- The United States takes 29.2%, the UK 30.7%, Canada 31.1% and Australia 28.7%.
- Switzerland takes 22.9% and South Korea 20.9%.
Some countries, such as Hungary, Estonia and Lithuania, have nearly flat systems in which higher earners pay almost the same share as average earners. Others, including Italy, Ireland and the Netherlands, become much more progressive as incomes rise: an Irish worker on two-thirds of the average wage pays 16.1%, compared with 35.4% at 1.67 times the average.
Families With Children Pay Much Less
The figures in the table are for a single person without children. Families pay considerably less in most countries, because of child benefits, tax credits and allowances for dependants. For a one-earner married couple with two children on the average wage, the OECD finds that the share of pay going to tax, after cash benefits, falls to:
- OECD average: 14.7%, compared with 25.1% for a single worker.
- United States: 13.1%, thanks to the child tax credit and joint filing.
- Canada: 14.6%; Australia: 16.4%; Japan: 17.2%.
- France: 16.9%, because its family quotient system divides taxable income into "parts" that depend on the size of the household.
- United Kingdom: 19.1%, and Germany: 21.3%, where the gap between singles and families is smaller.
- Poland and Slovakia: close to zero, and Colombia below zero, meaning benefits exceed taxes for such a family.
So the country rankings for families look quite different from those for single people. If you are comparing countries for a move, check the figures for your own household type.
The Hidden Part: Employer Contributions
Workers do not see one of the biggest taxes on labour: the social security contributions employers pay on top of wages. In France, employers pay contributions of more than 25% of gross pay for an average worker; in Sweden, about 31%; in Italy and Spain, around 24% to 30%. In the US and UK, employer payroll taxes are lower, and in New Zealand there are none.
The OECD's broader measure, the tax wedge, adds these employer contributions to show the total gap between what a worker costs their employer and what they take home. The OECD average was 35.1% in 2025, the highest since 2016. Belgium (52.5%), Germany (49.3%), France (47.2%) and Austria (47.1%) have the largest wedges; Colombia, Chile and Mexico the smallest. Tap a country to see its wedge. Most economists think workers ultimately bear much of the employer contribution through lower wages, so the wedge is a better guide to the true cost of taxes on work than the employee rate alone.
Countries With No Income Tax
Several countries outside the OECD levy no personal income tax on wages, including the United Arab Emirates, Saudi Arabia, Qatar, Kuwait and Bahrain in the Gulf, and the Bahamas, Bermuda, the Cayman Islands and Monaco. They fund government spending through oil and gas revenues, corporate taxes, fees or VAT instead. Citizens of some Gulf states still pay social security contributions, and expatriates often face high living costs. Oman has announced a 5% income tax on high earners from 2028, which would make it the first Gulf state to tax wages.
Moving to a zero-tax country does not automatically free you from tax at home. The United States taxes its citizens wherever they live, and many countries continue to tax people who keep strong ties, such as a home or family, after moving. Our guide What Happens to Your Retirement Savings When You Move Abroad? covers what happens to pensions and savings when you move.
How to Work Out Your Own Take-Home Pay
The table shows typical rates. Your own taxes depend on your income, family, deductions and, in some countries, where you live. To estimate your take-home pay:
- Start with gross pay and subtract pension contributions that are tax-deductible, such as 401(k) contributions in the US, workplace pensions in the UK or superannuation salary sacrifice in Australia.
- Subtract allowances. Most countries have a tax-free amount, such as the UK personal allowance of £12,570 or the US standard deduction of $15,750 for single filers in 2025.
- Apply the tax brackets to what is left. Remember that a higher rate applies only to income above each threshold, not to your whole salary.
- Subtract social security contributions, which often apply from the first unit of pay and may be capped at higher incomes.
- Add any credits, such as child benefits or earned-income credits.
Every tax authority publishes an official calculator; it is the most reliable way to check. If you are weighing a pay rise, remember that the extra amount is taxed at your marginal rate, which can be much higher than your average rate. Our guide What Is a Fair Pay Raise in 2026? How to Work Out Your Real Raise After Inflation shows how to work out what a raise is worth after tax and inflation.
