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How much the average person in 40 different countries takes home after taxes
How much the average person in 40 different countries takes home after taxes
Matthew MichaelsMay 16, 2018, 19:10 IST
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Tax rates vary in each country, from over 50% to 0% for the average wage earner in the country.
Spain, France, and Germany all have the same 30% tax rate for the average citizen, but Germany has the highest average salary.
Switzerland and Denmark have the highest pre-tax salaries, but Switzerland's tax rate is much lower.
The salary you negotiate isn't the amount you end up receiving in your paychecks. The primary reason: taxes.
It is well known that every country has a different corporate tax rate, but each one also has different tax rates for individuals. CapRelo published a study on tax rates and take home salaries in 40 countries, including the United States, Germany, and China.
Often, salary comparisons in different countries don't include tax rates. But the higher a country's tax rate, the bigger the difference between annual pay and take-home pay once taxes are taken out.
A couple of countries in the report have practical tax rates over 50%, while two nations are essentially tax-free for the median earner. This means that two people with similar salaries in different countries can have vastly different paychecks.
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Below, the individual tax rate in 40 countries, ranked from highest tax rates to the lowest. The tax rate is what someone making the nation's average wage would pay. The average citizen's pay before and after taxes is also included for each country.