8-Jun-06 Personal Income Top Marginal Tax Rate,

Transcription

1 8-Jun-06 Personal Income Top Marginal Tax Rate, Australia 47% 47% 47% 47% 47% 47% 47% 47% 47% 47% 47% 48% 49% 49% Austria 50% 50% 50% 50% 50% 50% 50% 50% 50% 50% 50% 50% 50% 62% Belgium 50% 55% 55% 55% 55% 55% 55% 55% 55% 55% 55% 55% 55% 70.70% Canada 29% 29% 29% 29% 29% 29% 29% 29% 29% 29% 29% 29% 29% 29% Czech Republic 32% 32% 40% 40% 40% 40% 43% 44% 47% 55% 55% Denmark 26% 28% 59% 58% 60% 65% 63.50% 64.50% 68% 68% 68% 68% 68% 68% Finland 34% 38% 38% 38% 38% 39% 39% 39% 39% 39% 39% 43% 44% 51% France 48% 53% % 56.50% 56.50% 51.79% 51.79% 51.79% 51.79% Germany 42% 51% 53% 53% 53% 53% 53% 53% 53% 53% 53% 53% 56% 56% Greece 40% 45% 45% 45% 45% 45% 45% 40% 40% 50% 50% 50% 50% 50% Hungary 38% 40% 40% 42% 42% 48% 44% 44% 40% 40% 50% 50% Iceland 27% 33% % Ireland 42% 44% 46% 46% 48% 48% 48% 48% 48% 52% 53% 56% 58% 58% Italy 43% 45% 46% 46% 51% 51% 51% 51% 51% 51% 50% 50% 50% 62% Japan 37% 37% 50% 50% 50% 50% 50% 50% 50% 50% 50% 50% 50% 60% Korea, Republic of 35% 40% 40% 40% 40% 40% 45% 45% 50% 50% 50% 50% 50% 55% Luxembourg 38% 46% % 50% 50% 50% 50% 50% 56% 56% 56% Mexico 30% 40% 40% 35% 35% 35% 35% 35% 35% 35% 35% 35% 40% 50% Netherlands 52% 60% 60% 60% 60% 60% 60% 60% 60% 60% 60% 60% 72% 72% New Zealand 39% 39% 33% 33% 33% 33% 33% 33% 33% 33% 33% 33% 40.50% 48% Norway 27% 29% 28% 28% % 13.70% 13.70% 13.70% 13% 14% 17% 19% 23% Poland -- 40% 40% 40% 44% 45% 45% 45% 40% 40% Portugal 40% 40% 40% 40% 40% 40% 40% 40% 40% 40% 40% 40% 40% 50% Slovak Republic 19% 42% 42% 42% 42% 42% 42% Spain 29% 40% 40% 48% 56% 56% 56% 56% 56% 53% 56% 56% 56% 56% Sweden 25% 25% 31% 31% 30% 30% 30% 30% 30% 20% 20% 65% 72% 75% Switzerland 12% 12% -- 13% 13% 11.50% 11.50% 11.50% 11.50% 11.50% 11.50% 11.50% 11.50% 11.50% Turkey 35% 40% 40% 45% 55% 55% 55% 55% 50% 50% 50% 50% 50% 50% United Kingdom 40% 40% 40% 40% 40% 40% 40% 40% 40% 40% 40% 40% 60% 60% United States 35% 40% 39.60% 39.60% 39.60% 39.60% 39.60% 39.60% 39.60% 31% 28% 28% 28% 28% Page 1 of 3

2 Personal Income Top Marginal Tax Rate, continued Australia 57.08% 60% 60% 60% 60% 60% 60% % % 65% Austria 62% 62% 62% 62% 62% 62% 62% 62% 62% 62% 62% 62% 62% Belgium 70.70% 71.13% 71.55% 71.55% % 76.32% 76.32% 76.32% % Canada 34% 34% 34% 34% % 62.78% % % Czech Republic Denmark 22% 39.60% 39.60% 39.60% -- 70% 70% -- 66% % 40% Finland 51% 51% 51% 51% 51% 51% 51% 51% 51% % 51% France 53.10% 61.35% 65% 70% -- 60% 60% 60% 60% 60% 60% 60% 60% Germany 56% 56% 56% 56% 56% 56% 56% 56% 56% 56% 56% 56% 56% Greece 63% 63% 63% 63% -- 60% 60% 60% 60% % Hungary Iceland % Ireland 58% 60% 65% 65% -- 60% 60% 60% 60% % 77% Italy 62% 62% 65% 65% -- 72% 72% 72% 72% 72% 72% 72% 72% Japan 70% 70% 70% 75% -- 93% 93% 93% 93% % Korea, Republic of 55% 55% 55% 55% % 79.05% % Luxembourg 58.80% 57% 57% % 58.43% 58.43% 58.43% % 57% Mexico 55% 55% 55% 55% 55% 55% 55% 55% 55% % -- Netherlands 72% 72% 72% 72% 72% 72% 72% 72% 72% % New Zealand 57% 66% 66% 60% 60% 60% 60% 60% 60% 60% 60% 60% 60% Norway 34% 40% 40% 40.50% % 65.40% % % 73% Poland Portugal 50% 60% 60% 70% % 77.50% -- 80% % -- Slovak Republic Spain 66% 66% 66% 66% % 65.60% 65.50% 65.50% % Sweden 77% 80% 80% 82% -- 85% 85% % % 87% Switzerland 11.50% 11.50% 11.50% 11.50% -- 40% 42% -- 41% % Turkey 50% 50% 55% 60% -- 65% % United Kingdom 60% 60% 60% 60% 60% 60% 60% -- 83% 83% 83% 83% 83% United States 38.50% 50% 50% 50% 50% 50% 69.13% 70% 70% 70% 70% 70% 70% Page 2 of 3

