Taxing Wages – OECD 2015

Just released today. So, lets see how Ireland groans under a uniquely high burden of wage taxation shall we. Lets look, for illustrative purposes, at a single income average wage earner.

taxing wages 2015.png

 

Country Income Tax Employee Social Security Employer Social Security Total
New Zealand 17.6 17.6
Chile 7.0 7.0
Denmark 35.8 0.8 36.7
Israel 8.9 7.5 5.1 21.6
Australia 22.7 5.6 28.4
Switzerland 10.5 5.9 5.9 22.2
Iceland 26.7 0.3 7.0 34.0
United States 16.5 7.0 8.1 31.7
Netherlands 15.2 12.1 8.9 36.2
Korea 4.9 7.6 9.4 21.9
United Kingdom 12.8 8.4 9.7 30.8
Ireland 14.2 3.6 9.7 27.5
Mexico 8.0 1.2 10.5 19.7
Canada 14.1 6.8 10.8 31.6
Luxembourg 16.0 11.4 10.9 38.3
Norway 17.9 7.3 11.5 36.6
Japan 6.7 12.4 13.1 32.2
Slovenia 9.7 19.0 13.9 42.6
OECD (35.9%) 13.5 8.2 14.3 35.9
Poland 5.0 15.3 14.4 34.7
Turkey 10.6 12.8 14.9 38.3
Germany 16.1 17.2 16.2 49.4
Finland 18.4 6.7 18.7 43.9
Portugal 14.0 8.9 19.2 42.1
Greece 7.1 12.4 19.7 39.3
Hungary 12.5 14.4 22.2 49.0
Austria 13.1 14.0 22.4 49.5
Belgium 21.6 10.8 22.9 55.3
Spain 11.6 4.9 23.0 39.6
Slovak Republic 7.4 10.2 23.8 41.3
Sweden 13.5 5.3 23.9 42.7
Italy 17.5 7.2 24.3 49.0
Estonia 12.6 1.2 25.3 39.0
Czech Republic 9.2 8.2 25.4 42.8
France 10.7 10.3 27.5 48.5

If you want to play around with different levels of tax at different wage rates go here

2 thoughts on “Taxing Wages – OECD 2015

  1. Philip Boyd

    In order to get a true comparative picture of taxation a complete breakdown of the sources of taxation must be considered. This includes taxes on income, indirect taxes (including Irish Water), social taxes and taxes on profit and capital. Income taxes in Ireland are progressive i.e. Proportionately more is taken from the better off and (should) reflect the ability to pay. It is the other taxes where the problems lie. Property taxes based on house value are going to be higher in major cities than in rural areas irrespective of the costs of providing services to the dwelling. So it is the incidence of taxation that gives a true picture – a lot of which are regressive and take a disproportionate amount from poorer people’s income.

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