3. 2019 tax burdens

The 2019 tax burden results based on the eight model household types are presented in Tables 3.1 to 3.13 and Figures 3.1 to 3.7. The model household types vary by marital status, number of children and economic status: single taxpayers, without children, earning 67%, 100% and 167% of the average wage (AW); a single parent, with two children, earning 67% of the AW; a single earner couple at the AW level with two children; two-earner couples at 167% and 200% of the AW with two children; and a two-earner couple, without children, at 167% of the AW.

The chapter presents different measures for the average tax burdens (tax wedge, personal tax rate, net personal tax rate, personal income tax rate and employee social security contribution rate) and marginal rates (tax wedge and net personal tax rate). The results for two measures of tax progressivity are also considered: tax elasticity on gross earnings and labour costs.

    

Average tax burdens

Table 3.11 and Figure 3.1 show the average tax wedge (combined burden of income tax, employee and employer social security contributions) taking into account the amount of cash benefits each specific household type is entitled to, in 2019. Total taxes due minus transfers received are expressed as a percentage of labour costs, defined as gross wage plus employers’ social security contributions (including payroll taxes). In the case of a single person on average wage the tax wedge ranged from 7.0% (Chile) and 18.8% (New Zealand) to 49.4% (Germany) and 52.2% (Belgium). For a one-earner married couple, with two children, at the same wage level, the tax wedge was lowest in New Zealand (3.5%) and Chile (7.0%) and highest in Italy (39.2%) and Greece (37.8%). As stated in Chapter 1, the tax wedge tends to be lower for a married couple, with two-children, at this wage level than for a single individual without children due to both receipt of cash benefits and/or more advantageous tax treatment. It is also interesting to note that the tax wedge for a single parent, with two children, earning 67% of the average wage was negative in New Zealand (-19.4%), Canada (-15.3%), and Poland (-3.4%). This is due to the amount of cash benefits received by these families plus any applicable non-wastable tax credits that exceed the sum of the total tax and social security contributions that are due.

Table 3.2 and Figure 3.2 present the combined burden of the personal income tax and employee social security contributions, expressed as a percentage of gross wage earnings (the corresponding measures for income tax and employee contributions separately are shown in Tables 3.4 and 3.5), in 2019. For single workers at the average wage level without children, the highest average tax plus contributions burdens were seen in Belgium and Germany (both at 39.3%). The lowest average rates were in Chile (7.0%), Mexico (10.8%), Korea (15.3%), Estonia (16.0%), Switzerland (17.4%), Israel (18.3%) and New Zealand (18.8%).

Table 3.3 shows the combined burden of income tax and employee social security contributions, reduced by the entitlement to cash benefits, for each household type in 2019. Figure 3.3 illustrates this burden for single individuals without children and one-earner married couples with two children, with both household types on average earnings. Comparing Table 3.2 and Table 3.3, the average tax rates for families with children (columns 4 -7) are lower in Table 3.3 because most OECD countries support families with children through cash benefits.

A lower burden is also observed for a single individual, without children, at 67% of the average wage in Canada because of a cash transfer paid to mitigate the burden imposed by the federal consumption tax (i.e. the Goods and Services Tax Credit; further details can be found in the country chapter contained in Part II of this Report). The same is true in Denmark for single taxpayers at 67% and 100% of the average wage and two-earner married couples, without children, at 167% of the average wage who receive a Green Check to compensate for increased environmental taxes. A lower burden is also observed in France for a single individual without children, earning 67% of the average wage, who benefits from an in-work cash benefit (i.e. the Prime d’activité).

Comparing Table 3.2 and Table 3.3, for single parents, with two children, earning 67% of the average wage, 31 countries provided cash benefits in 2019. In Poland, Canada and New Zealand these represented respectively 43.3%, 38.3% and 34.5% of income and they were at least 25% of income in Denmark (26.9%) and France (28.9%). Thirty countries provided cash benefits for a one-earner married couple, with two children, earning the average wage level, although these were less generous relative to income, ranging up to 16.3% (Canada). The lower level of cash benefits for the married couple can be attributed to three reasons: single parents may be eligible for more generous treatment; the benefits themselves may be fixed in absolute amount; or the benefits may be subject to income testing.

Table 3.4 shows personal income tax due as a percentage of gross wage earnings in 2019. For single persons, without children, at the average wage (column 2) – the income tax burden varies between 0.05% (Chile) and 35.6% (Denmark). In most OECD member countries, at the average wage level, the income tax burden for one-earner married couples with two children is lower than that faced by single persons (compare columns 2 and 5). These differences are clearly illustrated in Figure 3.4. In nine OECD countries, the income tax burden faced by a one-earner married couple with two children is less than half that faced by a single individual (Germany, Hungary, Luxembourg, Poland, Portugal, the Slovak Republic, Slovenia, Switzerland and the United States). In contrast, there was no difference in eight countries – Australia, Finland, Israel, Lithuania, Mexico, New Zealand, Norway and Sweden. In Chile, the one-earner married couple at the average wage level with children did not pay personal income tax.

There was only one OECD member country where a married average worker with two children had a negative personal income tax burden. This was due to the presence of non-wastable tax credits, whereby credits were paid in excess of the taxes otherwise due. This resulted in tax burdens of -3.8% in the Czech Republic. Similarly, single parents, with two children, earning 67% of the average wage showed a negative tax burden in six countries – Austria, the Czech Republic, Germany, Israel, Spain and the United States. In two other countries – Chile and Hungary – this household type paid no income tax.

A comparison of columns 5 and 6 in Table 3.4 demonstrates that if the second spouse has a job which pays 67% of the average wage, the income tax burden of the household (now expressed as 167% of the average wage) is slightly higher in 22 countries, the largest differences being in the Czech Republic (9.6 percentage points) and Germany (9.7 percentage points). At the same time, the income tax burden is lower in thirteen countries, the largest differences being in the Netherlands (-4.8 percentage points) and Israel (-4.1 percentage points). There is no impact on the tax burden in Chile.

An important consideration in the design of an income tax is the level of progressivity - the rate at which the income tax burden increases with income. A comparison of columns 1 to 3 in Table 3.4 provides an insight into the levels of progressivity in the income tax systems of OECD countries. Comparing the income tax burden of single individuals at the average wage level with their counterparts at 167% of the average wage (columns 2 and 3), the lower paid worker faced a lower tax burden in all countries except in Hungary in 2019. There, a flat tax rate is applied on labour income and all households without children paid the same percentage of income tax. Comparing single individuals at 67% of the average wage level with their counterparts at the average wage level (columns 1 and 2), the lower paid worker also faced a lower tax burden across all OECD countries, except Hungary for the reasons previously mentioned. Finally, the burden faced by single individuals at 67% of the average wage level represented less than 25% of the burden faced by their counterparts at 167% in two OECD countries: Chile (0.0%) and the Netherlands (20.9%).

