Lowest Effective Income Tax Rate at 100% of Average Wage
Costa Rica leads at 0.0%, while Denmark sits last at 35.3%, with all 37 OECD countries on the same processed data basis.
Payslip layers - top of Lowest Effective Income Tax Rate at 100% of Average Wage
2025 OECD Taxing Wages at 100% of average wage · income tax · employee SSC · employer SSC
Top 15 - Lowest Effective Income Tax Rate at 100% of Average Wage
OECD Taxing Wages (2025 data) · OECD PPP
The bar to make this list
Every OECD country's lowest effective income tax rate at 100% of average wage on one scale. A country needs 12.1% to reach the top 10; the median sits at 16.7%.
| Rank | Country | Effective Income Tax Rate |
|---|---|---|
| 1 | 🇨🇷 Costa Rica | 0.0% |
| 2 | 🇨🇱 Chile | 0.1% |
| 3 | 🇵🇱 Poland | 6.6% |
| 4 | 🇰🇷 South Korea | 7.1% |
| 5 | 🇯🇵 Japan | 7.9% |
| 6 | 🇨🇿 Czechia | 9.7% |
| 7 | 🇸🇰 Slovakia | 10.9% |
| 8 | 🇨🇭 Switzerland | 11.7% |
| 9 | 🇲🇽 Mexico | 11.8% |
| 10 | 🇸🇮 Slovenia | 12.1% |
| 11 | 🇮🇱 Israel | 12.7% |
| 12 | 🇬🇷 Greece | 12.7% |
| 13 | 🇵🇹 Portugal | 13.9% |
| 14 | 🇹🇷 Turkey | 14.3% |
| 15 | 🇦🇹 Austria | 14.6% |
| 16 | 🇭🇺 Hungary | 15.0% |
| 17 | 🇱🇻 Latvia | 15.5% |
| 18 | 🇸🇪 Sweden | 15.6% |
| 19 | 🇺🇸 United States | 16.7% |
| 20 | 🇫🇷 France | 16.7% |
| 21 | 🇪🇸 Spain | 17.1% |
| 22 | 🇩🇪 Germany | 17.2% |
| 23 | 🇬🇧 United Kingdom | 17.6% |
| 24 | 🇳🇱 Netherlands | 17.8% |
| 25 | 🇨🇦 Canada | 18.8% |
| 26 | 🇮🇹 Italy | 19.1% |
| 27 | 🇱🇹 Lithuania | 19.2% |
| 28 | 🇱🇺 Luxembourg | 19.7% |
| 29 | 🇳🇴 Norway | 20.4% |
| 30 | 🇳🇿 New Zealand | 20.8% |
| 31 | 🇮🇪 Ireland | 21.0% |
| 32 | 🇫🇮 Finland | 21.2% |
| 33 | 🇪🇪 Estonia | 21.6% |
| 34 | 🇦🇺 Australia | 23.5% |
| 35 | 🇧🇪 Belgium | 25.6% |
| 36 | 🇮🇸 Iceland | 27.1% |
| 37 | 🇩🇰 Denmark | 35.3% |
Use this ranking
Choose the next comparison, not a winner
Use this to compare the income-tax share in the fixed $100,000 single-worker model. It is not a headline marginal rate or a personal tax estimate, so test a country profile and the calculator before treating it as an offer outcome.
The effective rate divides the income-tax charge by gross pay in the OECD's single-worker model, so it already nets out personal allowances and credits that a headline marginal rate ignores. Still, the model assumes no dependants, no non-wage income, and no itemised deductions, any of those can move the real rate by several points in either direction.
Read our methodology - how this data is sourced, computed, and verified.
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Frequently asked questions
How does PlainGlobalPay rank OECD countries by lowest effective income tax rate at 100% of average wage?
All 38 OECD countries are ranked by lowest effective income tax rate at 100% of average wage, using the OECD single-worker benchmark at 100% of each country's average wage. A lower value ranks better.
What sources are behind the lowest effective income tax rate at 100% of average wage ranking?
The ranking draws on OECD Taxing Wages (2025 data). See the methodology page for the full source chain.
How current is the lowest effective income tax rate at 100% of average wage data?
Figures use the latest processed OECD Taxing Wages release for the lowest effective income tax rate at 100% of average wage at 100% of average wage. The OECD typically publishes annual Taxing Wages data in mid-year; the methodology page documents the exact publication cadence and any processing lag.