Personal income tax is what a country withholds from an employee’s own pay — separate from what an employer contributes on top. The rate an employee actually pays depends on how much they earn: most countries tax income in bands, starting at a low or 0% rate and rising to a top marginal rate on the highest slice of income. This page tables the bottom and top marginal rates for 42 countries with a parseable bracket table in our country guides, checked July 2026 — for anyone setting expectations on take-home pay before a hire, or comparing tax burden across countries.
Last updated July 24, 2026. Jump to: What this table shows · The country table · Patterns across the data · What it means for employers · How to use this data · FAQ
What this table shows
Almost every country in this table taxes income progressively: the first slice of pay is taxed at a low rate (often 0%), and each higher slice is taxed at a higher rate, up to a top marginal rate on income above the last threshold. Two numbers describe the shape of that scale:
- Bottom rate — the rate on the lowest taxed bracket, exactly as our guide states it. Several countries start at 0% (a tax-free threshold); others tax the first bracket directly.
- Top marginal rate — the rate on the highest bracket, applied only to income above that bracket’s threshold. It is not the rate on someone’s entire income, only on the slice above the top threshold.
A country’s top marginal rate is not the same as what any one person actually pays. Someone earning near the average wage rarely reaches the top bracket at all — their effective rate (total tax divided by total income) is well below the marginal number. The table below states the bracket structure as our guides record it, not an effective or average rate.
Some countries add tax at more than one level — national plus municipal, or federal plus cantonal or provincial. Where our guide’s income-tax field states only one layer (for example a federal scale), the Notes column flags it. Open the country guide for the full picture.
Income tax rates by country
The table lists the bottom and top marginal personal income-tax rates for 42 countries, drawn from our country guides and checked July 2026. Each country name links its full guide, where the complete bracket table, thresholds, and any deductions or reliefs are set out. Figures are exactly as each guide states them — not converted to a single average.
| Country | Bottom rate | Top marginal rate | Notes |
|---|---|---|---|
| Argentina | 5% | 35% | 9 brackets |
| Australia | 0% | 45% | Tax-free up to AUD $18,200 |
| Austria | 0% | 55% | — |
| Azerbaijan | 3% | 14% | General employees; oil/gas and public sector run 14%–25% |
| Belgium | 25% | 50% | — |
| Brazil | 0% | 27.5% | Monthly gross income |
| Canada | 15% | 33% | Federal only; provincial tax adds more |
| Chile | 0% | 40% | Annual income |
| Colombia | 0% | 39% | Annual income |
| Croatia | 20% | 30% | Two brackets, split at EUR 60,000 |
| Cyprus | 0% | 35% | — |
| Denmark | 8% | 56.5% | Bottom is AM-bidrag only; top includes state, church, and municipal tax |
| Egypt | 0% | 27.5% | Annual gross income |
| Finland | 12.64% | 37.50% | Taxable earned income |
| France | 0% | 45% | High earners add a 3%–4% surtax on total household income |
| Germany | 0% | 45% | 14%–42% progressive between the first and second thresholds |
| Ghana | 0% | 35% | Annual income |
| Greece | 9% | 44% | — |
| India | 0% | 30% | Annual income |
| Indonesia | 5% | 35% | Annual income |
| Italy | 23% | 43% | Three brackets |
| Jordan | 5% | 30% | Personal exemption of JOD 9,000 applies (JOD 18,000 for households) |
| Kenya | 10% | 35% | Monthly income; personal relief of KES 2,400/month applies |
| Lithuania | 20% | 32% | Two brackets, split at EUR 126,532 |
| Malta | 0% | 35% | Single-rate scale shown; married and parent scales differ |
| Mexico | 1.92% | 35% | Monthly income; 11 brackets |
| Morocco | 0% | 38% | Annual income |
| Namibia | 0% | 37% | Annual income |
| New Zealand | 10.5% | 39% | No 0% bracket — 10.5% from the first dollar |
| Nigeria | 7% | 24% | Consolidated Relief Allowance further reduces taxable income |
| Norway | 0% | 17.4% | Bracket tax component only, as our guide states it; not the full income-tax structure |
| Peru | 8% | 30% | Bands set in UIT, a reference unit updated annually |
| Poland | 12% | 32% | Two brackets, split at PLN 120,000 |
| Portugal | 12.50% | 48% | Nine brackets |
| Singapore | 0% | 24% | Annual income; 13 brackets |
| Slovakia | 19% | 35% | — |
| South Africa | 18% | 45% | Annual gross income |
| Spain | 19% | 47% | — |
| Sweden | 0% national | 20% national + municipal | Municipal tax (typically 30%–35%) applies at every income level |
| Switzerland | 0% | 11.50% | Federal only; cantonal tax adds significantly (roughly 10%–40%+ depending on canton) |
| Tunisia | 0% | 35% | Annual income; personal and family deductions apply first |
| Turkey | 15% | 40% | Annual gross income |
Source: our country guides, checked July 2026. Rates are the statutory bracket structure as each guide records it. Open a country’s guide for the full table, exact thresholds, and any deductions or reliefs.