3 Personal Income Top Marginal Tax Rate, continued 1. Belgium: : average tax rate may not exceed 71.55% 2. Canada: : This tax rate is the one applicable in Ontario. The rate will fluctuate depending upon the province in which an employee resides; 1984: The top marginal tax rate (federal + provincial) for Ontario is 51.14%; : The listed brackets do not include provincial income taxes; 1986: There is a federal surtax of 5%, reckoned on the listed basic tax; : There is a federal surtax of 3%, reckoned on the listed basic tax. 3. Denmark: 1975: The rate includes only the state income tax : This rate includes the state income tax, the state welfare tax and local income taxes; : This rate is only the top state income tax rate. The combined rate (including the state income tax, the state welfare tax and local income taxes) cannot exceed 73%; 1987: This rate is only the tax rate on taxable income. The combined top marginal income tax rate cannot exceed 68%; : This rate includes the state income tax together with a local tax rate of 28%. 4. Finland: 1975: This rate includes only the federal rate; : In addition to the listed national income tax, the taxpayer has to pay municipal and 5. France: : This is the top tax bracket for a married couple; : The top marginal tax rate was imputed from a table that outlined tax liabilities at different levels of income. 6. Germany: : This is the top tax bracket for a married couple. 7. Ireland: : This is the top tax bracket for a married person. 8. Japan: Rate includes only the national tax, except from when is includes both the national and local tax. Maximum tax payable (national + local) limit as percent of taxable income : 80%; : 80%; 1984: 80%; : 78%. 9. Korea: : Includes defense and resident tax; : Does not include defense and resident tax. 10. Luxembourg: : This is the top tax bracket for a married couple. 11. Mexico: 1989: When total income exceeds 30,223,200 pesos, the total taxable income is subject to a flat tax rate of 40% ; : a nonrefundable credit of 10% of the yearly minimum wage is allowed; : The listed brackets will be adjusted each quarter to reflect the increase in the National 12. Netherlands: : This is the top tax bracket for a married couple; : On top of the listed rates, a national insurance tax may be levied. 13. New Zealand: 1984: In addition, there is a 10% surtax on tax rates applicable to incomes over NZ$24, Norway: 1979, : This is the top tax bracket for a married couple; This rate includes a maximum state rate of 48% in 1979, 38% in 1981, and 43% in 1982; it also includes a local income tax of 23% and a social security tax of 4.4%; : Brackets include both federal and state income tax rates.; : This is the top tax rate on salary income. It does not include local taxes on income. 15. Portugal: : This is the top complementary marginal tax rate on married persons. In addition to this, a professional tax is levied on incomes over a certain threshold. 16. Spain: Maximum total amount of tax as percentage of taxable income: 1979: 40% reached at Pts. 10,005,000; 1981: 40%, reached at 10,925,000; 1982: 42%, reached at 10,894, Sweden: 1976, 1979: This rate includes both state and local income taxes. Average rate for local income tax : 26%; 1979: 28.5%; : This rate includes the basic state tax and the supplemental state tax rate; : This rate only includes the national tax on employment income. 18. Switzerland: : This is the tax rate for a resident of Geneva. It includes federal, cantonal, and communal taxes for a married couple. Single persons pay a top tax rate of 44%; : This is the federal tax rate on income. It does not include cantonal, and communal taxes. Note further that this is the average tax rate - levied on total income when income level exceeds that of the top bracket. 19. United Kingdom: : This is the top tax bracket for a married couple. 20. United States: The top marginal tax rate shown here applies to married couples filing jointly. The top tax rate does not include the effects of phasing-out personal exemptions or itemized deductions data is from the OECD Tax Database, Table I.5. Central government personal income tax rates and thresholds, Accessed May 12, 2006 Source: World Tax Database, Office of Tax Policy Research. Downloaded from on July 16, 2002.

