Staff pay not solely earnings tax but in addition social safety contributions. Collectively, these two parts make up the private common tax charge, expressed as a proportion of gross wage incomes. This mixed charge is also known as the “tax burden”.
Private common tax charges range considerably throughout Europe and have a tendency to alter yearly in most international locations, instantly affecting web earnings.
So, which international locations had the best private earnings tax and worker social safety contributions in 2024? And the place had been the most important annual will increase or decreases in private common tax charges noticed?
In response to the OECD’s Taxing Wages 2025 report and Eurostat information, amongst EU international locations, the UK, three EFTA members, and candidate nation Turkey, private earnings tax charge diverse from 4.1% in Cyprus to 35.7% in Cyprus.
These figures mirror the common wage of a single employee with out kids, offered in nationwide foreign money values.
Worker social safety contributions ranged from zero in Denmark to 29.9% in Romania, adopted by Slovenia 23.6%. These charges don’t embrace what employers additionally pay for social safety. They’re typically equal to or much more than the worker’s share.
Vital hole in private common tax charges
In 2024, private common tax charges differed from 15.6% in Cyprus to 39.7% in Belgium. Meaning two out of each 5 euros in gross wage went to taxes in Belgium.
In seven EU international locations, private common tax charges exceeded one-third of gross earnings. Apart from Belgium, this group included Lithuania (38.2%), Germany (37.4%), Romania (36.9%), Denmark (35.7%), Slovenia (35.6%) and Hungary (33.5%).
In 5 further EU international locations, private common tax charges exceeded 30%: Austria (32.7%), Luxembourg (32.1%), Croatia (30.9%), Italy (30.4%), and Finland (30.3%).
General, in 12 EU international locations, at the very least three out of each ten euros of a employee’s wage go on to earnings tax and social safety contributions.
Other than Cyprus, Switzerland is the one nation the place the private common tax charge stays beneath 20%. It was additionally beneath 25% stage in Estonia (20.5%), Czechia (21%), the UK (21.4%), Bulgaria (22.4%), Spain (22.5%), Sweden (23.1%), Poland (24%) and Slovakia (24.1%).
UK lowest, Germany highest : 16 proportion level hole
Amongst Europe’s high 5 economies, Germany has the best private common tax charge at 37.4%. Italy follows with 30.4%, which is 7 proportion factors decrease. France sits within the center at 28%. The UK has the bottom charge at 21.4%, with Spain barely above at 22.5%.
There’s a 16 proportion level distinction between Germany and the UK, which is essentially as a consequence of a big hole in worker social safety contributions: 20.7% vs 5.9%.
Adjustments in common tax charges in 2024
In additional than half of the international locations, annual adjustments in private common tax charges had been minimal, ranging between -2% and +2%, with no change in any respect in just a few international locations.
Nevertheless, some international locations noticed important will increase or decreases. Italy recorded the best rise, with its private common tax charge climbing from 28.3% to 30.4%—a rise of seven.5%, or greater than 2 proportion factors.
Cyprus adopted with a 6.9% enhance. The private common tax charge additionally rose by greater than 4% in Slovenia, Estonia, and Czechia.
The UK (-8.6%) and Portugal (-8%) had been clear outliers in 2024, with main tax cuts leading to private common tax charge reductions of at the very least 8%. In each the UK and Portugal, the charges fell by greater than 2 pp.
Two Nordic international locations—Sweden and Denmark—additionally lower their charges, each by 3.7%.
In Southern Europe, tax charges principally elevated in 2024, significantly in Italy, Cyprus, and Spain. In Japanese Europe, the pattern was blended, with some international locations seeing will increase whereas others remained unchanged.
Household state of affairs issues
All of the figures above are based mostly on a single common wage earner with out kids. Private common tax charges can range considerably relying on household state of affairs—particularly as a consequence of adjustments in private earnings tax.
Usually, single people with out kids pay the best earnings tax, whereas households with kids are likely to pay much less, which lowers their common tax charge.
For information on totally different marital statuses and household varieties, see our full article entitled: Private Earnings Tax Charges in Europe.