The addition of social security contributions to the average tax rate reduces this progressivity as well as the proportional tax savings (i.e. tax savings of the low income workers relative to the higher income workers). When comparing Table 3.2 with Table 3.4, the OECD personal average tax burden including social security contributions for single individuals at 67% of the average wage level was only 31.6% lower than their counterparts at 167% compared to the OECD average tax savings of 47.1% for personal income taxes alone in 2019. The OECD average tax savings observed for one-earner married couples with two children at the average wage level relative to the average single workers fell from 34.0% for the personal income tax to 20.9% for the personal average tax burden including social security contributions. These lower figures reflect that there is little variation between social security contribution rates across household types, as shown in Table 3.5.

Table 3.5 shows employee social security contributions as a percentage of gross wage earnings in 2019. For a single worker without children at the average wage (column 2) the contribution rate varies between zero (Australia, Denmark and New Zealand) and 22.1% (Slovenia). Australia, Denmark and New Zealand did not levy any employee social security contributions paid to general government and there were three other countries with very low rates - Iceland (0.3%), Mexico (1.4%) and Estonia (1.6%). Social security contributions are usually levied at a flat rate on all earnings, i.e. without any exempt threshold. In a number of OECD member countries a ceiling applies. However, this ceiling usually applies to wage levels higher than 167% of the average wage. The flat rates result in a constant average burden of employee social security contributions for most countries between 67% and 167% of average wage earnings. Constant proportional burden for employee social security contributions for over the eight model household types, is observed in (in decreasing order of rates) Slovenia (22.1%), Lithuania (19.5%), Poland (17.8%), Greece (15.9%), Turkey (15.0%), the Slovak Republic (13.4%), the Czech Republic, Latvia and Portugal (all 11.0%), Finland (9.8%), Norway (8.2%), the United States (7.7%), Chile (7.0%), Spain (6.4%), Switzerland (6.2%), Ireland (4.0%) and Estonia (1.6%).

In addition, at the average wage level only Germany and the Netherlands imposed different burdens of social security contributions on employees according to their family status (see Figure 3.5).

Marginal tax burdens

Table 3.6 and Figure 3.6 show the percentage of the marginal increase in labour costs that is deducted through the combined effect of increasing personal income tax, employee and employer (including payroll taxes) social security contributions and decreasing cash transfers, in 2019. It is assumed that the gross earnings of the principal earner rise by 1 currency unit. This is the marginal tax wedge. In most cases, it absorbs 25% to 55% of an increase in labour costs for single individuals on average wage without children. However, in six OECD countries these individuals faced marginal wedges above 55% in 2019 – Belgium (65.1%), Italy (61.7%), Germany (60.0%), Austria (59.6%), Luxembourg (57.0%) and Finland (55.1%). By contrast, Chile (10.2%) had the lowest marginal tax wedge in 2019.

In twenty-six OECD member countries, the marginal tax wedge for one-earner married couples at average earnings with two children was either the same or within 5 percentage points as that for single persons at average wage earnings with no children. The marginal tax wedge was more than 5 percentage points lower for one-earner married couples in five countries: Luxembourg (15.9 percentage points), the United States (9.3 percentage points), Germany (8.0 percentage points), Slovenia and Switzerland (both 7.4 percentage points). In contrast, the marginal rate for one-earner married couples with two children was more than 5 percentage points higher than it was for single workers, with no children, in Canada (36.2 percentage points), New Zealand (25.0 percentage points), France (15.0 percentage points), Iceland (9.0 percentage points) and the Netherlands (5.7 percentage points). These higher marginal rates arise because of the phase out of income-tested tax reliefs and/or cash benefits. When an income-tested measure is being phased out, the reduction in the relief or benefit compounds the increase in the tax payable. These programmes are set out in greater detail in the relevant country chapters in Part II of the Report.

Table 3.7 and Figure 3.7 show the incremental change to personal income tax and employee social security contributions less cash benefits when gross wage earnings increase at the margin (it is assumed that the gross earnings of the principal earner rise by 1 currency unit) in 2019. As in the case of the tax wedge, in most cases personal income tax and employee social security contributions absorb 25% to 55% of a worker’s pay rise for single individuals without children at the average wage level. The marginal tax rate for the average worker was higher than 55% only in Belgium (55.6%) and lower than 25% in Chile (10.2%), Mexico (19.5%) and Korea (22.9%).

In twenty-five OECD member countries, the net personal marginal tax rate for one-earner married couples with two children at the average wage level was either the same or within 5 percentage points as that for single persons with no children. The marginal rate was more than 5 percentage points lower for the one-earner married couples in six countries: Luxembourg (18.1 percentage points), the United States (10.0 percentage points), Germany (9.6 percentage points), Slovenia (8.6 percentage points), Switzerland (7.9 percentage points), and Portugal (5.5 percentage points). In contrast, the marginal rate for one-earner married couples with two children was more than 5 percentage points higher than it was for single persons with no children in Canada (39.3 percentage points), New Zealand (25.0 percentage points), France (20.4 percentage points), Iceland (9.6 percentage points) and the Netherlands (6.4 percentage points). Similar to the marginal tax wedges, these higher marginal rates arise because of the phase out of income-tested tax reliefs and/or cash transfers.

Table 3.8 shows the percentage increase in net income relative to the percentage increase in gross wages when the latter increases by 1 currency unit, i.e. the elasticity of after-tax income, in 2019.2 Under a proportional tax system, net income would increase by the same percentage as the increase in gross earnings, in which case the elasticity is equal to 1. The more progressive the system is – at the income level considered – the lower this elasticity will be. In the case of the one-earner married couples, with two children, at the average wage, column 5 of Table 3.8 shows that Canada (0.28), New Zealand (0.47), Belgium (0.55), France (0.56) and Ireland (0.57) had, on this measure, the most progressive systems of income tax plus employee social security contributions taking into account tax provisions and cash transfers for children at this income level in 2019. In contrast, Chile (1.00) and Mexico (0.90) either implemented or were close to a proportional system of income tax plus employee social security contributions – at least for this household type.

It is interesting to note that the elasticity exceeded one for a single individual at 167% of the average earnings in Austria (1.02), indicating that the income tax system at this point in the income scale was regressive. In other words, a percentage increase in gross pay led to an increase in net income in excess of the percentage increase in gross wage earnings.

Table 3.9 provides a different elasticity measure: the percentage increase in net income relative to the percentage increase in labour costs (i.e. gross wage earnings plus employer social security contributions and payroll taxes) when the latter rises by 1 currency unit in 2019.3 In this case, taxes and social security contributions paid by employers are also part of the analysis. In 20 OECD member countries the value of this elasticity lied between 0.50 and 0.97 for the eight selected household types. This elasticity was below 0.50 for the single worker earning the average wage in France (0.30), for single parents earning 67% of the average wage level in Belgium (0.46), the Netherlands (0.45), Australia (0.42), Canada (0.37), France (0.31), Ireland and the United Kingdom (both 0.27) and Poland (0.03), and for one-earner married couples at the average wage level with two children in New Zealand (0.47) and Canada (0.28). In contrast, the elasticity was between 0.98 and 1.0 for most of the household types in Chile and some household types in Hungary, Mexico and Poland, and one household type in Estonia and Japan for the single worker earning 167% of the average wage (1.00 for both countries). Under this elasticity measure the income tax system was regressive for a single individual at 167% of the average wage in Germany (1.14) and Austria (1.20).

