Highest Taxed Countries 2021

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As the old adage goes, only two things in life are certain: death and taxes. Taxes can be a burden, but paying taxes is important for several reasons. Taxes are used to fund education, technology, infrastructure, the military, and health programs. Taxes provide the funds that a country needs to survive, so it’s a necessary evil.

If you look at tax rates around the world, you’ll see a wide variation of tax rates. Some nations also have different types of taxes and rules surrounding taxation. Rules and tax rates can even vary within the same country. For example, within the United States, some states have a sales tax while others do not. However, these states without a sales tax may face additional taxes or higher tax rates to make up for the deficit, such as higher property tax rates. Additionally, some U.S. states have significant income tax rates while seven do not collect any state income tax.

Finding the countries with the highest taxes can be a challenge because of the various rules, regulations, and taxes. For this article, we’ll look at three main types of taxes: income tax, corporate tax, and sales tax. We’ll look at these different types of taxes to determine which nations have the highest taxes.

First, let’s start with income taxes. The highest maximum income tax rate can be found in Portugal. In this country, the maximum rate is 59.00%. Following behind is Aruba. This nation has income taxes of 58.95%. Coming in third for the highest maximum income tax rate is Sweden at 57.00%.

Next, we’ll take a look at corporate tax rates around the globe. The highest corporate tax rate can be found in American Samoa, where the highest bracket is 44%, and the lowest is 15%. Following American Samoa is Seychelles, with the highest rate set at 40% and the lowest at 33%. Canada follows at 38% and 12%. About 40 additional countries have corporate tax rates at 30% or higher.

Finally, let’s look at sales tax rates. The highest rates are found in India, with rates up to 28%. Next is Hungary, which has a standard rate of 27%. In third place is Brazil, which has a maximum rate of 25%. Croatia, Denmark, Norway, and Sweden also have standard rates of 25%.

Countries where taxes are levied at a very low rate for foreign investors are called tax havens. Tax havens generate government revenue by attracting a generous amount of capital inflow and imposing fees, charges, and low tax rates. Tax havens also facilitate economic growth as high-tax countries lose corporate tax revenue from businesses moving overseas to the havens.

Highest Taxed Countries 2021

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Highest Taxed Countries 2021