Patterns across the data
A few things stand out looking across all 42 countries at once:
- A large share start at 0%. Of the 42 countries in the table, 19 tax the first slice of income at 0%, effectively a tax-free threshold. The rest — including Argentina, Croatia, Finland, Italy, Kenya, Lithuania, New Zealand, Poland, Slovakia, and Turkey among others — tax income from the first unit earned, with no 0% band. For context on what a low-wage salary looks like in these countries, see our guide to minimum wage by country.
- Top marginal rates cluster in the high 30s to mid-40s. Austria (55%) and Denmark (56.5%, combining several layers) sit at the high end; Azerbaijan (14% for general employees) and Switzerland’s federal-only rate (11.50%) sit at the low end, though both have caveats — Azerbaijan’s figure is the general-employee scale, and Switzerland’s cantons add substantially more.
- A flat or near-flat scale is rare but real. Croatia, Lithuania, and Poland run only two brackets each, so most of their working population sits at one of just two rates.
- Where a country splits its tax across levels of government, our table understates the full burden. Canada’s figures are federal only; Switzerland’s are federal only; Sweden’s national rate is layered on top of a substantial municipal rate that applies from the first income earned. Always check the guide before using a headline number for a real budget.
What it means for employers
Income tax is withheld from the employee’s own pay — it is not an employer cost, and it does not change what a company spends on a hire. But it does change what the hire ends up seeing on a payslip, and that matters for two practical reasons.
First, salary conversations get easier when both sides understand the local tax scale. A candidate comparing a job offer in Portugal (top marginal rate 48%) against one in Singapore (top marginal rate 24%) is comparing very different take-home outcomes on the same gross figure — the offer needs to be framed accordingly, especially for candidates relocating between the two.
Second, income tax withholding is a compliance obligation, not just a number. Whoever runs payroll in a country has to calculate the bracket correctly, apply the right thresholds and reliefs, and remit on schedule. Getting a country’s withholding wrong exposes both the employer and the employee to penalties. This is one of the reasons a company hiring in a country where it has no entity typically uses an employer of record: the EOR is the legal employer, so it runs payroll — including income-tax withholding — under local law. Our guide to what an employer of record is explains the model in full.
Income tax also sits alongside the employer’s own on-costs — pension, social insurance, and other statutory contributions paid on top of gross salary. Those are a separate, employer-side number; see our guide to employer payroll taxes by country for that side of the ledger.
How to use this data
This table is a statutory estimate — not tax or legal advice. Real withholding depends on filing status, deductions, local reliefs, and rules our guides summarize but do not exhaustively cover. Treat the bottom and top rates as a starting reference for a conversation, not a payroll calculation.
To turn a gross salary into an all-in employer cost — which is a separate number from income tax — use our employment cost calculator. It runs country-specific calculators, with dedicated pages for India, Australia, Canada, Germany, Spain, France, Singapore, Brazil, Mexico, and Portugal.
For the full statutory picture behind any single row — exact bracket thresholds, deductions, reliefs, and how income tax interacts with social contributions — open that country’s guide from the country guides index. Each guide also covers employer on-costs, statutory benefits, leave, and end of employment in the same place.
Frequently asked questions
What is the top income tax rate by country?
It varies widely. Among the 42 countries in our table, Denmark has the highest combined top marginal rate at 56.5% (state, church, and municipal tax combined), followed by Austria at 55%, Belgium at 50%, and Portugal at 48%. At the low end, Switzerland’s federal-only top rate is 11.50% (before cantonal tax) and Azerbaijan’s general-employee top rate is 14%. Always check whether a figure is a combined rate or just one layer of tax.
Which countries have no income tax on lower earners?
Many countries tax the first slice of income at 0%, effectively a tax-free threshold — Australia, Austria, Chile, Colombia, Cyprus, Egypt, France, Germany, Ghana, India, Malta, Morocco, Namibia, Singapore, and Tunisia among them in our table. The threshold amount differs by country, and income above it is taxed progressively, so a 0% bottom rate does not mean tax-free overall.
What is the difference between a marginal rate and an effective rate?
The marginal rate is what applies to the next unit of income within a specific bracket — it is what our table shows for the bottom and top brackets. The effective rate is total tax paid divided by total income, blending every bracket a person’s income passes through. Because progressive systems only tax each slice at its own bracket rate, most people’s effective rate is well below the top marginal rate that applies to their income.
Is income tax the same as the cost of employing someone?
No. Income tax is withheld from the employee’s own pay — it does not add to what a company spends on the hire. The employer-side cost is a separate figure made up of statutory contributions (pension, social insurance, and similar) paid on top of gross salary. See our guide to employer payroll taxes by country for that number, or use the employment cost calculator for a full all-in figure.
Why do some countries in the table show more than one tax layer?
Several countries split personal income tax across levels of government. Canada and Switzerland’s figures here are federal only, with provincial or cantonal tax adding more on top. Sweden’s national rate sits on top of a municipal tax that applies from the first income earned. Denmark’s figures already combine state, church, and municipal tax. The Notes column flags these cases — open the country guide for the complete picture.
How current are these income tax rates?
The figures were checked July 2026 against our country guides, which are refreshed on a monthly cadence. Tax brackets and thresholds change with each country’s own budget cycle, sometimes annually, so treat this table as a snapshot rather than a permanent reference, and confirm current figures with local counsel or payroll before making a compliance decision.
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