Table 3.10 and Table 3.11 set out figures for gross wage earnings and net income for the eight household types in 2019, after all amounts have been converted into U.S. dollars with the same purchasing power. Single workers with the average wage took home (see Table 3.10, column 4) over USD 40 000 in thirteen countries: Switzerland (USD 65 261), Luxembourg (USD 49 823), Korea (USD 49 547), Iceland (USD 48 777), the Netherlands (USD 47 462), Norway (USD 46 569), Ireland (USD 46 269), Australia (USD 45 569), the United Kingdom (USD 45 395), the United States (USD 43 356), Germany (USD 42 698), Austria (USD 42 212) and Denmark (USD 40 952). The corresponding lowest levels (less than USD 20 000) were in Mexico (USD 12 648), Latvia (USD 18 681) and the Slovak Republic (USD 19 654). In the case of a one-earner married couple with two children at the average earnings level (see Table 3.11), families took home over USD 50 000 in Australia, Austria, Belgium, Germany, Iceland, Ireland, Korea, Luxembourg, the Netherlands, Switzerland and the United States; with the lowest level again being in Mexico. With the exception of Mexico, the one-earner married couple in OECD countries took home more than the single individual (with both household types at the average wage level) due to the favourable tax treatment of this household and/or the cash transfers to which they were entitled.

Table 3.12 and Table 3.13 show the corresponding figures to Table 3.10 and Table 3.11 for labour costs and net income in 2019. Thus, the ‘net’ columns in Table 3.10 and Table 3.11 are identical to those in Table 3.12 and Table 3.13, respectively. Usually, labour costs are much higher than gross wages, because any employer social security contributions (including payroll taxes) are taken into account. If measured in US dollars with equal purchasing power, labour costs for single workers earning the average wage level (see Table 3.12) were highest (more than USD 80 000) in Germany (USD 84 303), Switzerland (USD 83 958), Belgium (USD 82 002), Austria (USD 81 034) and Luxembourg (USD 80 921), and lowest (less than USD 30 000) in Mexico (USD 15 839) and Chile (USD 24 160). Annual labour costs are equal to annual gross wage in Chile, Denmark and New Zealand. In those countries neither compulsory employer social security contributions nor payroll taxes paid to general government are levied on wages. However, employers in Chile and Denmark are subject to non-tax compulsory payments.

Table 3.1. Income tax plus employee and employer contributions less cash benefits, 2019
As % of labour costs, by household type and wage level
	Single no ch 67 (% AW)	Single no ch 100 (% AW)	Single no ch 167 (% AW)	Single 2 ch 67 (% AW)	Married 2 ch 100-0 (% AW)	Married 2 ch 100-67 (% AW)2	Married 2 ch 100-100 (% AW)2	Married no ch 100-67 (% AW)2
Australia	22.7	27.9	34.4	1.2	20.8	25.8	27.9	25.8
Austria	43.6	47.9	51.0	22.3	33.7	38.3	41.3	46.2
Belgium	45.4	52.2	58.6	31.2	36.5	44.5	47.9	49.5
Canada	25.2	30.5	31.7	-15.3	11.6	23.9	27.1	29.0
Chile	7.0	7.0	8.3	6.2	7.0	6.7	7.0	7.0
Czech Republic	41.7	43.9	45.8	22.7	26.6	35.4	39.6	43.0
Denmark	32.6	35.4	41.1	4.1	25.2	30.7	32.4	34.3
Estonia	33.3	37.2	41.2	18.6	27.5	30.9	33.3	35.7
Finland	35.6	41.9	48.3	25.5	37.5	36.8	39.7	39.4
France	38.9	46.7	53.1	14.7	36.8	39.9	43.7	44.6
Germany	45.2	49.4	51.0	31.5	34.3	42.5	44.8	47.5
Greece	36.8	40.8	46.5	30.7	37.8	38.3	41.2	40.1
Hungary	44.6	44.6	44.6	21.2	29.6	35.6	37.1	44.6
Iceland	30.0	33.1	38.0	20.0	21.6	31.9	33.1	31.9
Ireland	24.6	33.2	41.8	5.3	17.9	25.5	30.1	29.2
Israel1	15.7	22.7	32.3	3.0	20.3	16.3	19.5	19.5
Italy	41.1	48.0	54.1	26.1	39.2	41.9	45.6	45.2
Japan	31.2	32.7	35.1	25.3	27.5	29.7	30.7	32.1
Korea	20.2	23.3	26.0	16.8	20.6	20.7	22.2	22.1
Latvia	39.8	42.6	42.8	24.6	32.4	35.4	37.5	41.4
Lithuania	34.1	37.2	39.8	16.9	29.0	31.1	33.1	36.0
Luxembourg	30.7	38.4	45.6	8.2	17.3	26.7	31.6	33.3
Mexico	16.4	20.1	23.2	16.4	20.1	18.6	20.1	18.6
Netherlands	30.0	37.3	42.5	6.5	32.3	29.3	33.1	34.3
New Zealand	13.9	18.8	24.3	-19.4	3.5	17.3	18.8	16.8
Norway	32.6	35.7	41.5	22.1	32.1	32.3	33.9	34.4
Poland	35.0	35.6	36.1	-3.4	17.7	25.1	27.0	35.3
Portugal	36.7	41.0	46.3	22.6	29.4	35.9	38.4	38.9
Slovak Republic	39.7	41.9	43.6	30.1	31.1	37.1	38.6	41.0
Slovenia	40.3	43.6	47.1	15.2	28.5	35.8	39.1	42.3
Spain	36.0	39.5	44.0	24.9	34.2	36.5	38.2	38.1
Sweden	40.5	42.7	51.0	32.7	37.4	38.7	40.1	41.8
Switzerland	19.5	22.3	26.9	4.8	9.9	16.1	18.6	22.0
Turkey	35.8	39.1	42.6	34.3	37.5	37.2	38.6	37.8
United Kingdom	26.0	30.9	37.1	12.3	26.3	26.6	28.9	28.9
United States	27.6	29.8	34.2	10.5	18.8	24.1	26.2	28.4
Unweighted average
OECD-Average	32.0	36.0	40.3	15.8	26.4	30.5	32.9	34.3
OECD-EU 23	37.1	41.4	45.8	19.3	30.4	34.7	37.5	39.6
Note: ch = children
← 1. Information on data for Israel: http://oe.cd/israel-disclaimer.
← 2. Two-earner family.
StatLink https://doi.org/10.1787/888934103399

Figure 3.1. Income tax plus employee and employer contributions less cash benefits, 2019

As a % of labour costs, by family-type

Note: The family type ‘single no child’ corresponds to a wage level of 100% of average wage. The family type ‘married one earner couple 2 children’ corresponds to a combined wage level of 100%-0% of average wage.

