20 Countries With The Highest Taxes in 2025
People either tend to look at countries with the highest taxes positively or negatively. It depends on what angle you look at it from. Taxes shape take-home individual income, corporate earnings, and government revenues.
Many high-tax countries use their systems to fund broad public services, healthcare, education, and social protection, which ultimately can influence overall quality of life.
This guide reviews20 countries with the highest tax rates, outlining why these countries charge such high taxes and what they all have in common.
- How do we define “highest taxes”?
- Top 10 High-Tax Countries (Personal Income Tax)
- Top 10 High-Tax Countries (Corporate Taxes)
- What are the types of tax systems?
- Do higher taxes correlate with better quality of life?
- Frequently Asked Questions
How do we define “highest taxes”?
To look atcountries with the highest taxes we used two headline measures that are broadly comparable across countries, namely thetop marginal personal income tax rate and thecorporate income tax rate. These signals indicate how heavily additional personal income or company profits are taxed at the top end of each system.
The top marginal rate is not the same as what most people actually pay. Real-world burdens differ bysocial security contributions, local or solidaritysurcharges,tax deductions andtax credits,residency rules, and howprogressive the tax brackets are. Two countries can share the same top rate yet yield very different effective outcomes once the aforementioned factors are applied.
The figures are taken from authoritative, regularly updated sources, such as theOECD (Taxing Wages; Corporate Tax Statistics), theTax Foundation,PwC Worldwide Tax Summaries,KPMG Tax Rates Online, and national tax authority publications, using the latest available year.
Top 10 Countries with the Highest Taxes (Personal Income Tax)
Top marginal personal income tax rate or statutory top refers to what is taxed on thehighestincome bracket. The actual effective taxes vary according to deductions, social security contributions, and local levies.
| Rank | Country | Top marginal personal income tax (PIT) | Notes (local/SSC, year) |
|---|---|---|---|
| 1 | Côte d’Ivoire (Ivory Coast) | 60%* | Figure varies by source/method. 2025. |
| 2 | Japan | ~55.95% | 45% nat’l + 10% local + surtax. 2025. |
| 3 | Denmark | 55.9% | Includes AM tax. 2025 statutory top. |
| 4 | France | 55.4% | Statutory top (incl. surcharges). 2025. |
| 5 | Austria | 55% | Statutory top. 2025. |
| 6 | Spain (regional max) | up to ~54% | Regional combined rate (for example, Valencia). 2025. |
| 7 | Portugal | up to ~53% | 48% and solidarity levy (2.5 to 5%). 2025. |
| 8 | Sweden | ~52.2% | Statutory top. 2025. |
| 9 | Aruba | 52% | Top bracket after 2024/25 changes. |
| 10 | Belgium | 50% | Federal top rate (excluding municipal add-ons). 2025. |
Côte d’Ivoire (Ivory Coast)
- Frequently listed at60%top PITbut some technical sources showlower headline rates. Differences stem from which tax structure/levies are counted.
- Residents taxed on worldwide income.
Japan
- Combined top about55.95% (45% national and10% local inhabitant tax, plus a small reconstruction surtax on the national portion).
- Progressive taxation system with local tax being assessed on prior-year income.
Denmark
- 55.9% top includes theAM tax (Arbeidsmarkedsbidrag) (treated as income tax for the purpose oftax treaties).
- Broad public services with effective burdens varying with deductions and municipality.
France
- 55.4% top includes national plus specific surcharges at high incomes.
- Progressive brackets. Social contributions apply separately on many income types.
Austria
- 55% top rate on the highest bracket (scheduled reforms can shift thresholds).
- Progressive system with tax credits/deductions reducing effective rates.
Spain (regional maximums)
- Combinedstate and regional top can reach~54% (such as Valencian Community).
- Regions set their own scales. Madrid and other regions tend to be lower.
Portugal
- National48% top plussolidarity levy (2.5–5%),~53% at very high incomes.
- Progressive brackets. Solidarity applies above stated thresholds.
Sweden
- ~52.2% statutory top (municipal and national). Effective tax burden depends on allowances.
- Separate capital income rules and social contributions apply.
Aruba
- 52% top bracket after recent band updates intended to reduce burdens for most taxpayers.
- Government confirmed changes to come in 2025.
Belgium
- 50% federal top. Many municipalities levy additional surcharges that are not included in the federal rate.
- Reforms and allowances affect take-home outcomes.
