(30 October 2019) – The tax-to-GDP ratio, meaning the sum of taxes and net social contributions as a percentage of Gross Domestic Product, stood at 40.3% in the EU in 2018. In the euro area, tax revenue accounted for 41.7% of GDP.
The tax-to-GDP ratio varies significantly between Member States, with the highest share of taxes and social contributions in percentage of GDP in 2018 being recorded in France (48.4%), Belgium (47.2%) and Denmark (45.9%), followed by Sweden (44.4%), Austria (42.8%), Finland (42.4%) and Italy (42.0%).
At the opposite end of the scale, Ireland (23.0%) and Romania (27.1%), ahead of Bulgaria (29.9%), Lithuania (30.5%) and Latvia (31.4%) registered the lowest ratios.
Compared with 2017, the tax-to-GDP ratio increased in sixteen Member States in 2018, with the largest rise being observed in Luxembourg (from 39.1% in 2017 to 40.7% in 2018), ahead of Romania (from 25.8% to 27.1%) and Poland (from 35.0% to 36.1%).
In contrast, decreases were recorded in seven Member States, notably in Denmark (from 46.8% in 2017 to 45.9% in 2018), Hungary (from 38.4% to 37.6%) and Finland (from 43.1% to 42.4%).