Country Highest Income Tax Lowest Income Tax Corporate Tax Sales Tax
Portugal59.00%14.50%21%23% (standard rate);
Aruba58.95%7.00%25%1.5% (turnover tax)
Sweden57.00%32.00%21.4%25% (standard rate); 12% or 6% (reduced rate)
Japan55.95%15.11%29.74%10%
Denmark55.86%39.86%22%25%
Switzerland55.00%0.00%17.92%7.7% (standard rate); 3.8% or 2.5% (reduced rates)
Austria55.00%0.00%25%20% (standard rate); 10% (basic items)
Finland54.25%7.71%20%24% (standard rate); 10% (medicines and public transport)
Canada54.00%19.00%38% (highest rate); 12% (lowest rate)15%
South Korea53.40%7.80%24.2%10%
Luxembourg52.45%6.00%29.22%17%
Ireland52.00%20.00%12.5%23% (goods); 0% (certain items of food)
Netherlands51.95%36.55%25% (on profits over €250,001); 20% (not over €250,000)21% (standard rate); 9% (essential and selected goods)
San Marino50.00%12.00%17%0% (standard rate); 17% (imported goods)
Slovenia50.00%16.00%19%22% or 9.5%
Central African Republic50.00%n/a30%19%
Israel50.00%11.50%23%17% (standard rate); 0% (fruits, vegetables and public transport)
Cuba50.00%15.00%30%20% (highest rate); 2.5% (lowest rate)
Belgium50.00%25.00%29.58%21% (standard rate); 6% (essential and selected goods)
Senegal50.00%0.00%25%20%
Nepal50.00%1.00%30% (higher rate for financial companies); 25% (standard rate); 20% (reduced rate for manufacturing companies)13% (standard rate);
United States50.00%0.00%21% + 0–12% (state/local)11.725% (highest prevailing marginal state and local sales tax rate); 0% (lowest prevailing marginal rate)
Germany47.48%14.00%29.65%19% (standard rate); 7% (food)
Australia47.00%0.00%30% (standard rate); 28.5% (reduced rate)10% (standard rate); 0% (essential items)
Italy47.00%23.00%27.9% (24% + 3.9% (municipal))22% (standard rate); 4% (food and books)
United Kingdom47.00%0.00%19%20% (standard rate); 0% (life necessities: groceries, water, prescription medications, medical equipment and supplies; public transport; children's clothing; books and periodicals)
Russia47.00%13.00%20%20% (standard rate); 0% (house or flat)
Curacao46.50%9.75%22%6, 7 or 9%
Iceland46.00%0.00%20%24% (standard rate); 11% (reduced rate)
Czech Republic45.70%20.10%19%21% (standard rate); 15% or 10% (reduced rates)
Greece45.00%22.00%28% (+ 28% paid in advance & returned after 1 year + 10% on distribution of profit)24% (standard rate); For some islands away from the mainland the rates are 17%, 9% and 4%, respectively.
Zimbabwe45.00%0.00%25%15% (standard rate); 0% (on selected items)
Spain45.00%0.00%25% (in mainland); 4% (in Canary Islands)21% (standard rate);
South Africa45.00%0.00%28%15%
France45.00%0.00%31% (on profits over €500,000; 15% (not over €38,120)20% (standard rate); 2.1% (press)
China45.00%0.00%25%16% (standard rate); 0% (goods and services for export)
Lithuania42.77%31.20%15%21%
India42.70%0.00%25.17% (highest); 17.01% (lowest)28%, 18%, 12%, 5%, 0% (varies by commodity)
Singapore42.00%0.00%17%7%
Malaysia40.20%0.00%24% (highest rate); 18% (lowest rate)10% (standard rate for goods)
Gibraltar40.00%17.00%10%0%
New Caledonia40.00%0.00%30%N/A
Croatia40.00%12.00%18% (for profits over 3 million kn); 12% (for profits not over 3 million kn)25% (standard rate); 13% (certain groceries)
Taiwan40.00%5.00%20%5%
Dr Congo40.00%0.00%35%20% (highest rate); 5% (lowest rate)
Barbados38.00%25.00%5.5% (on profits not over Bds$1 million); 1.0% (over Bds$30 million)17.5% (standard rate); 7.5% (hotel services)