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Top 10 Countries with the Highest Taxes (Corporate Tax)
| Rank | Country / Territory | Statutory top corporate income tax rate | Notes (structure, caveats) |
|---|---|---|---|
| 1 | Comoros | 50% | Standard CIT is 35%. A50% rate applies when annual turnover exceeds KMF 500 million. |
| 2 | Puerto Rico | 37.5% | 18.5% “normal” tax + progressivesurtax up to 19% above US$275k taxable income (max ≈ 37.5%). |
| 3 | Suriname | 36% | Flat national CIT rate. |
| 4 | Argentina | Up to 35% | Progressive brackets:25% to 30% to 35% at the top band. |
| 5 | Malta | 35% | Flat rate; Malta’s refund system can reduceeffective tax atshareholder level, but the statutory corporate rate remains 35% |
| 6 | Colombia | 35% | Flat national CIT rate. |
| 7 | Chad | 35% | Headline CIT rate per PwC summaries. |
| 8 | Cuba | 35% | Top rate35% (higher rates can apply in somenatural-resource cases). |
| 9 | Sint Maarten (Dutch part) | 34.5% | Flat profit tax rate (legislative proposals aside). |
| 10 | Brazil | 34% | Combined national rate:IRPJ 25% and CSLL 9%. Financial sector can face higher CSLL. |
Comoros
- Headline rate: 50% (highest globally).
- Scope: Applies to corporate profits; smaller businesses may face different tax structures.
- Context: Frequently cited by global tax datasets as the top corporate rate.
Puerto Rico
- Headline rate: Up to 37.5% (18.5% base + graduated surtax).
- Scope: Applies to corporate net income; incentives can materially reduce the effective rate.
- Context: Often ranked among the highest statutory corporate rates in the Americas.
Suriname
- Headline rate: 36% (flat CIT).
- Scope: Applies to resident companies’ worldwide income and non-residents on local-source income via PE.
- Context: Consistently listed among the world’s highest headline corporate tax rates.
Argentina
- Headline rate: Up to 35% (progressive brackets).
- Scope: Applies to resident companies’ worldwide income; non-residents taxed on local-source profits.
- Context: Among Latin America’s highest statutory corporate rates.
Colombia
- Headline rate:35%+ 5% surcharge for specified financial institutions through 2027.
- Scope: Applies to corporate income; an additional surcharge applies to specified financial institutions.
- Context: Remains at the upper end regionally even before sector surcharges.
Malta
- Headline rate:35%.
- Scope: Applies to corporate profits; full imputation and shareholder refunds can lower the effective burden.
- Context: Europe’s highest statutory corporate rate, though effective outcomes can be much lower for some structures.
Chad
- Headline rate:35% general CIT.
- Scope: Applies to corporate profits; sector-specific regimes may differ.
- Context: One of the higher headline corporate tax rates in Africa.
Sudan
- Headline rate:35%.
- Scope: Applies to corporate profits; rates can vary by sector and tax structure.
- Context: Frequently shown at 35% in global corporate tax comparisons.
Cuba
- Headline rate:35% general profits tax (variations for certain regimes/sectors).
- Scope: Standard profits tax; special regimes may apply in designated sectors or zones.
- Context: Among the highest headline corporate rates in the Caribbean/Latin America region.
Sint Maarten (Dutch part)
- Headline rate:34.5% profit tax.
- Scope: Applies to corporate profits; exemptions/incentives can apply under conditions.
- Context: One of the highest statutory corporate rates in the Caribbean.
What are the types of tax systems?
The approach to taxable income varies globally, with most countries following one of four fundamental tax systems:
- Residential taxation
- Territorial taxation
- Citizenship-based taxation
- Zero taxation
Residential taxation
Residential taxation determines an individual’s tax liability based on their physical presence or residence status in a country. If an individual spends a certain duration in a country, often around 183 days, they become subject to that country’s tax regulations on their worldwide income. This system ensures that individuals contribute financially to the country’s services, infrastructure, and public programs.
Territorial taxation
Territorial taxation is a system that taxes only income and activities within a country’s borders. It typically does not tax foreign-source income, aiming to encourage international economic activities and attract foreign investment. This prevents double taxation on overseas income, but rules and regulations vary by country.
Citizenship-based taxation
Citizenship-based taxation is a system in which a country taxes its citizens on their worldwide income, regardless of where they live or earn income. The US is an example of a country that uses this system, requiring its citizens to report and pay taxes on their worldwide income regardless of where they live.