Source: OECD calculations based on country submissions and OECD Economic Outlook, Volume 2019 issue 2.

 StatLink https://doi.org/10.1787/888934103418

Table 3.2. Income tax plus employee contributions, 2019
As % of gross wage earnings, by household type and wage level
	Single no ch 67 (% AW)	Single no ch 100 (% AW)	Single no ch 167 (% AW)	Single 2 ch 67 (% AW)	Married 2 ch 100-0 (% AW)	Married 2 ch 100-67 (% AW)2	Married 2 ch 100-100 (% AW)2	Married no ch 100-67 (% AW)2
Australia	18.1	23.6	30.5	18.1	23.6	21.4	23.6	21.4
Austria	27.7	33.2	38.1	16.4	25.6	27.3	30.1	31.0
Belgium	31.2	39.3	47.4	25.4	27.3	34.5	37.8	36.1
Canada	18.7	23.2	26.4	10.9	18.7	21.6	23.2	21.6
Chile	7.0	7.0	8.3	7.0	7.0	7.0	7.0	7.0
Czech Republic	22.0	25.0	27.4	4.5	7.2	16.8	19.1	23.8
Denmark	32.8	35.6	41.1	31.1	31.6	34.5	35.6	34.5
Estonia	10.8	16.0	21.3	7.6	11.4	12.6	15.0	13.9
Finland	22.4	30.0	37.7	22.4	30.0	27.0	30.0	27.0
France	23.3	27.3	33.2	20.8	20.8	23.0	25.4	26.6
Germany	34.4	39.3	43.4	18.0	21.3	31.1	33.8	37.1
Greece	21.1	26.1	33.2	20.4	26.6	24.7	26.6	25.2
Hungary	33.5	33.5	33.5	17.4	22.7	27.0	28.1	33.5
Iceland	25.4	28.7	33.9	25.4	21.7	27.4	28.7	27.4
Ireland	16.3	25.9	35.5	11.3	15.7	21.4	25.9	21.4
Israel1	11.7	18.3	27.9	4.2	18.3	13.4	16.3	15.2
Italy	22.4	31.6	39.5	15.0	25.0	25.1	29.4	27.9
Japan	20.6	22.4	26.1	20.6	21.0	21.7	22.4	21.7
Korea	11.9	15.3	19.3	9.3	13.2	13.0	14.5	14.0
Latvia	25.2	28.7	29.0	12.5	20.2	22.2	24.4	27.3
Lithuania	33.0	36.1	38.7	33.0	36.1	34.8	36.1	34.8
Luxembourg	21.1	29.9	38.1	14.2	18.4	24.1	28.4	24.1
Mexico	5.0	10.8	15.4	5.0	10.8	8.5	10.8	8.5
Netherlands	21.5	29.7	37.9	13.5	28.5	23.2	27.0	26.4
New Zealand	13.9	18.8	24.3	15.1	18.8	17.3	18.8	16.8
Norway	23.8	27.3	33.9	21.1	27.3	25.9	27.3	25.9
Poland	24.3	25.0	25.6	22.9	20.3	22.5	23.1	24.7
Portugal	21.7	26.9	33.6	12.2	16.2	20.6	23.7	24.5
Slovak Republic	21.4	24.2	26.5	15.4	14.5	20.7	22.2	23.1
Slovenia	30.7	34.5	38.6	24.8	26.1	29.1	31.3	33.0
Spain	16.8	21.4	27.2	2.5	14.5	17.5	19.7	19.6
Sweden	21.8	24.7	35.6	21.8	24.7	23.5	24.7	23.5
Switzerland	14.5	17.4	22.4	8.7	10.9	14.8	16.8	17.2
Turkey	24.6	28.5	32.6	22.8	26.5	26.2	27.9	26.9
United Kingdom	19.1	23.3	29.5	10.6	22.7	21.6	23.3	21.6
United States	21.5	24.0	28.9	2.9	12.2	17.8	20.2	22.4
Unweighted average
OECD-Average	21.4	25.9	31.2	15.7	20.5	22.2	24.4	24.1
OECD-EU 23	24.1	29.0	34.4	17.1	22.1	24.6	27.0	27.0
Note: ch = children
← 1. Information on data for Israel: http://oe.cd/israel-disclaimer.
← 2. Two-earner family.
StatLink https://doi.org/10.1787/888934103437

Figure 3.2. Income tax plus employee contributions, 2019

As % of gross wage earnings, by family-type and wage level

Note: The family type ‘single no child’ corresponds to a wage level of 100% of average wage. The family type ‘married one earner couple 2 children’ corresponds to a combined wage level of 100%-0% of average wage.

Sources: country submissions, OECD Economic Outlook Volume 2019 issue 2.

 StatLink https://doi.org/10.1787/888934103456

Table 3.3. Income tax plus employee contributions less cash benefits, 2019
As % of gross wage earnings, by household type and wage level
	Single no ch 67 (% AW)	Single no ch 100 (% AW)	Single no ch 167 (% AW)	Single 2 ch 67 (% AW)	Married 2 ch 100-0 (% AW)	Married 2 ch 100-67 (% AW)2	Married 2 ch 100-100 (% AW)2	Married no ch 100-67 (% AW)2
Australia	18.1	23.6	30.5	-4.7	16.0	21.4	23.6	21.4
Austria	27.7	33.2	38.1	0.4	15.0	20.9	24.8	31.0
Belgium	31.2	39.3	47.4	13.4	19.2	29.7	33.8	36.1
Canada	17.5	23.2	26.4	-27.3	2.4	16.0	19.5	21.6
Chile	7.0	7.0	8.3	6.2	7.0	6.7	7.0	7.0
Czech Republic	22.0	25.0	27.4	-3.5	1.8	13.6	19.1	23.8
Denmark	32.6	35.4	41.1	4.1	25.2	30.7	32.4	34.3
Estonia	10.8	16.0	21.3	-9.0	2.9	7.6	10.7	13.9
Finland	22.4	30.0	37.7	10.3	24.7	23.8	27.4	27.0
France	22.5	27.3	33.2	-8.1	13.8	20.4	23.2	26.6
Germany	34.4	39.3	43.4	18.0	21.3	31.1	33.8	37.1
Greece	21.1	26.1	33.2	13.4	22.3	23.0	26.6	25.2
Hungary	33.5	33.5	33.5	5.5	15.5	22.7	24.5	33.5
Iceland	25.4	28.7	33.9	14.7	16.4	27.4	28.7	27.4
Ireland	16.3	25.9	35.5	-5.1	8.9	17.3	22.4	21.4
Israel1	11.7	18.3	27.9	-1.6	15.7	11.9	15.0	15.2
Italy	22.4	31.6	39.5	2.7	20.0	23.5	28.4	27.9
Japan	20.6	22.4	26.1	13.8	16.4	18.9	20.1	21.7
Korea	11.9	15.3	19.3	8.1	12.4	12.5	14.1	14.0
Latvia	25.2	28.7	29.0	6.5	16.1	19.8	22.4	27.3
Lithuania	33.0	36.1	38.7	15.5	27.7	29.8	31.9	34.8
Luxembourg	21.1	29.9	38.1	-4.5	5.9	16.6	22.1	24.1
Mexico	5.0	10.8	15.4	5.0	10.8	8.5	10.8	8.5
Netherlands	21.5	29.7	37.9	-4.8	24.2	20.8	25.0	26.4
New Zealand	13.9	18.8	24.3	-19.4	3.5	17.3	18.8	16.8
Norway	23.8	27.3	33.9	12.0	23.2	23.5	25.3	25.9
Poland	24.3	25.0	25.6	-20.4	4.2	12.8	15.0	24.7
Portugal	21.7	26.9	33.6	4.3	12.6	20.6	23.7	24.5
Slovak Republic	21.4	24.2	26.5	8.8	10.1	18.0	20.0	23.1
Slovenia	30.7	34.5	38.6	1.5	16.9	25.5	29.3	33.0
Spain	16.8	21.4	27.2	2.5	14.5	17.5	19.7	19.6
Sweden	21.8	24.7	35.6	11.6	17.8	19.4	21.2	23.5
Switzerland	14.5	17.4	22.4	-1.1	4.3	10.9	13.6	17.2
Turkey	24.6	28.5	32.6	22.8	26.5	26.2	27.9	26.9
United Kingdom	19.1	23.3	29.5	4.0	18.3	19.0	21.1	21.6
United States	21.5	24.0	28.9	2.9	12.2	17.8	20.2	22.4
Unweighted average
OECD-Average	21.4	25.9	31.2	2.7	14.6	19.5	22.3	24.1
OECD-EU 23	24.1	29.0	34.4	2.9	15.6	21.0	24.3	27.0
Note: ch = children
← 1. Information on data for Israel: http://oe.cd/israel-disclaimer.
← 2. Two-earner family.
StatLink https://doi.org/10.1787/888934103475

