25 Countries Where the Rich Are Taxed the Most

Papua New Guinea has five income tax brackets starting at 0% on taxable income below 12,500 kina ($3,541). Taxable annual income of more than 250,000 kina ($70,822) is subject to the highest rate. Non-residents are taxed on any income they derive from within the country.

India has two categories of income tax rates with different brackets. The traditional rates have four brackets, with the highest rate applicable to taxable income above 1 million rupees ($13,466). In April 2020, India implemented an alternative tax regime devoid of deductions and exemptions consisting of seven brackets with the highest rate applicable to taxable income above 1.5 million rupees ($20,198). Additional surcharges are applied progressively on annual taxable income starting at 5 million rupees ($67,322).

Italy has five national income tax brackets starting at 0% on yearly income below 15,000 euros ($17,033). The highest rate is applicable to annual income above 75,000 euros ($85,164). In addition to the top rate of 43%, there is a regional income tax that ranges from 1.23% to 3.33% and a municipal income tax from 0% to 0.8%.

Greece has five tax brackets, including 9% on all taxable income for the first 10,000 euros ($11,356), with income above 40,000 euros ($45,425) subject to the highest rate. There is a separate annual tax of between 15% and 45% on income from real estate property, as well as an income-based solidarity contribution of between 0% and 10%.

Australia has five income tax brackets with the highest rate on taxable income starting at over 180,000 Australian dollars (over US$130,821). Non-residents are subject to the highest three tax brackets on any table income, a minimum of 32.5% of taxable income, but they are exempt from the Medicare levy that most Australian residents must pay.

China has seven brackets of taxable income ranging from 0% (with a standard basic deduction) on the income at or below 36,000 renminbi ($5,636) to 45% for annual taxable income of 960,000 renminbi ($150,317). There are separate five-bracket tax rates for income from privately-owned businesses, sole proprietorships, and partnerships subject to progressive rates between 5% annual taxable income of 30,000 renminbi ($4,697) or less to 35% for income above 500,000 renminbi ($78,289).

France’s income taxes range from 0% to 45% with the highest rate applying to taxable income above 157,806 euros, or $179,002. There are additional social surtaxes on higher incomes that are determined by marital status and types of income, such as stock dividends.

Germany has four tax brackets with the highest rates applying to taxable annual incomes above 274,612 euros ($311,429) for singles and 549,224 euros ($622,858) for married couples. Germany also applies an income tax surcharge for improving regional economies and infrastructure, though that tax has been substantially reduced in 2021.

South Africa has seven tax brackets, with 0% paid on the income at or below 216,200 rand ($13,783). Annual income above 1,656,600 rand ($1,878,460) is subject to the highest rate. There are no local income taxes, and South Africans receive credits for foreign taxes paid.

The United Kingdom has four tax brackets, with the highest tax levied on taxable income above 150,000 pounds ($202,070). Income from annual dividends below 2,000 pounds ($2,695) is not taxed, but income above that threshold is considered “top slice” income and is taxed at the individual filers’ highest marginal tax rate.

South Korea has eight national income tax brackets with the highest marginal rate applying to annual taxable income above 1 billion won ($844,409). The top tax rate increased as of Jan. 1, 2021. It was 42% in the three years prior. South Korea also applies a nationwide progressive local marginal income tax of between 0.6% and 4.5%.

Luxembourg divides income tax filers into classes based on family status: one for single people, a second for married couples or civil partners, and a third for single people with children and people aged at least 65 by the start of the tax year. The top tax bracket includes a 7%-9% solidarity tax.

Iceland has three income tax brackets, each covering both a state and a municipal tax. The highest tax rate applies to income above 11,758,159 kró[h]na ($89,579) and is divided between the state (31.8%) and the municipality (14.45%).

Spain charges no income tax on income below 12,450 euros ($14,121), and its highest rate is levied on income above 300,000 euros ($340,272). Income taxes vary depending on the Spanish Autonomous Community (the Spanish equivalent of states) where the tax filer resides.

Ireland has only two primary income tax brackets — 20% and 40%. The top rate applies to taxable income above 35,300 euros ($39,947) for a single person. There is an additional income tax called the Universal Social Charge. The top rate of USC (8%) applies to gross income above 70,044 euros ($79,265).

Portugal has seven marginal tax brackets, with annual income above 80,882 euros ($91,671) subject to the highest rate. There’s an additional so-called “solidarity charge” of 2.5% on taxable income between 80,000 euros ($90,664) and 250,000 euros ($283,326) and 5% on income above 250,000 euros.

The Netherlands has three income tax brackets, with the highest applied to income over 68,507 euros ($77,583). Income is assessed not just on employment but also home ownership, including principal residence, and savings.

Belgium has four income tax brackets, with the top rate activating for income above 41,360 euros ($46,837). Belgium offers a special deduction for dividends received from ownership of stock in French companies.

Israel has seven tax brackets, with the highest marginal rate activating for annual income over 647,641 new Israeli shekels, or $209,447. Annual incomes below 75,480 shekels ($24,530) are not subject to an income tax, but there is a minimum rate of 31% on certain classes of passive income for adults under the age of 60.

Slovenia has five marginal tax brackets, the highest applying for annual income of over 72,000 euros, or $81,500. Capital gains, interest, dividends, and rental income are subject to a flat 27.5% rate.

Aruba has four marginal tax brackets, with the top rate applying for incomes above 147,454 Aruban florin ($81,908). While the top rate has not changed, the island country off the coast of Venezuela lowered income taxes for the first two brackets — anyone earning less than 65,904 Aruban florin ($17,943).

Sweden’s tax rates vary by municipality. The average rate is 32.27%. Incomes of 523,200 Swedish kronor ($58,680) and above trigger an additional state tax of 20%. There is a mandatory funeral fee that is levied as well.

Austria has seven marginal tax brackets, with the top rate levied at annual incomes above 1 million euros ($1,132,321). There is no income tax on yearly earnings below 11,000 euros ($12,444).

Japan had seven tax brackets in 2021, with the highest activating at an annual income over 40,000,000 yen ($350,494). Taxes are also levied by municipalities and prefectures, and Japan also has a special surtax through 2037 to fund reconstruction of areas affected by the 2013 earthquake and the Fukushima nuclear disaster.

Denmark has the second highest top marginal income tax brackets in the world, and the second highest of Scandinavian countries. Income above 544,800 Danish krone ($82,950) is taxable at the highest rate.

Finland has the highest marginal tax bracket in the world. The top rate kicks in with an annual income of over 80,500 euros ($91,154). The rate varies depending on the municipality of residence. The top marginal individual income tax rate for 2021 includes state tax of 31.25%, municipal tax of 23.5%, church tax of 2.2%, but excludes a few smaller taxes.