4 Taxation of Wage Income (2004) Top marginal personal income tax rates for employee 1 Top marginal rates Country Combined All-in Statutory Income Tax Rate Threshold (multiple APW) 2 APW 3 Threshold in $ (using PPP) 4 Australia 48.5% 48.5% 48.5% ,222 50,414 Austria 42.9% 42.9% 50.0% ,946 74,581 Belgium 45.1% 59.3% 53.5% ,281 41,422 Canada 46.4% 46.4% 46.4% ,912 94,682 Czech Republic 28.0% 40.5% 32.0% ,573 28,386 Denmark 54.9% 62.9% 59.7% ,192 38,166 Finland 50.3% 56.7% 52.1% ,449 60,363 France 37.0% 47.2% 55.7% ,087 87,691 Germany 47.5% 60.5% 47.5% ,088 56,911 Greece 33.6% 49.6% 40.0% ,525 38,450 Hungary 56.0% 69.5% 38.0% 1.2 1,260,948 11,505 Iceland 42.0% 42.0% 43.6% 1.5 2,859,073 44,642 Ireland 42.0% 48.0% 42.0% ,291 28,011 Italy 41.4% 51.6% 46.1% ,683 89,894 Japan 47.1% 47.8% 50.0% 5.3 4,205, ,710 Korea 36.6% 39.2% 39.6% ,534, ,270 Luxembourg 33.9% 47.8% 38.9% ,586 40,560 Mexico 26.6% 28.9% 33.0% ,432 16,844 Netherlands 52.0% 52.0% 52.0% ,457 54,889 New Zealand 39.0% 39.0% 39.0% ,778 40,540 Norway 47.5% 55.3% 47.5% ,101 95,011 Poland 26.2% 51.6% 40.0% ,584 50,260 Portugal 35.6% 46.6% 40.0% 6.7 8,905 87,686 Slovak Republic 8.4% 21.8% 19.0% ,000 5,352 Spain 45.0% 45.0% 45.0% ,913 66,415 Sweden 56.5% 56.5% 56.5% ,282 47,614 Switzerland 37.8% 47.9% 42.1% , ,458 Turkey 40.6% 40.6% 40.6% ,670,289, ,270 United Kingdom 40.0% 41.0% 40.0% ,079 56,409 United States 41.4% 42.9% 41.6% , ,049 Footnotes at end of table. Page 1 of 2

5 Taxation of Wage Income (2004)--continued [Footnotes] Key to abbreviations: Combined: The combined central government and sub-central government (top marginal) rate, calculated as the additional central and sub-central government personal income tax resulting from a unit increase in gross wage earnings. The combined rate takes account of the effects of tax credits, the deductibility of sub-central taxes in central government taxes etc. Statutory: These are the statutory tax rates (combined central and sub-central) that apply at the threshold level reported in the fourth column. All-in: The all-in (top marginal) tax rate, calculated as the additional central and sub-central government personal income tax, plus employee social security contribution, resulting from a unit increase in gross wage earnings. The all-in rate takes account of the same aspects as the combined rate, but does in addition include employee social security contributions and if they are deductible in central government taxes etc. APW: Average production wage (in national currency), meaning the average annual gross wage earnings of adult, full-time manual workers in the manufacturing sector. Threshold: The multiple of the APW earnings at which the reported combined top marginal rate is first observed. Explanatory notes: 1. This table reports for each country the marginal combined personal income tax rate on gross wage income (derived according to the OECD Taxing Wages framework) for a single person without dependants based on the earnings level where the top statutory rate first applies. The third column shows the gross wage earnings threshold at which the top combined rate is met, measured as a multiple of the APW. The table also reports the 'All-in' rate at this threshold. The results, which use tax rates applicable to the tax year, take into account basic/standard income tax allowances and tax credits. The marginal tax rates are derived on the basis of a unit increase in gross wage earnings at the column 3 threshold. The reported marginal tax rate may not be the maximum possible marginal tax rate. A higher rate may be observed for higher income earners where tax allowance provisions may be diminished or eliminated as is the case in Belgium, France, Luxembourg, Mexico and Switzerland. A higher rate may also be possible at lower levels of income where there is a withdrawal of a tax relief as is the case in Italy, New Zealand, the United Kingdom and the United States. The figures reported may be different from those published in Taxing Wages where updated information is available, such as revised APW figures. Further explanatory notes may be found in the Explanatory Annex. 2. This column reports the level of gross wage earnings (expressed as a multiple of APW) at which the top marginal combined personal income tax rate is reached. 3. This column shows the average production wage, as described in OECD Taxing Wages. 4. This column shows the average production wage in USD, using OECDs purchasing power parity exchange rates. Country-specific footnotes: Source: OECD Tax Database.

