Here Are The Countries With The Highest Income Tax Rate

Last Updated on July 26, 2018

Here Are The Countries With The Highest Income Tax Rate© BoredArticles.com

There are many people who don’t care about other economies, how they operate, and how it affects the global economy, but it is actually a very smart move to understand everything about it because there are many socialist countries that have higher income tax, which means they provide free college, free health care, etc.

Currently, there are four countries that have the highest income taxation based on an international comparison. They have demonstrated progressive tax systems with the highest income earners, who also pay the highest % in taxable income.

If you are interested in the world of economy, here are the countries that have high income tax. Don’t forget to click on Next to read on

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Austria: 34.9%

Austria

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If you combine the tax of Austria with other tax forms included, the tax would go up to 55%, but in general, it is 34.9%. The rise could happen because of the employer wages, benefits, and many other reasons.

Other tax forms include earnings on investments as well as the capital gains and being taxed 27.5%. On the other hand, tax payers pay 18% for social security, like business expanses, child expanses (can be deductable), and specific work expanses.

The one unique thing about the economy of Austria would be the tax credits that are provided because they are literally money that can be subtracted from your tax payments.

These credits could be gained because an appliance got updated to a more efficient version or because you decreased your housing’s total cost. In general, Austria supplies those credits based on work, income factors, and children.

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Denmark: 36.1%

Denmark

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The average individual in Denmark will pay 45% in tax, while the most anyone with an income could pay is 55.8% and here is how it all breaks down:

– $155 for social security.
– 42% (or 27%) on capital gains.
– 22.5%-27.8% in municipal tax.
– 27% on dividends.
– 5% for healthcare.

However, the church tax is not high, and 43% to 1.4% of it is voluntary, like a charitable donation could also be a tax deduction.

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Germany: 39.7%

Germany

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Germany is also a progressive tax system, which means the taxes earners who are within the top bracket give 39.7% for employment wages, capital gains, investments/savings, and business ownership. Plus, and oddly enough, the church tax of Germany is 8% to 9%.

However, even the taxes are high, but Germany offers free tuition. Plus, tax payers are insured for healthcare with a certain % of their pay that put toward insurance.

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Belgium: 42.0%

Belgium

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The economy of Belgium is a progressive tax system, and when the individual has a high income, then he/she will pay more in tax. People in top tax bracket are obligated to pay 50% of their income, and that’s not including social security. As for that, they will pay 13.07% from their income.

An individual can still deduct some social contributions and business expenses from the taxes, but in general, Belgium is the country with the highest income tax in the world!

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