How much the average person in 40 different countries takes home after taxes

Justin Sullivan/Getty ImagesThe US tax rate falls between Canada’s and Mexico’s.
  • Tax rates vary in each country, from over 50% to 0% for the average wage earner in the country.
  • Spain, France, and Germany all have the same 30% tax rate for the average citizen, but Germany has the highest average salary.
  • Switzerland and Denmark have the highest pre-tax salaries, but Switzerland’s tax rate is much lower.

The salary you negotiate isn’t the amount you end up receiving in your paychecks. The primary reason: taxes.

It is well known that every country has a different corporate tax rate, but each one also has different tax rates for individuals. CapRelo published a study on tax rates and take home salaries in 40 countries, including the United States, Germany, and China.

Often, salary comparisons in different countries don’t include tax rates. But the higher a country’s tax rate, the bigger the difference between annual pay and take-home pay once taxes are taken out.

A couple of countries in the report have practical tax rates over 50%, while two nations are essentially tax-free for the median earner. This means that two people with similar salaries in different countries can have vastly different paychecks.

Below, the individual tax rate in 40 countries, ranked from highest tax rates to the lowest. The tax rate is what someone making the nation’s average wage would pay. The average citizen’s pay before and after taxes is also included for each country.


40. Denmark

Scanrail1/Shutterstock

Practical tax rate: 56%

Average pre-tax salary: $US64,310

Average post-tax salary: $US28,227


39. Sweden

Chris Jackson/Getty Images

Practical tax rate: 52%

Average pre-tax salary: $US46,804

Average post-tax salary: $US22,410


38. Belgium

Practical tax rate: 45%

Average pre-tax salary: $US47,674

Average post-tax salary: $US26,221


37. Austria

Practical tax rate: 42%

Average pre-tax salary: $US45,819

Average post-tax salary: $US26,575


36. The Netherlands

Practical tax rate: 41%

Average pre-tax salary: $US51,669

Average post-tax salary: $US30,562


33 (TIE). Spain

4kclips/Shutterstock

Practical tax rate: 30%

Average pre-tax salary: $US30,613

Average post-tax salary: $US21,429


33 (TIE). France

Practical tax rate: 30%

Average pre-tax salary: $US40,718

Average post-tax salary: $US28,503


33 (TIE). Germany

Clive Mason/Getty Images

Practical tax rate: 30%

Average pre-tax salary: $US42,369

Average post-tax salary: $US29,658


32. Portugal

artem evdokimov/Shutterstock

Practical tax rate: 29%

Average pre-tax salary: $US18,333

Average post-tax salary: $US13,108


31. Canada

Vlad G/Shutterstock

Practical tax rate: 28%

Average pre-tax salary: $US48,688

Average post-tax salary: $US35,299


29 (TIE). Turkey

TravelSupermarket

Practical tax rate: 27%

Average pre-tax salary: $US11,230

Average post-tax salary: $US8,198


29 (TIE). Italy

Practical tax rate: 27%

Average pre-tax salary: $US32,205

Average post-tax salary: $US23,510


27 (TIE). Croatia

Shutterstock

Practical tax rate: 25%

Average pre-tax salary: $US12,140

Average post-tax salary: $US9,105


27 (TIE). Ireland

Practical tax rate: 25%

Average pre-tax salary: $US56,787

Average post-tax salary: $US42,322


24 (TIE). Slovenia

Jure Gasparic / 500px.com

Practical tax rate: 23%

Average pre-tax salary: $US25,171

Average post-tax salary: $US19,432


24 (TIE). Finland

Shutterstock

Practical tax rate: 23%

Average pre-tax salary: $US45,584

Average post-tax salary: $US34,963


24 (TIE). Latvia

Shutterstock

Practical tax rate: 23%

Average pre-tax salary: $US14,017

Average post-tax salary: $US10,793


23. Greece

Practical tax rate: 22%

Average pre-tax salary: $US19,189

Average post-tax salary: $US14,967


22. Australia

PomInOz / Shutterstock

Practical tax rate: 21%

Average pre-tax salary: $US59,538

Average post-tax salary: $US46,781


21. Estonia

Practical tax rate: 20%

Average pre-tax salary: $US15,726

Average post-tax salary: $US12,581


18 (TIE). Slovakia

Marc Ryckaert / Wikimedia Commons

Practical tax rate: 19%

Average pre-tax salary: $US13,934

Average post-tax salary: $US11,287


18 (TIE). Argentina

Practical tax rate: 19%

Average pre-tax salary: $US11,970

Average post-tax salary: $US9,638


18 (TIE). New Zealand

Practical tax rate: 19%

Average pre-tax salary: $US44,636

Average post-tax salary: $US36,283


17. United States

mangostock / Shutterstock

Practical tax rate: 18%

Average pre-tax salary: $US64,154

Average post-tax salary: $US52,344


14 (TIE). Czech Republic

Photoillustrator/Shutterstock

Practical tax rate: 15%

Average pre-tax salary: $US13,587

Average post-tax salary: $US11,549


14 (TIE). Hungary

Andrew Shiva/Wikipedia, via Wikimedia CommonsThe Hungarian Parliament Building in Budapest.

Practical tax rate: 15%

Average pre-tax salary: $US12,157

Average post-tax salary: $US10,333


14 (TIE). Lithuania

Practical tax rate: 15%

Average pre-tax salary: $US12,538

Average post-tax salary: $US10,657


11 (TIE). Russia

Practical tax rate: 13%

Average pre-tax salary: $US9,720

Average post-tax salary: $US8,456


11 (TIE). United Kingdom

Practical tax rate: 13%

Average pre-tax salary: $US46,252

Average post-tax salary: $US40,169


11 (TIE). Mexico

Practical tax rate: 13%

Average pre-tax salary: $US9,812

Average post-tax salary: $US8,537


9 (TIE). China

Practical tax rate: 12%

Average pre-tax salary: $US8,250

Average post-tax salary: $US7,247


9 (TIE). South Korea

Practical tax rate: 12%

Average pre-tax salary: $US29,125

Average post-tax salary: $US25,754


6 (TIE). Bulgaria

VILevi/Shutterstock

Practical tax rate: 10%

Average pre-tax salary: $US7,580

Average post-tax salary: $US6,822


6 (TIE). Romania

Practical tax rate: 10%

Average pre-tax salary: $US9,480

Average post-tax salary: $US8,532


6 (TIE). Japan

Shutterstock/f11photo

Practical tax rate: 10%

Average pre-tax salary: $US39,089

Average post-tax salary: $US35,279


5. Brazil

Practical tax rate: 8%

Average pre-tax salary: $US8,840

Average post-tax salary: $US8,177


4. Indonesia

Shutterstock

Practical tax rate: 5%

Average pre-tax salary: $US3,400

Average post-tax salary: $US3,230


3. Switzerland

Practical tax rate: 2%

Average pre-tax salary: $US85,718

Average post-tax salary: $US84,006


1 (Tie). India

Practical tax rate: 0%

Average pre-tax salary: $US1,670

Average post-tax salary: $US1,670


1 (TIE).Saudi Arabia

Fedor Selivanov/Shutterstock

Practical tax rate: 0%

Average pre-tax salary: $US21,720

Average post-tax salary: $US21,720

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