Income Tax Paying Nations With Highest and Lowest Ratio

An income tax is a percentage of your income the state imposes on you and organizations. This portion of your income is taken under the tax laws of every country. .By law, citizens must record a pay expense form yearly to decide their duty commitments.

Many people fancy working abroad because of their handsome salaries. This might be a trick because usually there is a huge tax on the money you make and you can end up moving to a country to earn some extra cash but ending up paying more taxes than what is left of your salaries.

Here we bring to you the Top 10 highest and lowest income tax paying nationalities. We also bring you a list of countries where there is no income tax at all, surprising for many right? So let’s dig into the list of top 10 countries with the highest income taxes. These results are based on a survey held in Dec 2018.

Top Ten Countries with Income Tax Ratio

Serial # Country Income Tax Range
1 Sweden 61.85 61.85: 51.5
2 Chad 60.00 60: 60
3 Ivory Coast 60.00 60: 60
4 Aruba 59.00 60.1: 59
5 Japan 55.95 55.95: 50
6 Denmark 55.80 65.9: 55.4
7 Austria 55.00 55: 50
8 Belgium 53.70 60.6: 53.7
9 Netherlands 52.00 60: 52
10 Finland 51.60 62.2: 49


Income tax in Sweden is the highest making it top our today’s list of highest income tax implementing countries. Income tax in Sweden is deducted by the employers via a systematic approach (a PAYE framework) and paid specifically by the business to the Swedish Tax Agency.

Sweden has a tax assessment framework for money from work that joins a pay charge (paid by the worker) with government managed savings commitments (bosses commitments) that are paid by the employers. The all-out pay cost for the business is consequently the gross pay in addition to the social security contributions. The employers make month to month primer derivations (PAYE) for income tax and furthermore pay the government contribution to the Swedish Tax Agency.

The income tax rate in Sweden has changed from 56.78 percent to 61.85 percent during 1995-2018. It is a record in history as the highest rate of income tax so far with a recorded lowest of 51.50 percent in 2000.


Chad Tax ratio

Chad being the second toper on the list has a 60 percent income tax making its workforce quite disappointed. The average is 60.00 from 2013-2016 with a recorded low and high of 60 percent in 2014 and 2016 respectively.

Ivory Coast

The General Income Tax (IGR) applies to the worldwide net pay of physical people in Ivory Coast. It includes two kinds of tax: scheduler charges (investigative or extraordinary duty on payment) and general pay charge. Assessable salary is respectively equivalent to the non-excluded total of overall gain and the non-absolved aggregated net of the considerable number of individuals from the expense family unit.

The IGR is along these lines individual, worldwide, yearly and declarative. The personal income tax in Ivory Coast is 60 percent of your income making it rank at third in the list.


The income tax in Aruba is 59 percent right now with the recorded lowest of 59 percent in 2007. The income tax has an average of 59.22 percent from 2004-2018. This country is currently at its peak in the history of highest income taxes was making a 60.10 in 2015 and a recorded lowest of 59 percent in 2007.


Japan Tax ratio

There is a spouse deduction that some have argued discourages women from entering the workforce full-time. If a married couple has a collective earning more than 1.03 million with 380,000 million coming from a spouse, the couple cannot take the marital deduction in the income tax. And if the couple’s combined income is less than 1.03 million with 760,000 million yen earned by the spouse you cannot take the special marital deduction.

Apart from that, the income tax is 55.95 percent with an average of 51.36 between 2004-2018. The recorded lowest is 50 percent in 2005 and recorded highest in 2016 at an income tax of 55.95 percent.


Denmark despite from being one of the most famous fashion hubs for men scores a 6th position on the list of highest income taxpayers. The income tax is 55.80 percent with recorded lowest and highest of 55.40 and 65.90 in 2010 and 1997 respectively. The average income tax between the years 1995-2018 is 60.45 percent.


This magnificent country runs on taxes making 42.7 percent of GDP in 2016 according to the World Bank. It is the most major revenue generator of the state which runs by collecting income tax, value-added tax, and tax on goods and services.

Austria Tax ratio

The Personal Income Tax Rate in Austria remains at 55 percent. Individual Income Tax Rate in Austria arrived at an average of 50.63 percent from 1995 until 2018, achieving an unequaled high of 55 percent in 2016 and a record low of 50 percent in 1996.


Belgium follows Austria in this highest tax implementing policies. The current income tax is 53.70 percent. Between 1995 and 2018 the income tax average is 55.81 percent. The recorded highest and lowest income tax is 60.60 and 53.70 percent in 1996 and 2003 respectively.


The Wonderland and most beautiful Netherlands ranks second to last on this list with the current income tax of 52 percent. The average income tax is 54 percent between 1995 and 2018. The recorded highest and lowest are 60 and 52 percent in 1996 and 2001 respectively.


Finland has an income tax of 51.60 percent at the time of the survey. The average is 52.96 between 1995 and 2016. The recorded highest and lowest are 62.20 and 49.00 percent in 1995 and 2010 respectively.

Top 10 Countries with the Lowest Income Tax

Top 10 Countries with the Lowest Income TaxEnough of the jaw-dropping tax rates; you must wonder what would leave after paying such a massive income tax in these countries. There are countries which are quite easy on the workforce. Hence here we list down the top ten countries with lowest income taxes around the world.

Serial # Country Income Tax Range
10 Bosnia and Herzegovina 10.00 10: 5
9 Bulgaria 10.00 50: 10
8 Kazakhstan 10.00 20: 10
7 Kosovo 10.00 10: 10
6 Libya 10.00 15: 10
5 Macedonia 10.00 24: 10
4 Mongolia 10.00 10: 10
3 Romania 10.00 48: 10
2 Montenegro 9.00 9: 9
1 Guatemala 7.00 31: 7

10 Countries with NO Income Tax

You do wonder if there exists any country with no income taxes or not. Well the answer is yes, here are some fantastic countries with ZERO income tax to encourage employment.

Here is the list of the ten countries with NO income tax.

Serial # Country
10 Bahamas
9 Bahrain
8 Bermuda
7 Brunei
6 Cayman Islands
5 Kuwait
4 Oman
3 Qatar
2 Saudi Arabia
1 United Arab Emirates

These are countries with some very huge employment opportunities in various fields. One can try their luck in these oil-rich, and industrially blooming countries with all the pennies earned ending up in your wallet.

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