Top personal income tax rates across Europe vary sharply in 2026, with a clear divide between high-tax Northwestern countries and lower-tax Eastern economies.
According to data from the Tax Foundation, the highest marginal income tax rates range from just 10% in Bulgaria and Romania to 60.5% in Denmark.
Denmark Leads Europe
Denmark currently has the highest top personal income tax rate in Europe at 60.5%. The country recently introduced a new tax bracket for annual earnings above DKK 2.8 million (€375,000), increasing the previous top rate of 55.6%.
Six other countries also apply top rates above 50%:
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France
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Austria
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Spain
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Belgium
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Portugal
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Sweden
In Slovenia and the Netherlands, top earners also face rates close to 50%.
European Average at 38.5%
Across 35 European countries, the average top personal income tax rate stands at 38.5%. Among European members of the Organisation for Economic Co-operation and Development (OECD), the average rises to 43.4%.
In 18 countries, the top rate exceeds 40%. Nine countries, including Ireland, Germany, Italy, Finland, United Kingdom, Greece and Turkey, apply top rates between 40% and 48%.
Among Europe’s five largest economies, the gap is notable. The United Kingdom applies a 45% top rate, while France reaches 55.4%, creating a difference of around 10 percentage points.
Eastern Europe Maintains Lower Rates
In contrast, several Eastern European countries maintain significantly lower top rates. Besides Bulgaria and Romania at 10%, rates remain below 25% in:
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Moldova
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Hungary
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Ukraine
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Georgia
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Czechia
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Estonia
Many of these countries operate flat-tax systems, helping keep top rates relatively low.
Policy Shifts Reshape Tax Landscape
Tax systems continue to evolve. In addition to Denmark’s increase, Estonia raised its flat income tax from 22% to 24%. Slovakia introduced two new tax brackets, lifting its top rate from 25% to 35%.
By contrast, Finland reduced its top personal income tax rate from 51.5% to 45%.
Alex Mengden, a global policy analyst at the Tax Foundation, noted that governments often raise revenue more efficiently by adjusting lower marginal rates rather than significantly increasing top brackets, due to incentives affecting income generation.
Public perception of tax fairness remains mixed. According to a recent Eurobarometer survey, only one in five people in the EU believe taxes are paid in proportion to income and wealth “to a large extent,” while about half say this is true “to some extent.”
The data highlights how tax policy continues to reflect broader economic priorities and political choices across Europe.