6 Taxation of Wage Income (2000) Top marginal personal income tax rates for employee 1 Top marginal rates Country Combined All-in Statutory Income Tax Rate Threshold Threshold in $ (multiple APW) 2 APW 3 (using PPP) 4 Australia 47.0% 48.5% 48.5% ,567 43,939 Austria 50.0% 50.0% 50.0% , ,071 Belgium 52.6% 65.7% 60.5% 2.6 1,169,841 3,259,382 Canada 44.7% 44.7% 44.7% ,982 63,504 Czech Republic 28.0% 40.5% 32.0% ,327 26,556 Denmark 54.3% 63.3% 59.7% ,600 36,515 Finland 52.6% 59.8% 55.2% , ,804 France 47.3% 48.1% 61.3% , ,236 Germany 53.8% 53.8% 53.8% , ,521 Greece 45.0% 45.0% 45.0% 4.9 3,557,014 25,139,950 Hungary 40.0% 41.5% 40.0% ,444 18,603 Iceland 43.1% 43.1% 45.4% 1.5 2,247,855 34,710 Ireland 44.0% 50.5% 44.0% ,333 17,772 Italy 46.4% 46.4% 46.4% ,853, ,083,177 Japan 45.5% 49.5% 50.0% 5.3 4,297, ,322 Korea 44.0% 50.7% 44.0% ,217, ,413 Luxembourg 47.2% 47.2% 47.2% 3.0 1,179,930 3,535,442 Mexico 40.0% 40.0% 40.0% , ,574 Netherlands 60.0% 60.0% 60.0% , ,038 New Zealand 39.0% 39.0% 39.0% ,807 40,920 Norway 47.5% 55.3% 47.5% ,800 85,985 Poland 26.4% 51.2% 40.0% ,596 45,409 Portugal 35.6% 46.6% 40.0% 4.9 1,532,224 11,395,009 Slovak Republic 36.6% 49.4% 42.0% ,263 83,731 Spain 48.0% 48.0% 48.0% 5.0 2,495,112 16,597,544 Sweden 55.4% 55.4% 55.4% ,220 44,514 Switzerland 39.4% 49.4% 43.8% , ,464 Turkey 35.6% 35.6% 40.6% 5.9 5,545,029, ,221 United Kingdom 40.0% 40.0% 40.0% ,290 51,393 United States 46.7% 48.1% 46.5% , ,813 Footnotes at end of table. Page 1 of 2

7 Taxation of Wage Income (2000)--continued [Footnotes] Key to abbreviations: Combined: The combined central government and sub-central government (top marginal) rate, calculated as the additional central and sub-central government personal income tax resulting from a unit increase in gross wage earnings. The combined rate takes account of the effects of tax credits, the deductibility of sub-central taxes in central government taxes etc. Statutory: These are the statutory tax rates (combined central and sub-central) that apply at the threshold level reported in the fourth column. All-in: The all-in (top marginal) tax rate, calculated as the additional central and sub-central government personal income tax, plus employee social security contribution, resulting from a unit increase in gross wage earnings. The allin rate takes account of the same aspects as the combined rate, but does in addition include employee social security contributions and if they are deductible in central government taxes etc. APW: Average production wage (in national currency), meaning the average annual gross wage earnings of adult, fulltime manual workers in the manufacturing sector. Threshold: The multiple of the APW earnings at which the reported combined top marginal rate is first observed. Explanatory notes: 1. This table reports for each country the marginal combined personal income tax rate on gross wage income (derived according to the OECD Taxing Wages framework) for a single person without dependants based on the earnings level where the top statutory rate first applies. The third column shows the gross wage earnings threshold at which the top combined rate is met, measured as a multiple of the APW. The table also reports the 'All-in' rate at this threshold. The results, which use tax rates applicable to the tax year, take into account basic/standard income tax allowances and tax credits. The marginal tax rates are derived on the basis of a unit increase in gross wage earnings at the column 3 threshold. The reported marginal tax rate may not be the maximum possible marginal tax rate. A higher rate may be observed for higher income earners where tax allowance provisions may be diminished or eliminated as is the case in Belgium, France, Luxembourg, Mexico and Switzerland. A higher rate may also be possible at lower levels of income where there is a withdrawal of a tax relief as is the case in Italy, New Zealand, the United Kingdom and the United States. The figures reported may be different from those published in Taxing Wages where updated information is available, such as revised APW figures. Further explanatory notes may be found in the Explanatory Annex. 2. This column reports the level of gross wage earnings (expressed as a multiple of APW) at which the top marginal combined personal income tax rate is reached. 3. This column shows the average production wage, as described in OECD Taxing Wages. 4. This column shows the average production wage in USD, using OECDs purchasing power parity exchange rates. Country-specific footnotes: Source: OECD Tax Database.