Top 10 Highest Tax Paying Countries

Two things are definite in life one is death and other is tax. Wherever you go in this world you have to pay tax, everyone has its own view about tax. High tax rates in a country is a pathetic thing for people as for some individuals the high tax rates may be equivalent to death or the intense desire of many people is that the tax rate should be zero percent. In present time these tax rates are going to increase in the world day by day, although the tax rates vary in different countries. Here is the list of Top 10 Highest Tax Paying Countries and if your preference is to pay low taxes than you should avoid these countries completely.

Highest Tax Paying Countries

10. Ireland

One of the countries with highest income tax rates is Ireland, which has tax rate of 48% for people with income of at least $40,696. This country has much higher personal tax rate as compared to the average of 40% in Northern Europe. The other taxes include social security tax of 4%, capital gain tax and tax on gifts and inheritance from 25% to 30%.

 

9. Finland

Finland has a highest tax rate of 49.2%, and the people having income $91,000 are liable to pay the tax. In 2004 the highest tax rate in the country was 53.5% which was cut in last years by government in order to have more money in accounts of citizens so that they become capable to fight inflation that the country experiencing economically. The capital gain tax is 28%, municipal tax is 21% while the church also has to pay a tax of 1% to 2%.

 

8. United Kingdom

United Kingdom is one of the highest tax paying countries with tax rates of 45% for people having income of at least $234,484.The social security tax rates are 14% while the capital gains are 28%. It is a developed country and is the sixth largest economy of the world in terms of GDP.

 

7. Japan

Japan is an island nation that lies in East Asia, it is also referred sometimes as the Land of the rising sun. It is only Asian country in this list having highest income tax rate of 50% for at least an income of $228,880. This income tax rate is much higher than the total of average of Asia that is 23%. The tax scheme is divided in two parts 40% marginal rate and 10% property tax.

 

6. Austria

Austria is a federal republic and a landlocked country of almost 8.47 million people and is located in Central Europe. It is the 12th richest country in the world in terms of GDP and has a high standard of living. It is one of the best places to live but you have to pay the expense in the form of high income tax rate of 50% at an income of at least $74,442. This country has also high social security charges of 18%, 6% are charged on bonus payments and the capital gain tax is 25%. Even the money of citizens that is saved in Swiss banks is also taxed through an agreement between Austrian and Swiss government.

 

5. Belgium

Belgium is a federal monarchy in the Western Europe having income tax rates of 50% percent on an income of at least $46,900. This country has higher tax rate than the average for Western Europe and has highest social security burden in the world as there a single taxpayer carries less than 45% of their actual income to home while those in the highest income category take less than 40%. There are 35% percent social security charges , 11% municipal taxes and up to 33% capital gains tax.

 

4. Netherlands

The Netherlands is a constituent country, comprising of twelve provinces in North-Western Europe and three islands in the Caribbean. It is also known as Holland and is ranked at number four with highest income tax rates of 52%for at least $70,090 income. The tax rates were reached at peak with 72% in the past so the present Dutch are very lucky .Other taxes include; the capital gain tax is 25%, land transfer tax is 6% and inheritance tax is up to 40%. It is a country with developed economy and is playing an important role in the European economy for many centuries.

 

3. Denmark

Denmark is a sovereign state that is present in Northern Europe and is included in the list of top ten countries with highest tax rates. The highest tax rate of this country is 55.56% for people having income of at least $76,000. In 2008, the income tax rates were much higher with 62.3% that are recently reduced in 2013. The government also implements taxes on dividend income by 28% and capital gains by 42%, even the church has to pay tax ranging from 0.4% to 1.5%.Gifts exceeding threshold amount are also liable to 15% percent tax. In cross- national studies of happiness, it is frequently ranked as the happiest country of the world.

 

2. Sweden

Sweden is a Scandinavian country in Northern Europe which is according to the Reputation Institute is the second most reputable country on the earth in 2013, it is a welfare state where there is free education for citizens, sponsored healthcare, guaranteed pension and subsidized transport. An aggressive tax system by government is the consequence of all these benefits. Sweden is one of the largest European countries with highest income tax rate of 56.6%, it is in lead in this category among the other neighboring Scandinavian countries which were considered to be having highest income tax rate countries with tax rate of 48% in the past. The top tax rates of the Sweden affects the people having income of $81,000 or more while the average income of the people is approximately $48,800, there is also 30% tax on investment income.

 

1. Aruba

The country which is at the top of the list of top 10 highest tax paying countries is Aruba, it is a 33 kilometers long island in the southern Caribbean Sea. It is one of the four constituent countries that make the kingdom of the Netherlands and the citizens of all these countries have single nationality and they are known as Dutch nation.This is the country in Caribbean region having highest standards of living.

With highest income tax rates of 58.95% this is the only American country that is at the top of the list, these income tax rates are for those people having income of at least $171,149.Married people have to pay slightly lower rates of 55.85%, while the singles have to pay 58.95%. The capital gain tax in this country is 25%.In 2007, the income tax rates were much high that is 60% with slighter decline in current period. Here the unemployment rates are very low. Bermuda, Bahamas and the Cayman Islands which are the neighboring states of Aruba have almost zero income tax

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