Figure 3.3. Income tax plus employee contributions less cash benefits, 2019

As % of gross wage earnings, by family-type and wage level

Note: The family type ‘single no child’ corresponds to a wage level of 100% of average wage. The family type ‘married one earner couple 2 children’ corresponds to a combined wage level of 100%-0% of average wage.

Source: OECD calculations based on country submissions and OECD Economic Outlook, Volume 2018 issue 1.

 StatLink https://doi.org/10.1787/888934103494

Table 3.4. Income tax, 2019
As % of gross wage earnings, by household type and wage level
	Single no ch 67 (% AW)	Single no ch 100 (% AW)	Single no ch 167 (% AW)	Single 2 ch 67 (% AW)	Married 2 ch 100-0 (% AW)	Married 2 ch 100-67 (% AW)2	Married 2 ch 100-100 (% AW)2	Married no ch 100-67 (% AW)2
Australia	18.1	23.6	30.5	18.1	23.6	21.4	23.6	21.4
Austria	9.7	15.2	21.9	-1.6	7.7	9.3	12.1	13.0
Belgium	17.4	25.3	33.5	11.5	13.3	20.6	24.0	22.1
Canada	11.5	15.8	21.7	3.8	11.2	14.2	15.8	14.2
Chile	0.0	0.0	1.3	0.0	0.0	0.0	0.0	0.0
Czech Republic	11.0	14.0	16.4	-6.5	-3.8	5.8	8.1	12.8
Denmark	32.8	35.6	41.1	31.1	31.6	34.5	35.6	34.5
Estonia	9.2	14.4	19.7	6.0	9.8	11.0	13.4	12.3
Finland	12.6	20.2	27.9	12.6	20.2	17.2	20.2	17.2
France	12.0	16.0	22.1	9.5	9.5	11.7	14.1	15.2
Germany	14.3	19.2	27.7	-1.9	1.5	11.3	14.0	17.0
Greece	5.3	10.2	17.4	4.6	10.7	8.8	10.7	9.3
Hungary	15.0	15.0	15.0	0.0	4.2	8.5	9.6	15.0
Iceland	25.0	28.4	33.7	25.0	21.4	27.0	28.4	27.0
Ireland	12.3	21.9	31.5	7.3	11.7	17.4	21.9	17.4
Israel1	5.6	10.3	18.3	-1.9	10.3	6.2	8.2	7.9
Italy	12.9	22.1	30.0	5.5	15.5	15.6	19.9	18.4
Japan	6.2	7.9	13.0	6.2	6.6	7.2	7.9	7.2
Korea	3.3	6.7	12.0	0.7	4.5	4.3	5.8	5.3
Latvia	14.2	17.7	18.0	1.5	9.2	11.2	13.4	16.3
Lithuania	13.5	16.6	19.2	13.5	16.6	15.3	16.6	15.3
Luxembourg	8.8	17.6	25.7	2.0	6.1	11.8	16.1	11.8
Mexico	3.7	9.5	14.0	3.7	9.5	7.2	9.5	7.2
Netherlands	5.7	16.5	27.6	3.8	16.2	11.4	15.9	12.2
New Zealand	13.9	18.8	24.3	15.1	18.8	17.3	18.8	16.8
Norway	15.6	19.1	25.7	12.9	19.1	17.7	19.1	17.7
Poland	6.5	7.2	7.8	5.1	2.5	4.7	5.3	6.9
Portugal	10.7	15.9	22.6	1.2	5.2	9.6	12.7	13.5
Slovak Republic	8.0	10.8	13.1	2.0	1.1	7.3	8.8	9.7
Slovenia	8.6	12.4	16.5	2.7	4.0	7.0	9.2	10.9
Spain	10.5	15.0	20.9	-3.8	8.1	11.2	13.3	13.2
Sweden	14.8	17.7	30.9	14.8	17.7	16.5	17.7	16.5
Switzerland	8.2	11.2	16.2	2.4	4.6	8.6	10.6	10.9
Turkey	9.6	13.5	17.6	7.8	11.5	11.2	12.9	11.9
United Kingdom	10.9	13.9	21.7	2.4	13.3	12.7	13.9	12.7
United States	13.8	16.4	21.3	-4.7	4.5	10.2	12.5	14.8
Unweighted average
OECD-Average	11.4	15.9	21.6	5.9	10.5	12.3	14.4	14.1
OECD-EU 23	12.0	17.0	23.0	5.4	10.1	12.6	15.1	14.9
Note: ch = children
← 1. Information on data for Israel: http://oe.cd/israel-disclaimer.
← 2. Two-earner family.
StatLink https://doi.org/10.1787/888934103513

Figure 3.4. Income tax, by family-type, 2019

As % of gross wage earnings

Note: The family type ‘single no child’ corresponds to a wage level of 100% of average wage. The family type ‘married one earner couple 2 children’ corresponds to a combined wage level of 100%-0% of average wage.

Source: OECD calculations based on country submissions and OECD Economic Outlook, Volume 2019 issue 2.

