International Income Tax Rates

January 11, 2016

Tax rates of all kinds differ depending on the country you’re living in, and income taxes are no exception. If planning on moving to another country and becoming a citizen within the next few years, whether for business or pleasure, it’s a good idea to research income tax rates first. Your Encino tax consultants are always available to help you understand international income tax rates, and offer the following information to get you started:

Countries With the Highest Income Tax Rates 

As of 2013 countries with the highest income tax rates included Aruba, Sweden, and Denmark at 58.95%, 56.6%, and 55.56%, respectively. The Netherlands and Spain were close behind at 52%, with Finland and Japan following at 51.13% and 50.84%. Ironically, Denmark is consistently voted as one of the happiest countries on Earth, yet has one of the highest income tax rates! In 2014 countries with high income tax rates included Australia at 59.30%, Germany at 60.61%, Brazil at 73.32%, and Russia at an astounding 87%.

How The U.S. Fares

So how does the United States fare in regards to international income rate comparisons? Your Encino tax consultants note the U.S. was on the lower side of this rate comparison at about 39% (as of 2013), which put it below the United Kingdom, Italy, Greece, Chile, and South Africa among others. However, that number jumped to 60.45% in 2014 based on New York state tax.

The Swiss Component

The concept of a “Swiss bank account” is a long-running joke for a reason! The Swiss government isn’t known for overtaxing its citizens, particularly in terms of income. As of 2016 this European government taxes income some 13%, if at all.

For more tax help, contact your Encino tax consultants at Wallace & Associates today.