OECD Tax Wedge Changes, 2024 to 2025: United Kingdom Rises +2.4 points
A matched comparison of OECD Taxing Wages data for a single worker earning 100% of each country's average wage. 31 of 38 countries changed by at least 0.05 points; United Kingdom rose most (+2.4 points) while Australia fell most (-1.7 points).
Research period: OECD Taxing Wages 2024 and 2025 data, compared on 2026-07-23.
Research question
How did the OECD total tax wedge change from 2024 to 2025 for a single worker earning 100% of the average wage in each OECD country?
Method
We matched each country’s OECD Taxing Wages record for 2024 and 2025 where the household type is single and the income level is 100% of that country’s average wage. The measure is the total tax wedge: income tax plus employee and employer social-security contributions, expressed as a share of labour cost. The comparison uses 38 matched country observations and reports percentage-point changes, not percentage changes.
What changed in the retained OECD release data
PlainGlobalPay currently retains matched 2024 and 2025 OECD Taxing Wages observations for 38 countries in the single-worker, 100%-of-average-wage case. 31 changed by at least 0.05 percentage points. The average country change was +0.2 points.
Largest increases
United Kingdom +2.4 points (29.9% to 32.4%); Estonia +1.9 points (40.7% to 42.6%); Germany +1.3 points (47.9% to 49.3%); Israel +1.1 points (25.0% to 26.1%); Turkey +0.8 points (39.6% to 40.3%).
Largest decreases
Australia -1.7 points (29.6% to 27.9%); Latvia -1.4 points (41.6% to 40.1%); Italy -1.2 points (47.0% to 45.8%); Ireland -0.6 points (33.3% to 32.6%); Denmark -0.4 points (36.2% to 35.8%).
These are release-to-release comparisons of a consistent OECD modelled case, not a ranking of the best or worst countries. Use the current tax-wedge ranking for the latest cross-section, or the take-home calculator to explore a different salary and household assumption.
Largest OECD tax-wedge changes from 2024 to 2025
Percentage-point change in total tax wedge, single worker at 100% of average wage
How to read this comparison
A change in the total tax wedge can reflect income-tax rules, employee social-security contributions, employer contributions, or a mix of all three. It should not be read as a direct change in a worker’s take-home pay because employer contributions are included. For that decision, inspect the current country profile and model a salary with the calculator.
What this analysis cannot tell us
The OECD’s 100%-of-average-wage case is a standardised benchmark, not an individual pay slip. It does not model regional tax rules, non-standard deductions, household changes, or a fixed USD salary. A higher or lower tax wedge also does not by itself measure the value of public services, living costs, or a worker’s personal disposable income.
Sources
- OECD Taxing Wages, comparative tables (2024 and 2025 data): OECD Taxing Wages publication and data access
- PlainGlobalPay methodology and source chain