Namibia37.00%0.00%32%15%
Armenia36.00%24.40%20%20%
Moldova36.00%12.00%12%20% (standard rate); 10% (HoReCa)
Dominica35.00%0.00%25%15%
Malta35.00%0.00%10% (highest rate); (35% pre-rebate)18%
Cyprus35.00%0.00%12.5%19% (standard rate); 5% or 0% (reduced rates)
Gabon35.00%5.00%35%18%
Norway35.00%0.00%23%25% (standard rate);
Tunisia35.00%0.00%30%18% (standard rate); 12% or 6% (reduced rate)
Burundi35.00%0.00%35%18%
Benin35.00%10.00%35%18%
Ecuador35.00%0.00%25%12% (standard rate); 0% (exports)
Romania35.00%10.00%16% (or 1% revenue for micro-entities with at least one employee, or 3% for micro-enterprises with no employees)19% (standard rate);
Chile35.00%0.00%27%19%
Cameroon35.00%10.00%31.5%19.25%
Algeria35.00%0.00%26% (highest rate); 19% (lowest rate)19% (standard rate); 9% (basic items)
Argentina35.00%9.00%35%21%
Thailand35.00%0.00%20%7%
Iran35.00%0.00%25%9% (highest rate); 0% (reduced rate)
Turkey35.00%15.00%20%18% (standard rate); 1% (certain food items)
Vietnam35.00%5.00%20%10%
Philippines35.00%0.00%30%12% (standard rate); 0% (reduced rate)
Mexico35.00%1.92%30%16%
Venezuela34.00%6.00%34%16% (standard rate); 8% (reduced rate)
Puerto Rico33.34%0.00%20%11.5%
Guyana33.00%n/a30%16% (standard rate); 0% (reduced rate)
Eswatini33.00%33.00%27.5%14%
New Zealand33.00%10.50%28%15%
Colombia33.00%0.00%33%19% (standard rate); 5% or 0% (reduced rates)
Poland32.00%0.00%19% (9% for small taxpayer, those with revenue in a given tax year not exceeding the equivalent of €1.2 million and that have "small taxpayer" status)23% (standard rate); 8% or 5% (reduced rates)
Latvia31.40%20.00%0% (20% on distribution of profit)21%
Pakistan31.00%7.50%31%17% (standard rate);
Cook Islands30.00%18.50%30% (highest rate); 20% (lowest rate)15%
Gambia30.00%0.00%31%N/A
Uruguay30.00%0.00%25%22% (standard rate); 0% (extent)
El Salvador30.00%0.00%30%13%
Haiti30.00%0.00%30%10%
Zambia30.00%10.00%35%16%
Peru30.00%0.00%30%16% (standard rate) +
Kenya30.00%10.00%30%16% (standard rate); 0% (food)
Tanzania30.00%15.00%30%18%
Indonesia30.00%5.00%25%10%
Bulgaria28.00%10.00%10% (+ 5% on distribution of profit)20%
Cape Verde27.50%16.50%25%15%
Brazil27.50%0.00%34%25% (highest rate); 17% (lowest rate)
Panama27.00%0.00%25%7% (standard rate); 5% (essential goods)
Falkland Islands26.00%0.00%26%0%
Belize25.00%0.00%N/A12.5%
Bhutan25.00%0.00%26%N/A
Trinidad And Tobago25.00%0.00%25%12.5%
Botswana25.00%0.00%22%12%
Jamaica25.00%0.00%33.3% (standard rate); 25% (reduced rate for small companies)20% (services)
Costa Rica25.00%0.00%30%13%
Slovakia25.00%0.00%22%20% (standard rate)
Serbia25.00%10.00%15%20% (standard rate); 8% or 0% (reduced rates)
Azerbaijan25.00%14.00%20%18%
Dominican Republic25.00%0.00%27%18%
Bolivia25.00%0.00%29%13%
Burkina Faso25.00%0.00%27.5%18%
Bangladesh25.00%0.00%35%15%
Liechtenstein24.00%3.00%12.5%7.7% (standard rate); 2.5% (reduced rate)
Nigeria24.00%7.00%30%5%
Albania23.00%0.00%15%20% (standard rate); 6% (tourism services)
Egypt22.50%0.00%22.5% (on taxable corporate profits); (+ 5% on distribution of profit)14% (standard rate); 0% (exports)
Isle Of Man20.00%10.00%0%20% (standard rate); 5% (home renovations)
Fiji20.00%0.00%20%9%
Estonia20.00%20.00%0%; (20% on dividends)20% (standard rate); 9% (reduced rate)
Georgia20.00%20.00%0% (15% on distribution of profit)18%
