Income tax in European countries
Income taxes in European countries vary between countries.
Germany
German income tax comprises 5 income tax bands, with the first two being based on a totally Progressive tax rate and the rest being flat rate. Taxable income is derived after subtracting personal and child allowances from earned income. In addition a number of other deductions may be claimed by German taxpayers.
- Personal allowance: 8355 € per adult
- Child allowance: 7008 € per child
| Annual income above | Annual income below | Marginal tax rate 2014[1] |
|---|---|---|
| 0 € | 8354 € | 0% |
| 8355 € | 13469 € | 14% − 23.97% |
| 13470 € | 52881 € | 23.97% − 42% |
| 52882 € | 250730 € | 42% |
| 250731 € | - | 45% |
Netherlands
Income tax in the Netherlands (Loonheffing) and social security contributions are combined in one payroll tax. There are no personal tax-free allowances
| Annual income Above | Annual income below | Tax rate (including employee social security)[2] | Tax rate (excluding employee social security) |
|---|---|---|---|
| 0 € | 19882 € | 33% | 1.85% |
| 19822€ | 33589 € | 41% | 10.45% |
| 33589 € | 57585 € | 42% | 42% |
| 57585 € | - € | 52% | 52% |
France
Income tax in France depends on the number of persons in the household. The taxable income is divided by the number of persons belonging to the household. Each adult counts as one person while the first two children count as half each. From the third child onwards each child counts as one person. Therefore a household comprising 2 adults and 3 children is considered to be a household of 4 persons for tax purposes
| Annual income Above | Annual income below | Tax rate[3] |
|---|---|---|
| 0 € | 5963 € | 0% |
| 5963 € | 11896 € | 5.5.% |
| 11896 € | 26420 € | 14% |
| 26420€ | 70830 € | 30% |
| 70830 € | - | 41% |
Spain
Spanish income tax includes a personal tax free allowance and an allowance per child. In 2012 a special temporary surcharge was introduced as part of austerity measures to balance the budget. The personal allowance currently stands at €5151.
- 1st child €1,836
- 2nd child €2,040
- 3rd child €3,672
- 4th & subs €4,182
| Annual income above | Annual income below | Tax rate (excluding temporary surcharge) | Tax rate (including temporary surcharge)[4] |
|---|---|---|---|
| €0 | €5,150 | 0% | 0% |
| €5,150 | €17,707.20 | 24% | 24.75% |
| €17,707.20 | €33,007.20 | 28% | 30% |
| €33007.20 | €53407.20 | 37% | 40% |
| €53,407.20 | €120,000.20 | 43% | 47% |
| €120,000.20 | €175,000.20 | 44% | 49% |
| €175,000.20 | €300,000.20 | 45% | 51% |
| €300,000.20 | - | 45% | 52% |
Italy
- Personal Allowance: 800 € per adult
- Allowance per child:1120 €
| Annual income Above | Annual income below | Tax rate[5] |
|---|---|---|
| 0 € | 15000 € | 23% |
| 15000 € | 28000 € | 27% |
| 28000 € | 55000 € | 38% |
| 55000 € | 75000 € | 41% |
| 75000€ | - | 43% |
United Kingdom
Income tax for the United Kingdom is based on 2014/15 tax bands. There is a tax-free personal allowance, which has been increased by the coalition government for the 2014/2015 tax year. The current tax rate is £10,000.
| Annual income above | Annual income below | Tax rate[6] |
|---|---|---|
| £0 | £10,000 | 0% |
| £10,000 | £41,865 | 20% |
| £41,865 | £150,000 | 40% |
| £150,000 | - | 45% |
See also
- Tax rates of Europe
- Taxation in the United Kingdom#Personal taxes
- Taxation in Germany#Income tax for residents
- Taxation in France#List of taxes
- Income tax in the Netherlands#Progressive tax on wages etc. (box 1)
- Taxation in Italy
- Taxation in Denmark
Notes
- ↑ {de} http://www.gesetze-im-internet.de/estg/__32a.html
- ↑ {nl} http://www.xperthr.nl/artikel/995/tabel-1-schijventarief-loonbelasting-en-premies-volksverzekeringen-%282011%29.aspx
- ↑ http://www.impots.gouv.fr/portal/deploiement/p1/fichedescriptive_1006/fichedescriptive_1006.pdf
- ↑ {es} http://www.abc.es/20111231/economia/abci-tabla-recortes-201112310831.html
- ↑ Redazione internet Agenzia Entrate. "Agenzia delle Entrate - Income tax for individuals". .agenziaentrate.gov.it. Retrieved 2014-04-15.
- ↑ "HM Revenue & Customs: Income Tax allowances". Hmrc.gov.uk. Retrieved 2014-04-15.