Who pays more tax? See where you fall in Europe’s income tax divide in World Economy News 11/05/2026 Europe’s personal income tax rates differ significantly in 2025, with dependent children lowering tax burdens in several countries. Personal income tax rates vary widely across Europe. Policies and tax structures contribute to these differences. Income level, marital status and the number of dependent children all play a significant role in determining how much of gross wage earnings goes to tax. So, which European countries levy the highest and which the lowest personal income taxes on gross wages? Based on the OECD’s Taxing Wages 2026 report, Euronews Business takes a closer look at income tax rates. Social security contributions are not included in these rates. Single person without children The first scenario is a single person without children, earning 100% of the average wage. In 2025, for this option, personal income tax (PIT) varies from 6.6% in Poland to 35.3% in Denmark among 27 European countries, 22 of which are EU members. The EU-22 average stands at 17.2%, while the OECD average is slightly lower at 15.5%. Denmark is the only country exceeding 30%, while Iceland (27.1%) and Belgium (25.6%) are above 25%. Tax rates also exceed 20% in Estonia (21.6%), Finland (21.1%), Ireland (21%) and Norway (20.4%). Among Europe’s top economies, Italy (19.1%) and the UK levy above the EU average while Germany (17.2%) matches it. Spain (17.1%) and France (16.7%) are slightly below. In addition to Poland, Czechia (9.7%) is also in single digits. Switzerland and Slovakia also remain below 12%. One-earner couple with two children In most cases, a one-earner couple with two children pays less tax than a single person without children. The EU (17.2% vs 11%) and OECD (15.5% vs 11%) averages reflect this. In this scenario, income tax rates vary from -6.5% in Slovakia to 31.8% in Denmark. A negative tax rate means taxes are refunded rather than deducted. Germany comes close to that threshold, imposing just a 0.7% rate. A one-earner couple with two children also pays less than 5% in Poland (1.1%), Czechia (3.3%), Portugal (4.5%) and Slovenia (4.7%). In this scenario, the rate still exceeds 20% in Estonia (21.6%), Finland (21%), Iceland (20.4%) and Norway (20.4%). Two-earner couple with two children In the third scenario, a two-earner couple with two children, both earning 100% of the average wage, pays slightly less tax than a single person without children. The EU-22 and OECD averages are 15.5% and 14.3% respectively. In this scenario, rates range from 4.7% in Slovakia to 35.3% in Denmark. Alex Mengden, economist at Tax Foundation, explained that in general, under a flat income tax system, households with two children are subject to the same PIT whether one or two earners. With progressive tax systems, two-earner couples pay higher taxes. Why tax mix matters for country differences Edoardo Magalini, analyst and statistician at OECD and also co-author of the report, points to various reasons for country-level differences. “First, countries have different approaches to their “tax mix”, depending on their revenue needs, the structure of their economy and also the historical development of their fiscal institutions,” he told Euronews Business. “Some countries might depend more on the use of VATs or taxes on different types of income (such as corporate income taxes, capital income taxes, etc.), while others might depend more on labour taxes.” Income tax