Portuguese workers receive 75% of their gross income as take-home pay.
In the latest "Taxing Wages" report by the OECD for 2025, Nordic and some Western European countries have emerged as the ones with the highest average personal tax rates, which encompass personal income taxes and employee social security contributions.
Notable countries with high tax rates include Denmark, France, and Austria, with Denmark carrying a whopping 55.9% top personal income tax rate, followed closely by France and Austria at around 55.4% and 55%, respectively.
Other countries with significant social security contributions, such as Italy, Belgium, and Greece, also show high total labor tax burdens. The report also pinpoints several countries that have seen increased personal average tax rates, affecting workers' real post-tax incomes in 2024. These countries include Italy, Estonia, Czechia, France, Greece, Belgium, and Spain.
In terms of overall average tax and social security contributions on gross income, Denmark, France, and Austria are typically at the top due to their high top marginal personal income tax rates combined with social security contributions. While specific global ranking data for the highest average total tax wedge (incorporating income tax and social security) from the 2025 OECD report might not be fully detailed, historically and takinginto account these figures, Nordic countries like Denmark consistently rank among the highest tax burdens on labor income in the OECD, often surpassing 50% combined rates.
Portugal is not typically among the countries with the highest average personal tax rates and social security contributions, as reported in the "Taxing Wages" report by the OECD for 2025. However, keeping track of finance and business news could provide insights if there are any changes in Portugal's tax policies affecting its position in future reports.
