Lowest Effective Income Tax Rate at 100% of Average Wage
Colombia leads at 0.0%, while Denmark sits last at 35.3%, with all 38 OECD countries on the same processed data basis.
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 11.8% to reach the top 10; the median sits at 16.7%.
| Rank | Country | Effective Income Tax Rate |
|---|---|---|
| 1 | 🇨🇴 Colombia | 0.0% |
| 2 | 🇨🇷 Costa Rica | 0.0% |
| 3 | 🇨🇱 Chile | 0.1% |
| 4 | 🇵🇱 Poland | 6.6% |
| 5 | 🇰🇷 South Korea | 7.1% |
| 6 | 🇯🇵 Japan | 7.9% |
| 7 | 🇨🇿 Czechia | 9.7% |
| 8 | 🇸🇰 Slovakia | 10.9% |
| 9 | 🇨🇭 Switzerland | 11.7% |
| 10 | 🇲🇽 Mexico | 11.8% |
| 11 | 🇸🇮 Slovenia | 12.1% |
| 12 | 🇮🇱 Israel | 12.7% |
| 13 | 🇬🇷 Greece | 12.7% |
| 14 | 🇵🇹 Portugal | 13.9% |
| 15 | 🇹🇷 Turkey | 14.3% |
| 16 | 🇦🇹 Austria | 14.6% |
| 17 | 🇭🇺 Hungary | 15.0% |
| 18 | 🇱🇻 Latvia | 15.5% |
| 19 | 🇸🇪 Sweden | 15.6% |
| 20 | 🇺🇸 United States | 16.7% |
| 21 | 🇫🇷 France | 16.7% |
| 22 | 🇪🇸 Spain | 17.1% |
| 23 | 🇩🇪 Germany | 17.2% |
| 24 | 🇬🇧 United Kingdom | 17.6% |
| 25 | 🇳🇱 Netherlands | 17.8% |
| 26 | 🇨🇦 Canada | 18.8% |
| 27 | 🇮🇹 Italy | 19.1% |
| 28 | 🇱🇹 Lithuania | 19.2% |
| 29 | 🇱🇺 Luxembourg | 19.7% |
| 30 | 🇳🇴 Norway | 20.4% |
| 31 | 🇳🇿 New Zealand | 20.8% |
| 32 | 🇮🇪 Ireland | 21.0% |
| 33 | 🇫🇮 Finland | 21.2% |
| 34 | 🇪🇪 Estonia | 21.6% |
| 35 | 🇦🇺 Australia | 23.5% |
| 36 | 🇧🇪 Belgium | 25.6% |
| 37 | 🇮🇸 Iceland | 27.1% |
| 38 | 🇩🇰 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.
This table is a comparison tool, not a recommendation or a personal tax calculation. Every route begins with a standardised OECD scenario so that the rows can be compared on a common basis, but an individual outcome can change with residence, household structure, benefits, deductions, contract terms, exchange rates, and living costs. A high or low position on one measure does not establish that a country is the best option overall. Keep the source year and model assumptions in view, then test the same salary and household inputs in the calculator before using the result for an offer, hiring, or relocation decision.
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 reflect the processed source release shown on this page. The table re-renders whenever the underlying dataset is refreshed; check the methodology for each source's cadence and limits.