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How much the average person in 40 different countries takes home after taxes

May 16, 2018, 19:10 IST

Justin Sullivan/Getty Images

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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.

40. Denmark

Practical tax rate: 56%

Average pre-tax salary: $64,310

Average post-tax salary: $28,227

39. Sweden

Practical tax rate: 52%

Average pre-tax salary: $46,804

Average post-tax salary: $22,410

38. Belgium

Practical tax rate: 45%

Average pre-tax salary: $47,674

Average post-tax salary: $26,221

37. Austria

Practical tax rate: 42%

Average pre-tax salary: $45,819

Average post-tax salary: $26,575

36. The Netherlands

Practical tax rate: 41%

Average pre-tax salary: $51,669

Average post-tax salary: $30,562

33 (TIE). Spain

Practical tax rate: 30%

Average pre-tax salary: $30,613

Average post-tax salary: $21,429

33 (TIE). France

Practical tax rate: 30%

Average pre-tax salary: $40,718

Average post-tax salary: $28,503

33 (TIE). Germany

Practical tax rate: 30%

Average pre-tax salary: $42,369

Average post-tax salary: $29,658

32. Portugal

Practical tax rate: 29%

Average pre-tax salary: $18,333

Average post-tax salary: $13,108

31. Canada

Practical tax rate: 28%

Average pre-tax salary: $48,688

Average post-tax salary: $35,299

29 (TIE). Turkey

Practical tax rate: 27%

Average pre-tax salary: $11,230

Average post-tax salary: $8,198

29 (TIE). Italy

Practical tax rate: 27%

Average pre-tax salary: $32,205

Average post-tax salary: $23,510

27 (TIE). Croatia

Practical tax rate: 25%

Average pre-tax salary: $12,140

Average post-tax salary: $9,105

27 (TIE). Ireland

Practical tax rate: 25%

Average pre-tax salary: $56,787

Average post-tax salary: $42,322

24 (TIE). Slovenia

Practical tax rate: 23%

Average pre-tax salary: $25,171

Average post-tax salary: $19,432

24 (TIE). Finland

Practical tax rate: 23%

Average pre-tax salary: $45,584

Average post-tax salary: $34,963

24 (TIE). Latvia

Practical tax rate: 23%

Average pre-tax salary: $14,017

Average post-tax salary: $10,793

23. Greece

Practical tax rate: 22%

Average pre-tax salary: $19,189

Average post-tax salary: $14,967

22. Australia

Practical tax rate: 21%

Average pre-tax salary: $59,538

Average post-tax salary: $46,781

21. Estonia

Practical tax rate: 20%

Average pre-tax salary: $15,726

Average post-tax salary: $12,581

18 (TIE). Slovakia

Practical tax rate: 19%

Average pre-tax salary: $13,934

Average post-tax salary: $11,287

18 (TIE). Argentina

Practical tax rate: 19%

Average pre-tax salary: $11,970

Average post-tax salary: $9,638

18 (TIE). New Zealand

Practical tax rate: 19%

Average pre-tax salary: $44,636

Average post-tax salary: $36,283

17. United States

Practical tax rate: 18%

Average pre-tax salary: $64,154

Average post-tax salary: $52,344

14 (TIE). Czech Republic

Practical tax rate: 15%

Average pre-tax salary: $13,587

Average post-tax salary: $11,549

14 (TIE). Hungary

Practical tax rate: 15%

Average pre-tax salary: $12,157

Average post-tax salary: $10,333

14 (TIE). Lithuania

Practical tax rate: 15%

Average pre-tax salary: $12,538

Average post-tax salary: $10,657

11 (TIE). Russia

Practical tax rate: 13%

Average pre-tax salary: $9,720

Average post-tax salary: $8,456

11 (TIE). United Kingdom

Practical tax rate: 13%

Average pre-tax salary: $46,252

Average post-tax salary: $40,169

11 (TIE). Mexico

Practical tax rate: 13%

Average pre-tax salary: $9,812

Average post-tax salary: $8,537

9 (TIE). China

Practical tax rate: 12%

Average pre-tax salary: $8,250

Average post-tax salary: $7,247

9 (TIE). South Korea

Practical tax rate: 12%

Average pre-tax salary: $29,125

Average post-tax salary: $25,754

6 (TIE). Bulgaria

Practical tax rate: 10%

Average pre-tax salary: $7,580

Average post-tax salary: $6,822

6 (TIE). Romania

Practical tax rate: 10%

Average pre-tax salary: $9,480

Average post-tax salary: $8,532

6 (TIE). Japan

Practical tax rate: 10%

Average pre-tax salary: $39,089

Average post-tax salary: $35,279

5. Brazil

Practical tax rate: 8%

Average pre-tax salary: $8,840

Average post-tax salary: $8,177

4. Indonesia

Practical tax rate: 5%

Average pre-tax salary: $3,400

Average post-tax salary: $3,230

3. Switzerland

Practical tax rate: 2%

Average pre-tax salary: $85,718

Average post-tax salary: $84,006

1 (Tie). India

Practical tax rate: 0%

Average pre-tax salary: $1,670

Average post-tax salary: $1,670

1 (TIE).Saudi Arabia

Practical tax rate: 0%

Average pre-tax salary: $21,720

Average post-tax salary: $21,720

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