Top Personal Income Tax Rates in Europe: Who Pays the Most in 2026?
In most European countries, people who earn more money usually pay higher taxes. This system is called a progressive tax system. It means that as your income increases, the percentage of tax you pay also increases. However, the highest personal income tax rates are very different from one country to another. There is also a clear gap between Northwestern Europe and Eastern Europe.
Tax fairness is important in every society. It reflects whether people are paying taxes based on how much they earn and how wealthy they are. While most European countries follow a progressive system, the top tax rates vary widely in 2026.
According to the Tax Foundation, top personal income tax rates range from as low as 10% in Bulgaria and Romania to as high as 60.5% in Denmark. Denmark currently has the highest top income tax rate in Europe.
Besides Denmark, six other countries have top tax rates above 50%. These are France, Austria, Spain, Belgium, Portugal, and Sweden. In Slovenia and the Netherlands, top earners also face tax rates that are close to 50%.
The European Average
Across 35 European countries, the average top personal income tax rate is 38.5%. Among European countries that are members of the OECD, the average is even higher, at 43.4%. In total, 18 European countries have a top rate of more than 40%.
Nine countries have top tax rates between 40% and 48%. These include Ireland, Germany, Italy, Iceland, Luxembourg, Finland, the United Kingdom, Greece, and Turkey.
When looking at Europe’s five largest economies, the difference in top tax rates is quite noticeable. In the United Kingdom, the top rate is 45%, while in France it is 55.4%. This creates a gap of about 10 percentage points between these major economies.
On the other hand, several countries in Eastern Europe have much lower top rates. In addition to Bulgaria and Romania, countries such as Moldova, Hungary, Ukraine, Georgia, Czechia, and Estonia have top personal income tax rates below 25%.
A Clear Regional Divide
There is a strong regional pattern in Europe. Nordic and Western European countries usually have the highest top tax rates, often between 45% and 60%. These countries often have higher public spending and strong social welfare systems.
However, there are exceptions. Norway, for example, has a top tax rate just below 40%, which is lower than many of its Nordic neighbors.
In contrast, most non-EU Eastern European economies have lower top tax rates. Central and Eastern European countries, including many in the Balkans, generally keep their top rates lower. Some of these countries use a flat tax system, where everyone pays the same percentage of income, regardless of how much they earn. This helps keep the top rate relatively low.
Turkey is an exception among Eastern European economies, with a top rate of around 41%, which is closer to mid-level European Union tax systems.
Tax Rates Can Change
Tax rates are not permanent. Governments often adjust them based on new policies and economic needs. Over the past year, several European countries have changed their top personal income tax rates.
For example, Denmark introduced a new tax bracket for people earning more than DKK 2.8 million (about €375,000). As a result, its top rate increased from 55.6% to 60.5%.
Estonia raised its flat income tax rate from 22% to 24%. Slovakia added two new tax brackets, increasing its top rate from 25% to 35%.
However, not all changes involved increases. Finland reduced its top personal income tax rate from 51.5% to 45%.
According to Alex Mengden, a global policy analyst at the Tax Foundation, governments can often collect revenue more efficiently by adjusting tax rates at lower income levels rather than only raising the highest rates. Higher top rates can reduce people’s motivation to earn more if they know a large part will go to taxes.
Public opinion about tax fairness also matters. In 2025, only one in five people in the European Union believed that taxes were paid fairly and in proportion to income to a large extent. Around 51% said this was true to some extent, according to a Eurobarometer study.
Overall, while progressive taxation is common across Europe, how much top earners pay depends greatly on the country they live in.
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