Country rankings

European Countries with the Lowest Taxes

Finland has the highest Income Tax Rate in 2024 (57.3%), followed by Denmark (55.9%) and Austria (55.0%). Montenegro has the lowest (9%).

Economics42 countries · 1 metricUpdated Dec 18, 2024Original page
1 source
Income Tax RateBetter directionWhether a higher or a lower value is better. A green arrow means higher is better, a red arrow means lower is better, and no arrow means neither.More in the glossary →
41 of 235 countries
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Income Tax Rate, 2024

Green is better, red is worse (lower is better). Click a place to highlight it.

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All 41 ranked

Best first.

Distribution Median and middle halfThe median is the middle value: half of places are above it, half below. The middle half is the range holding the central 50% of places.More in the glossary →

Each dot is one country; the lines mark the median and the middle half.

Median
35.0%
Middle half 20.0% – 45.0%
Average
32.8%
41 countries
Lowest (best)
9%
Montenegro
Highest (worst)
57.3%
Finland

Over time · 2022–2024

The top 5 in 2024, against the median.

  • Median of all countries
  • Montenegro
  • Romania
  • Bulgaria
  • Serbia
  • Bosnia and Herzegovina

Data

Click a column to sort, a row to highlight that place on the charts.

41 countries · # = rank by Income Tax Rate
#
1Montenegro9%
2Romania10.0%
2Bulgaria10.0%
2Serbia10.0%
2Bosnia and Herzegovina10.0%
6Moldova12.0%
7Russia13.0%
7Belarus13.0%
9Hungary15.0%
10Ukraine18.0%
11Estonia20.0%
12Isle of Man22.0%
13Liechtenstein22.4%
14Czechia23.0%
14Albania23.0%
16Slovakia25.0%
17Croatia30.0%
18Latvia31.0%
19Poland32.0%
19Lithuania32.0%
21Cyprus35.0%
21Malta35.0%
23Norway39.6%
24Turkey40.0%
24Ireland40.0%
26Luxembourg42.0%
27Italy43.0%
28Greece44.0%
29Germany45.0%
29United Kingdom45.0%
29France45.0%
32Iceland46.3%
33Spain47.0%
34Portugal48.0%
35Netherlands49.5%
36Belgium50.0%
36Slovenia50.0%
38Sweden52.0%
39Austria55.0%
40Denmark55.9%
41Finland57.3%

What correlates with Income Tax Rate (2024)?

Pearson r against 1,913 other country metrics sharing at least 25 countries. Ranks are read by standing: a better rank counts as higher, whether rank 1 is the best place on a list or the worst. Correlation is not causation.

Higher together

Places that have a higher Income Tax Rate tend to score higher on these (or rank better)

  1. Personal Income TaxHighest Taxed Countries
    r = +0.99 · very strong · n = 41
    Plot
  2. InfrastructureLogistics Performance Index by Country
    r = +0.87 · very strong · n = 39
    Plot
  3. LP Infrastructure & Market AccessLegatum Prosperity IndexA rank: rank 1 is the best
    r = +0.87 · very strong · n = 39
    Plot
  4. CustomsLogistics Performance Index by Country
    r = +0.86 · very strong · n = 39
    Plot
  5. HealthSocial Progress Index by Country
    r = +0.84 · very strong · n = 39
    Plot
  6. Logistics Performance Index (LPI) Total ScoreLogistics Performance Index by Country
    r = +0.84 · very strong · n = 39
    Plot

Opposite directions

Places that have a higher Income Tax Rate tend to score lower on these (or rank worse)

  1. Heart Disease ASR Death Rate - FemaleHeart Disease Rates by Country
    r = −0.88 · very strong · n = 39
    Plot
  2. Heart Disease ASR DALYs - FemaleHeart Disease Rates by Country
    r = −0.88 · very strong · n = 39
    Plot
  3. Heart Disease ASR Death RateHeart Disease Rates by Country
    r = −0.87 · very strong · n = 39
    Plot
  4. Heart Disease ASR DALYsHeart Disease Rates by Country
    r = −0.84 · very strong · n = 38
    Plot
  5. Heart Disease ASR Death Rate - MaleHeart Disease Rates by Country
    r = −0.83 · very strong · n = 39
    Plot
  6. % With Near BlindnessBlind Population by Country
    r = −0.82 · very strong · n = 39
    Plot

Quick answers

Which country has the highest Income Tax Rate?
Finland has the highest Income Tax Rate in 2024, at 57.3%, followed by Denmark (55.9%) and Austria (55.0%).
Which country has the lowest Income Tax Rate?
Montenegro has the lowest Income Tax Rate in 2024, at 9%.
What is the median Income Tax Rate across countries?
The median is 35.0% across the 41 countries with data in 2024.
Where does this european countries with the lowest taxes data come from?
Rankodex compiles it from World Population Review and the primary sources it cites: List of Countries by Personal Income Tax Rate - Trading Economics.

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