& Events

Workers in OECD countries pay one quarter of wages in taxes

May 14, 2018 | News

(14 May 2018) – Workers in OECD countries paid just over a quarter of their gross wages in tax on average in 2017, with just over half of countries seeing small increases in the personal average tax rate.

© CCO Public Domain

‘Taxing Wages 2018’ shows that the “net personal average tax rate” – income tax and social security contributions paid by employees, minus any family benefits received, as a share of gross wages – was 25.5% across the OECD.

This OECD-wide average rate, calculated for a single person with no children earning an average wage, has remained stable in recent years, but it covers country averages that range from below 15% in Chile, Korea and Mexico to over 35% in Belgium (40.5%), Germany (39.9%) and Denmark (35.8%).

More information