 StatLink https://doi.org/10.1787/888934103532

Table 3.5. Employee contributions, 2019
As % of gross wage earnings, by household type and wage level
	Single no ch 67 (% AW)	Single no ch 100 (% AW)	Single no ch 167 (% AW)	Single 2 ch 67 (% AW)	Married 2 ch 100-0 (% AW)	Married 2 ch 100-67 (% AW)2	Married 2 ch 100-100 (% AW)2	Married no ch 100-67 (% AW)2
Australia	0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.0
Austria	18.0	18.0	16.2	18.0	18.0	18.0	18.0	18.0
Belgium	13.9	14.0	14.0	13.9	14.0	14.0	13.8	14.0
Canada	7.2	7.4	4.7	7.2	7.4	7.3	7.4	7.3
Chile	7.0	7.0	7.0	7.0	7.0	7.0	7.0	7.0
Czech Republic	11.0	11.0	11.0	11.0	11.0	11.0	11.0	11.0
Denmark	0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.0
Estonia	1.6	1.6	1.6	1.6	1.6	1.6	1.6	1.6
Finland	9.8	9.8	9.8	9.8	9.8	9.8	9.8	9.8
France	11.3	11.3	11.0	11.3	11.3	11.3	11.3	11.3
Germany	20.1	20.1	15.7	19.8	19.8	19.8	19.8	20.1
Greece	15.9	15.9	15.9	15.9	15.9	15.9	15.9	15.9
Hungary	18.5	18.5	18.5	17.4	18.5	18.5	18.5	18.5
Iceland	0.5	0.3	0.2	0.5	0.3	0.4	0.3	0.4
Ireland	4.0	4.0	4.0	4.0	4.0	4.0	4.0	4.0
Israel1	6.1	8.0	9.6	6.1	8.0	7.3	8.0	7.3
Italy	9.5	9.5	9.6	9.5	9.5	9.5	9.5	9.5
Japan	14.5	14.5	13.1	14.5	14.5	14.5	14.5	14.5
Korea	8.7	8.7	7.3	8.7	8.7	8.7	8.7	8.7
Latvia	11.0	11.0	11.0	11.0	11.0	11.0	11.0	11.0
Lithuania	19.5	19.5	19.5	19.5	19.5	19.5	19.5	19.5
Luxembourg	12.2	12.3	12.4	12.2	12.3	12.3	12.3	12.3
Mexico	1.3	1.4	1.5	1.3	1.4	1.3	1.4	1.3
Netherlands	15.7	13.2	10.4	9.8	12.2	11.8	11.1	14.2
New Zealand	0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.0
Norway	8.2	8.2	8.2	8.2	8.2	8.2	8.2	8.2
Poland	17.8	17.8	17.8	17.8	17.8	17.8	17.8	17.8
Portugal	11.0	11.0	11.0	11.0	11.0	11.0	11.0	11.0
Slovak Republic	13.4	13.4	13.4	13.4	13.4	13.4	13.4	13.4
Slovenia	22.1	22.1	22.1	22.1	22.1	22.1	22.1	22.1
Spain	6.4	6.4	6.4	6.4	6.4	6.4	6.4	6.4
Sweden	7.0	7.0	4.7	7.0	7.0	7.0	7.0	7.0
Switzerland	6.2	6.2	6.2	6.2	6.2	6.2	6.2	6.2
Turkey	15.0	15.0	15.0	15.0	15.0	15.0	15.0	15.0
United Kingdom	8.2	9.5	7.8	8.2	9.5	9.0	9.5	9.0
United States	7.7	7.7	7.7	7.7	7.7	7.7	7.7	7.7
Unweighted average
OECD-Average	10.0	10.0	9.6	9.8	10.0	9.9	10.0	10.0
OECD-EU 23	12.1	12.0	11.5	11.8	12.0	11.9	11.9	12.1
Note: ch = children
← 1. Information on data for Israel: http://oe.cd/israel-disclaimer.
← 2. Two-earner family.
StatLink https://doi.org/10.1787/888934103551

Figure 3.5. Employee contributions, 2019

As % of gross wage earnings, by family-type

Note: The family type ‘single no child’ corresponds to a wage level of 100% of average wage. The family type ‘married one earner couple 2 children’ corresponds to a combined wage level of 100%-0% of average wage.

Source: OECD calculations based on country submissions and OECD Economic Outlook, Volume 2019 issue 2.

 StatLink https://doi.org/10.1787/888934103570

Table 3.6. Marginal rate of income tax plus employee and employer contributions less cash benefits, 2019
As % of labour costs, by household type and wage level
	Single no ch 67 (% AW)	Single no ch 100 (% AW)	Single no ch 167 (% AW)	Single 2 ch 67 (% AW)	Married 2 ch 100-0 (% AW)	Married 2 ch 100-67 (% AW)2	Married 2 ch 100-100 (% AW)2	Married no ch 100-67 (% AW)2
Australia	39.6	38.2	42.4	58.5	38.2	38.2	38.2	38.2
Austria	55.7	59.6	40.9	55.7	59.6	59.6	59.6	59.6
Belgium	68.5	65.1	67.8	68.5	65.1	64.2	64.2	64.2
Canada	47.2	39.0	36.1	56.9	75.2	44.2	44.2	39.0
Chile	7.0	10.2	10.2	7.0	7.0	7.0	7.0	10.2
Czech Republic	48.5	48.5	48.5	48.5	48.5	48.5	48.5	48.5
Denmark	39.0	41.9	55.6	37.2	41.9	41.9	41.9	41.9
Estonia	41.2	49.5	41.2	41.2	49.5	49.5	49.5	49.5
Finland	53.7	55.1	58.1	53.7	55.1	55.1	55.1	55.1
France	81.7	49.5	59.4	73.9	64.5	52.5	49.5	49.5
Germany	55.4	60.0	44.3	53.5	52.0	55.2	57.5	57.7
Greece	48.9	48.9	62.6	48.9	48.9	48.9	48.9	48.9
Hungary	44.6	44.6	44.6	44.6	44.6	44.6	44.6	44.6
Iceland	39.5	39.5	47.8	49.8	48.5	39.5	39.5	39.5
Ireland	35.6	53.6	56.7	74.2	53.6	53.6	53.6	53.6
Israel1	31.2	36.8	50.7	34.4	36.8	36.8	36.8	36.8
Italy	54.7	61.7	62.9	55.9	62.8	62.2	62.2	61.7
Japan	33.1	37.3	35.1	33.1	37.3	37.3	37.3	37.3
Korea	29.5	30.2	32.1	22.4	30.2	30.2	30.2	30.2
Latvia	48.2	48.2	45.0	48.2	48.2	48.2	48.2	48.2
Lithuania	43.5	43.5	43.5	43.5	43.5	43.5	43.5	43.5
Luxembourg	47.8	57.0	55.7	52.9	41.1	52.8	57.0	52.8
Mexico	17.5	25.2	28.4	17.5	25.2	25.2	25.2	25.2
Netherlands	52.1	52.1	54.4	57.8	57.8	52.1	52.1	52.1
New Zealand	17.5	30.0	33.0	17.5	55.0	30.0	30.0	30.0
Norway	41.9	41.9	52.6	41.9	41.9	41.9	41.9	41.9
Poland	36.8	36.8	36.8	96.9	36.8	36.8	36.8	36.8
Portugal	46.7	51.1	58.0	46.7	46.7	51.1	51.1	51.1
Slovak Republic	46.2	46.2	46.2	46.2	46.2	46.2	46.2	46.2
Slovenia	43.6	51.0	55.7	43.6	43.6	43.6	43.6	51.0
Spain	44.6	48.3	54.1	44.6	48.3	48.3	48.3	48.3
Sweden	45.3	48.4	69.7	45.3	48.4	48.4	48.4	48.4
Switzerland	26.2	31.8	35.8	18.8	24.3	29.3	33.4	30.1
Turkey	42.8	47.8	47.8	42.8	47.8	47.8	47.8	47.8
United Kingdom	40.2	40.2	49.0	76.3	40.2	40.2	40.2	40.2
United States	31.5	40.8	40.8	52.3	31.5	31.5	40.8	31.5
Unweighted average
OECD-Average	42.4	44.7	47.3	47.5	45.7	44.1	44.5	44.2
OECD-EU 23	48.8	50.5	52.7	54.7	49.9	49.9	50.0	50.1
Note: ch = children It is assumed that gross earnings of the principal earner in the household rise. The outcome may differ if the wage of the spouse goes up, especially if partners are taxed individually.
← 1. Information on data for Israel: http://oe.cd/israel-disclaimer.
← 2. Two-earner family.
StatLink https://doi.org/10.1787/888934103589

