Top 5 Countries That Charge Highest Income Tax

Being a student, you must have heard of various taxes, cess, fee, or charges that your parents or you pay to the government. Have you ever thought what these duties are meant for? A country provides different services to its people and to fund them they require money. So, a fraction of your wealth is being used in carrying out those development operations. If you are from any European country, then you must be aware of the fact that these countries charge extra income tax amount from their unmarried nationals. This article consists of some data which came from Organization for Economic Co-operation and Development (OECD). It was stated in the report of OECD that Belgium collects highest taxes in the world from both single and married taxpayers. There are other countries too that collect high income tax from their citizens. Are you interested in knowing more about them? If yes, then read this article further:-

1.) Hungary

There is something that makes the taxation system of this country unique from the rest of the list. In Hungary, a flat personal income tax is followed instead of a progressive one. There is a flat rate of 16% which applies to all income groups. However, it may sound low, but actually it is not for everyone with low income. The Government of Hungary provides deductions for professional & skill development training and business travel expenses, and also families have to pay less tax if they have children.

2.) Austria

This country was ranked 2nd in 2015, but in 2017 its position slipped down to 4th in the list. Austria collects an average income tax rate of 34.9% from the unmarried countrymen. To curtail the miseries, the country has provided certain work-related and child-care expenses as tax deductible.

3.) Denmark

Danes pay the third highest taxes, i.e., 36.1% of their salary to the government. Still, it is the happiest country in the world. The secret lies in the tax deductions policies of Denmark government. It offers relaxations for various schemes such as unemployment insurance, interest on the debt, limited contributions to approved Danish pensions, charitable contributions, unreimbursed work travel, and double households.

4.) Germany

Among the developed countries across the world, Germany is second only to Belgium in collecting income tax from the folks. If somebody is single in this country, then the tax costs 39.7% of his salary. But, again there are incentives for the wedlock with children as Germany's tax wedges are much lower for them, i.e., only 34 percent.

5.) Belgium

It is real and shocking at the same time that average Belgian worker files 42% of his salary back to the government as an income tax and social security. Belgium’s taxation system is quite similar to some of the other countries in the world. In Belgium, a progressive tax system is applied to the countrymen according to which, the person with high-income has to pay more taxes than the low-income individual. But, their government has shown a bit of mercy to the married couples as they can claim certain marriage tax benefits by signing a Belgian marriage contract.

These were the five of the developed countries that collect the highest income cess from their unmarried countrymen. However, it is important to note that income tax rates vary country-to-country because of the quality of social services that the government provides such as old age pensions and healthcare. Hope you liked this article given by the experts of economics assignment help services.

Author’s Bio: Adam Jackson is an academic writer working with Assignment Prime. He is an expert in micro and macroeconomics, and his zest lies in assisting the Australian students with their assignment writing tasks.