Tax Rates In Europe - Income Tax Calculator

This is a list of the maximum potential tax rates around Europe for certain income brackets. It is focused on three types of taxes: corporate and individual taxes and value added taxes (VAT). It is not intended to represent the true tax burden to either the corporation or the individual in the listed country.

Summary list

The quoted income tax rate is, except where noted, the top rate of tax: most jurisdictions have lower rate of taxes for low levels of income. Some countries also have lower rates of corporation tax for smaller companies. In 1980, the top rates of most European countries were above 60%. Today most European countries have rates below 50%.

Per country information

Portugal

Income tax in Portugal depends on the number of people in the household. The taxable income is calculated based on the number of household and marital status.

Germany

German income tax comprises 5 income tax bands, with the first two being based on a totally Progressive tax rate and the rest being flat rate. Taxable income is derived after subtracting personal and child allowances from earned income. In addition a number of other deductions may be claimed by German taxpayers.

• Personal allowance: €8,355 per adult
• Child allowance: €7,008 per child

Netherlands

Income tax in the Netherlands (Loonheffing) and social security contributions are combined in one payroll tax. There are no personal tax-free allowances

France

Income tax in France depends on the number of people in the household. The taxable income is divided by the number of persons belonging to the household. Each adult counts as one person while the first two children count as half each. From the third child onwards each child counts as one person. Therefore, a household comprising 2 adults and 3 children is considered to be a household of 4 persons for tax purposes

Spain

Spanish income tax includes a personal tax free allowance and an allowance per child. In 2012 a special temporary surcharge was introduced as part of austerity measures to balance the budget. The personal allowance currently stands at €5,151.

• 1st child €1,836
• 2nd child €2,040
• 3rd child €3,672
• 4th & subs €4,182

Italy

• Personal Allowance: €800 per adult
• Allowance per child: €1,120

United Kingdom

Income tax for the United Kingdom is based on 2016/17 tax bands. The current tax free threshold on earnings is £11,000. The relief is tapered by £1 for every £2 earned over £100,000.

Denmark