Figure 3.6. Marginal rate of income tax plus employee and employer contributions less cash benefits, 2019

As % of labour costs, by family-type

Note: The family type ‘single no child’ corresponds to a wage level of 100% of average wage. The family type ‘married one earner couple 2 children’ corresponds to a combined wage level of 100%-0% of average wage.

Source: OECD calculations based on country submissions and OECD Economic Outlook, Volume 2019 issue 2.

 StatLink https://doi.org/10.1787/888934103608

Table 3.7. Marginal rate of income tax plus employee contributions less cash benefits, 2019
As % of gross wage earnings, by household type and wage level
	Single no ch 67 (% AW)	Single no ch 100 (% AW)	Single no ch 167 (% AW)	Single 2 ch 67 (% AW)	Married 2 ch 100-0 (% AW)	Married 2 ch 100-67 (% AW)2	Married 2 ch 100-100 (% AW)2	Married no ch 100-67 (% AW)2
Australia	36.0	34.5	39.0	56.0	34.5	34.5	34.5	34.5
Austria	43.3	48.2	36.9	43.3	48.2	48.2	48.2	48.2
Belgium	55.6	55.6	59.1	55.6	55.6	54.5	54.5	54.5
Canada	41.4	33.7	33.9	52.2	73.1	39.4	39.4	33.7
Chile	7.0	10.2	10.2	7.0	7.0	7.0	7.0	10.2
Czech Republic	31.1	31.1	31.1	31.1	31.1	31.1	31.1	31.1
Denmark	39.0	41.9	55.6	37.2	41.9	41.9	41.9	41.9
Estonia	21.3	32.4	21.3	21.3	32.4	32.4	32.4	32.4
Finland	44.2	45.9	49.5	44.2	45.9	45.9	45.9	45.9
France	66.0	31.2	42.2	51.6	51.6	35.3	31.2	31.2
Germany	46.6	52.1	44.3	44.3	42.5	46.3	49.1	49.3
Greece	36.2	36.2	53.3	36.2	36.2	36.2	36.2	36.2
Hungary	33.5	33.5	33.5	33.5	33.5	33.5	33.5	33.5
Iceland	35.5	35.5	44.4	46.5	45.1	35.5	35.5	35.5
Ireland	28.5	48.5	52.0	71.4	48.5	48.5	48.5	48.5
Israel1	26.0	32.0	47.0	29.4	32.0	32.0	32.0	32.0
Italy	40.4	49.5	51.2	42.0	51.1	50.3	50.3	49.5
Japan	22.8	27.7	31.1	22.8	27.7	27.7	27.7	27.7
Korea	22.1	22.9	28.1	14.3	22.9	22.9	22.9	22.9
Latvia	35.8	35.8	31.8	35.8	35.8	35.8	35.8	35.8
Lithuania	42.5	42.5	42.5	42.5	42.5	42.5	42.5	42.5
Luxembourg	40.6	51.1	49.6	46.4	33.0	46.3	51.1	46.3
Mexico	12.1	19.5	22.9	12.1	19.5	19.5	19.5	19.5
Netherlands	46.4	46.4	54.4	52.8	52.8	46.4	46.4	46.4
New Zealand	17.5	30.0	33.0	17.5	55.0	30.0	30.0	30.0
Norway	34.4	34.4	46.4	34.4	34.4	34.4	34.4	34.4
Poland	26.5	26.5	26.5	96.3	26.5	26.5	26.5	26.5
Portugal	34.0	39.5	48.0	34.0	34.0	39.5	39.5	39.5
Slovak Republic	29.9	29.9	29.9	29.9	29.9	29.9	29.9	29.9
Slovenia	34.6	43.1	48.6	34.6	34.6	34.6	34.6	43.1
Spain	28.1	32.9	40.4	28.1	32.9	32.9	32.9	32.9
Sweden	28.1	32.2	60.2	28.1	32.2	32.2	32.2	32.2
Switzerland	21.7	27.5	32.2	13.7	19.6	24.9	29.2	25.8
Turkey	32.8	38.7	38.7	32.8	38.7	38.7	38.7	38.7
United Kingdom	32.0	32.0	42.0	73.0	32.0	32.0	32.0	32.0
United States	26.3	36.3	36.3	48.6	26.3	26.3	36.3	26.3
Unweighted average
OECD-Average	33.3	36.1	40.2	38.9	37.2	35.4	35.9	35.6
OECD-EU 23	37.6	39.9	43.6	44.0	39.3	39.2	39.4	39.5
Note: ch = children It is assumed that gross earnings of the principal earner in the household rise. The outcome may differ if the wage of the spouse goes up, especially if partners are taxed individually.
← 1. Information on data for Israel: http://oe.cd/israel-disclaimer.
← 2. Two-earner family.
StatLink https://doi.org/10.1787/888934103627

Figure 3.7. Marginal rate of income tax plus employee contributions less cash benefits, 2019

As % of gross wage earnings, by family-type

Note: The family type ‘single no child’ corresponds to a wage level of 100% of average wage. The family type ‘married one earner couple 2 children’ corresponds to a combined wage level of 100%-0% of average wage.

Source: OECD calculations based on country submissions and OECD Economic Outlook, Volume 2019 issue 2.