This system ensures citizens contribute financially to the country’s revenue and prevent tax evasion through offshore accounts. Nevertheless, many Americans overseas find ways to avoid paying taxes legally through several employee and self-employment income tax credit programs.
Zero taxation
Zero taxation, a strategy often seen in countries referred to as tax havens or tax-free countries, involves a tax foundation where minimal to no taxes are imposed on specific types of income, transactions, or entities. Under this system, individuals and businesses can benefit from a minimal or non-existent tax burden on their earnings, investments, and financial activities.
Tax haven countries attract businesses and individuals seeking to optimize their financial affairs and reduce taxable income. Typically, these zero-tax countries present advantageous aspects like safeguarding financial privacy, minimal regulatory prerequisites, and a conducive business atmosphere.
Do higher taxes correlate with better quality of life?
Are there countries with both high taxes and high quality of life? Often, yes. Many Nordic and Western European economies pairhigher overall tax burdens withuniversal healthcare,strong public education,robust social protection, and well-fundedinfrastructure, all factors that contribute to consistently strong quality-of-life outcomes.
That said,correlation does not equal causation. A high tax rate alone doesn’t guarantee better public services. Outcomes are dependent ontax design (what’s taxed and how broadly it reaches),where revenue is allocated, and theefficiency with which it’s delivered. In practice, demographics, labor-market structure, and local cost levels can make two countries with the same top tax rate deliver very different results.
What to keep in mind
- Service bundle vs. tax level: Quality of life tends to track what taxpayers receive (healthcare, childcare, transport, safety), not just how much they pay.
- Progressive design and social contributions: The mix ofprogressive income taxes,social security contributions, andmeans-tested benefits determines real household impact.
- Effective vs. statutory burden: Headline (“top marginal”) rates differ fromeffective rates after deductions, credits, and caps on contributions.
- Regional variation: Within the same country, local taxes and service quality can vary, altering the lived experience for residents and businesses.
When looking at Global Citizen Solutions’Global Passport Index, in particular the Quality of Life dimension,Nordic and Western European countries (such as Sweden, Finland, Denmark, the Netherlands, and Norway) consistently place near the top of the ranking due to outcomes linked to well-funded public services, personal safety, environmental quality, and institutional effectiveness. These same countries also have high taxation rates. This illustrates howtax design plus delivery can translate into day-to-day advantages that many residents value.
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It depends on the metric. If you’re looking at top marginal personal income tax, the ranking is often led byDenmark (55.9%),France (55.4%),Austria (55%);Japan is frequently cited near the top once its local inhabitant tax is included.
When it comes to thehighest corporate tax,Comoros (50%),Puerto Rico (up to 37.5%),Suriname (36%) are the leaders.
Hungary (27%)alongside Finland (25.5%)have thehighest VAT, followed closely by Croatia, Denmark and Sweden (25%).
When people ask“which countries have the highest income tax rates?” they usually mean thetop marginal personal income tax.
Examples includeDenmark, France, Austria, Sweden, Belgium, andJapan once local taxes are counted.
Lists based ontop marginal personal income tax typically include a European core,Denmark, France, Austria, Sweden, Belgium, Portugal, Spain (regional maximums) plusJapan andAruba/Finland depending on methodology.
Countries with the lowest taxes includeUAE, Monaco, Bahamas, Bermuda, Cayman Islands, Qatar, Bahrain. Rules differ depending on residency and indirect taxes.
TheU.S. federal top personal rate is lower than the very top European brackets (for example,Denmark 55.9% andFrance 55.4%). The gap narrows once you includestate/local taxes and payroll contributions in the U.S.
Manyhigh-tax countries taxresidents on worldwide income andnon-residents on domestic-source income, often with substantialwithholding on dividends/interest.
Recent global comparisons putComoros (50%) at the top, followed byPuerto Rico (up to 37.5%) andSuriname (36%). Effective rates can differ due to incentives or theOECD 15% minimum for large MNEs.
Europe dominates in the highest VAT category.Hungary (27%) leads, withFinland (25.5%) andCroatia/Denmark/Sweden (25%) following.
High-tax countries (for example,Denmark, France andAustria) rely onprogressive rates and highersocial contributions to fund broad public services.
Tax-friendly countries (for example,UAE, Monaco andBahamas) emphasize low to zero personal tax rates or territorial rules. Indirect taxes and residency criteria still apply.