Lebanon20.00%2.00%17%11%
Cambodia20.00%0.00%20%10%
North Korea20.00%0.00%25%4% (highest rate); 2% (lowest rate)
Morocco20.00%0.00%31% (highest rate); 10% (lowest rate)20% (standard rate); 14%, 10%, 7% (reduced rates)
Afghanistan20.00%0.00%20%0%
Ukraine18.00%18.00%18%20% (standard rate); 7% or 0% (reduced rates)
Belarus17.00%13.00%18%20% (standard rate); 10% (reduced rate)
Angola17.00%0.00%30%10%
Seychelles15.00%15.00%40% (highest rate); 33% (lowest rate)15%
Maldives15.00%0.00%15% (highest rate); 8% (lowest rate)6%
Mauritius15.00%15.00%15%15%
Palestine15.00%5.00%15%14.5%
Hong Kong15.00%0.00%16.5% (on profits over HK$2 million); 8.25% (on profits not over HK$2 million)0%
Hungary15.00%15.00%9%27% (standard rate); 5% (milk, egg, pork, chicken meat, internet service, restaurant services, medicines and books)
Syria15.00%5.00%22%N/A
Kazakhstan15.00%10.00%20%12%
Sri Lanka15.00%0.00%30% (highest rate); 15% (lowest rate)12% (standard rate); 8% or 0% (reduced rates)
Yemen15.00%10.00%20%2%
Jordan14.00%0.00%20%16%
Tajikistan13.00%5.00%13%; 25% (non-residents)18%
Montenegro12.65%9.00%9%11%
Marshall Islands12.00%0.00%N/A4% (highest rate); 2% (lowest rate)
Macau12.00%0.00%12%0%
Uzbekistan12.00%12.00%12% (standard rate); 20% (banks and mobile communication operators)20% (highest rate); 0% (lowest rate)
Andorra10.00%10.00%10%4.5% (standard rate); 9.5% (banking services); 2.5%, 1% or 0% (reduced rates)
Bosnia And Herzegovina10.00%10.00%10%17%
Mongolia10.00%10.00%10%10%
Paraguay10.00%8.00%10%10%
Bahamas8.80%0.00%0%12% (standard rate)
Guatemala7.00%5.00%25%12%
American Samoa6.00%4.00%44% (highest rate); 15% (lowest rate)0%
Saudi Arabia2.50%0.00%5%5%
Anguilla0.00%0.00%0%0%
British Virgin Islands0.00%0.00%0%N/A
Monaco0.00%0.00%33.33%19.6% (highest rate); 5.5% (lowest rate)
Saint Kitts And Nevis0.00%0.00%0%N/A
Cayman Islands0.00%0.00%0%0%$1
Brunei0.00%0.00%20%N/A
Bahrain0.00%0.00%0%5%
Qatar0.00%0.00%10%0%
Kuwait0.00%0.00%0%0%
Oman0.00%0.00%15%5%
United Arab Emirates0.00%0.00%0%5%
Tokelaun/an/aN/AN/A
Niuen/an/aN/A12.5%
Montserratn/an/aN/AN/A
Saint Pierre And Miquelonn/an/aN/AN/A
Naurun/an/aN/AN/A
Tuvalun/an/aN/AN/A
Palaun/an/aN/AN/A
Turks And Caicos Islandsn/an/aN/AN/A
Sint Maartenn/an/aN/AN/A
Bermudan/an/a0%N/A
United States Virgin Islandsn/an/a10%N/A
Tongan/an/aN/AN/A
Saint Vincent And The Grenadinesn/an/aN/AN/A
Grenadan/an/aN/AN/A
Micronesian/an/aN/AN/A
Kiribatin/an/aN/AN/A
Saint Lucian/an/aN/AN/A
Samoan/an/aN/AN/A
Sao Tome And Principen/an/aN/AN/A
Vanuatun/an/aN/AN/A
Surinamen/an/a36%N/A
Solomon Islandsn/an/aN/AN/A
Comorosn/an/aN/AN/A
Djiboutin/an/aN/AN/A
Timor Lesten/an/aN/AN/A
Equatorial Guinean/an/aN/AN/A
Guinea Bissaun/an/aN/AN/A
Lesothon/an/aN/AN/A
Eritrean/an/aN/AN/A
Mauritanian/an/aN/AN/A
Liberian/an/a25%N/A
Republic Of The Congon/an/a30%18.9%
Turkmenistann/an/aN/AN/A
Kyrgyzstann/an/aN/AN/A
Nicaraguan/an/aN/AN/A
Libyan/an/aN/AN/A
Laosn/an/aN/AN/A
Sierra Leonen/an/aN/AN/A
Togon/an/aN/AN/A
Papua New Guinean/an/aN/AN/A
Hondurasn/an/aN/AN/A
South Sudann/an/aN/AN/A
Rwandan/an/aN/AN/A
Guinean/an/aN/AN/A
Somalian/an/aN/AN/A
Chadn/an/aN/AN/A
Malawin/an/aN/AN/A
Malin/an/aN/AN/A
Nigern/an/aN/AN/A
Ivory Coastn/an/aN/AN/A
Madagascarn/an/aN/AN/A
Ghanan/an/aN/A3%
Mozambiquen/an/aN/AN/A
Iraqn/an/aN/AN/A
Sudann/an/aN/AN/A
Ugandan/an/a30%18%
Myanmarn/an/aN/AN/A
Ethiopian/an/aN/AN/A

Highest Taxed Countries 2021