Ways to Pay Less Tax Legally
- Use tax-advantaged retirement accounts. Contributions to 401(k)s and IRAs in the US, workplace and private pensions in the UK and Europe, RRSPs in Canada and superannuation in Australia usually reduce your taxable income now.
- Use tax-free savings accounts, such as ISAs in the UK, TFSAs in Canada and Roth IRAs in the US, where growth is not taxed.
- Claim every allowance and credit you are entitled to: work expenses, child care, education, charitable donations and, in some countries, mortgage interest.
- Consider salary sacrifice for pensions, cycling schemes or electric cars, where available.
- Check your tax code or withholding. Errors are common, especially after a job change or with several jobs.
Data Notes
All figures are from the OECD's Taxing Wages 2026 report, covering the 2025 tax year, for a single person without children earning the average full-time wage (and two-thirds and 1.67 times that wage when you tap a country). Rates include income taxes at all levels of government and employee social security contributions, net of cash benefits. Average wages are converted to US dollars at purchasing power parity, which adjusts for price differences between countries. Tax rules changed in several countries in 2026; the OECD will publish 2026 figures in spring 2027, and we will update the table then.
Frequently Asked Questions
Which country has the highest income tax?
For an average earner, Belgium takes the largest share of pay in income tax and employee social security, 39.5%, followed by Germany and Lithuania (38.7%). By top income tax rate alone, countries such as Finland, Japan, Denmark and Austria have combined top rates of 55% or more at the highest incomes.
Which country has the lowest taxes on salaries?
Among OECD countries, Colombia, Chile, Costa Rica and Mexico take the smallest share of an average worker's pay. Outside the OECD, the UAE, Saudi Arabia, Qatar, Kuwait, Bahrain, the Bahamas and Monaco have no personal income tax.
How much tax do Americans pay compared with Europeans?
An average American worker pays 24.3% of their pay in income tax and payroll taxes, close to the OECD average of 25.1% and less than most Western Europeans. Germans pay 38.7%, the French 28.0% and Britons 23.1%.
What percentage of my salary will I take home in the UK?
About 77% for a single person on the average wage of about £56,000, after income tax and National Insurance. Lower earners keep more and higher earners less.
Why do Belgium and Germany take so much?
Mostly because of social security contributions, which pay for public health insurance, pensions and unemployment benefits. Those benefits are generous, so part of what looks like tax would be paid as insurance premiums or private pension contributions elsewhere.
Do families with children pay less tax?
Yes, in almost every country. For a one-earner couple with two children on the average wage, the OECD average falls to 14.7% of pay, from 25.1% for a single worker, because of child benefits and tax credits.
Does this include sales tax and VAT?
No. The figures cover taxes on wages only. Consumption taxes, property taxes and employer contributions are extra.
Final Thoughts
Across rich countries, an average worker keeps roughly three-quarters of their pay, but the range is wide, from about 60% in Belgium and Germany to more than 85% in Latin America and South Korea. Much of the difference comes from social security contributions rather than income tax, and much of it reflects what governments provide in return: health care, pensions and unemployment insurance.
For your own planning, the most useful number is your marginal rate, the tax on your next unit of income. It tells you what a raise is really worth, how much a pension contribution saves and whether overtime pays. Your tax authority's calculator will give you the exact figure.
Sources
- OECD: Taxing Wages 2026
- OECD Data Explorer: Taxing Wages comparative tables
- GOV.UK: Income Tax rates and Personal Allowances
- GOV.UK: National Insurance rates
- Canada Revenue Agency: tax rates and income brackets
- Tax Foundation: state income tax rates and brackets
- Australian Taxation Office: how much super to pay
Related Guides
- Compare Countries 2026: Minimum Wage, Tax, Mortgage Rates, Energy and Pension Age in 35 Countries
- What Is a Fair Pay Raise in 2026? How to Work Out Your Real Raise After Inflation
- Salary Increase Forecasts 2027 by Country: Every Major Survey in One Table
- What Happens to Your Retirement Savings When You Move Abroad?
- Tax-Free Countries: Nations With No Income Tax
- Income Tax Exemptions and Deductions in the United States
Figures from the OECD's Taxing Wages 2026 report (tax year 2025). This article is for information and isn't tax advice; check your own position with your tax authority or an adviser.
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