 StatLink https://doi.org/10.1787/888934103646

Table 3.8. Percentage increase in net income relative to percentage increase in gross wages, 2019
After an increase of 1 currency unit in gross wages, by household type and wage level
	Single no ch 67 (% AW)	Single no ch 100 (% AW)	Single no ch 167 (% AW)	Single 2 ch 67 (% AW)	Married 2 ch 100-0 (% AW)	Married 2 ch 100-67 (% AW)2	Married 2 ch 100-100 (% AW)2	Married no ch 100-67 (% AW)2
Australia	0.78	0.86	0.88	0.42	0.78	0.83	0.86	0.83
Austria	0.78	0.78	1.02	0.57	0.61	0.66	0.69	0.75
Belgium	0.65	0.73	0.78	0.51	0.55	0.65	0.69	0.71
Canada	0.71	0.86	0.90	0.38	0.28	0.72	0.75	0.85
Chile	1.00	0.97	0.98	0.99	1.00	1.00	1.00	0.97
Czech Republic	0.88	0.92	0.95	0.67	0.70	0.80	0.85	0.90
Denmark	0.91	0.90	0.75	0.65	0.78	0.84	0.86	0.89
Estonia	0.88	0.81	1.00	0.72	0.70	0.73	0.76	0.79
Finland	0.72	0.77	0.81	0.62	0.72	0.71	0.74	0.74
France	0.44	0.95	0.87	0.45	0.56	0.81	0.90	0.94
Germany	0.81	0.79	0.98	0.68	0.73	0.78	0.77	0.80
Greece	0.81	0.86	0.70	0.74	0.82	0.83	0.87	0.85
Hungary	1.00	1.00	1.00	0.70	0.79	0.86	0.88	1.00
Iceland	0.87	0.91	0.84	0.63	0.66	0.89	0.91	0.89
Ireland	0.85	0.69	0.74	0.27	0.57	0.62	0.66	0.66
Israel1	0.84	0.83	0.74	0.70	0.81	0.77	0.80	0.80
Italy	0.77	0.74	0.81	0.60	0.61	0.65	0.69	0.70
Japan	0.97	0.93	0.93	0.90	0.87	0.89	0.90	0.92
Korea	0.88	0.91	0.89	0.93	0.88	0.88	0.90	0.90
Latvia	0.86	0.90	0.96	0.69	0.77	0.80	0.83	0.88
Lithuania	0.86	0.90	0.94	0.68	0.80	0.82	0.84	0.88
Luxembourg	0.75	0.70	0.81	0.51	0.71	0.64	0.63	0.71
Mexico	0.93	0.90	0.91	0.93	0.90	0.88	0.90	0.88
Netherlands	0.68	0.76	0.73	0.45	0.62	0.68	0.71	0.73
New Zealand	0.96	0.86	0.88	0.69	0.47	0.85	0.86	0.84
Norway	0.86	0.90	0.81	0.75	0.85	0.86	0.88	0.89
Poland	0.97	0.98	0.99	0.03	0.77	0.84	0.87	0.98
Portugal	0.84	0.83	0.78	0.69	0.76	0.76	0.79	0.80
Slovak Republic	0.89	0.93	0.95	0.77	0.78	0.86	0.88	0.91
Slovenia	0.94	0.87	0.84	0.66	0.79	0.88	0.93	0.85
Spain	0.86	0.85	0.82	0.74	0.79	0.81	0.84	0.83
Sweden	0.92	0.90	0.62	0.81	0.82	0.84	0.86	0.89
Switzerland	0.92	0.88	0.87	0.85	0.84	0.84	0.82	0.90
Turkey	0.89	0.86	0.91	0.87	0.83	0.83	0.85	0.84
United Kingdom	0.84	0.89	0.82	0.28	0.83	0.84	0.86	0.87
United States	0.94	0.84	0.90	0.53	0.84	0.90	0.80	0.95
Unweighted average
OECD-Average	0.85	0.86	0.86	0.64	0.74	0.80	0.82	0.85
OECD-EU 23	0.82	0.85	0.86	0.59	0.72	0.77	0.80	0.83
Note: ch = children Net income is calculated as gross earnings minus personal income tax and employees' social security contributions plus family benefits. The increase reported in the Table represents a form of elasticity. In a proportional tax system the elasticity would equal 1. The more progressive the system at these income levels, the lower is the elasticity. The reported elasticities in Table 3.8 are calculated as (100 - METR) / (100 - AETR), where METR is the marginal rate of income tax plus employee social security contributions less cash benefits reported in Table 3.7 and AETR is the average rate plus employee social security contributions less cash benefits reported in Table 3.3.
← 1. Information on data for Israel: http://oe.cd/israel-disclaimer.
← 2. Two-earner family. Assumes a rise in the labour costs associated with the principal earner in the household.
StatLink https://doi.org/10.1787/888934103665

Table 3.9. Percentage increase in net income relative to percentage increase in gross labour cost, 2019
After an increase of 1 currency unit in gross labour cost, by household type and wage level
	Single no ch 67 (% AW)	Single no ch 100 (% AW)	Single no ch 167 (% AW)	Single 2 ch 67 (% AW)	Married 2 ch 100-0 (% AW)	Married 2 ch 100-67 (% AW)2	Married 2 ch 100-100 (% AW)2	Married no ch 100-67 (% AW)2
Australia	0.78	0.86	0.88	0.42	0.78	0.83	0.86	0.83
Austria	0.78	0.78	1.20	0.57	0.61	0.66	0.69	0.75
Belgium	0.58	0.73	0.78	0.46	0.55	0.65	0.69	0.71
Canada	0.71	0.88	0.94	0.37	0.28	0.73	0.77	0.86
Chile	1.00	0.97	0.98	0.99	1.00	1.00	1.00	0.97
Czech Republic	0.88	0.92	0.95	0.67	0.70	0.80	0.85	0.90
Denmark	0.91	0.90	0.75	0.65	0.78	0.84	0.86	0.89
Estonia	0.88	0.81	1.00	0.72	0.70	0.73	0.76	0.79
Finland	0.72	0.77	0.81	0.62	0.72	0.71	0.74	0.74
France	0.30	0.95	0.86	0.31	0.56	0.79	0.90	0.91
Germany	0.81	0.79	1.14	0.68	0.73	0.78	0.77	0.80
Greece	0.81	0.86	0.70	0.74	0.82	0.83	0.87	0.85
Hungary	1.00	1.00	1.00	0.70	0.79	0.86	0.88	1.00
Iceland	0.87	0.91	0.84	0.63	0.66	0.89	0.91	0.89
Ireland	0.85	0.69	0.74	0.27	0.57	0.62	0.66	0.66
Israel1	0.82	0.82	0.73	0.68	0.79	0.76	0.79	0.78
Italy	0.77	0.74	0.81	0.60	0.61	0.65	0.69	0.70
Japan	0.97	0.93	1.00	0.90	0.87	0.89	0.90	0.92
Korea	0.88	0.91	0.92	0.93	0.88	0.88	0.90	0.90
Latvia	0.86	0.90	0.96	0.69	0.77	0.80	0.83	0.88
Lithuania	0.86	0.90	0.94	0.68	0.80	0.82	0.84	0.88
Luxembourg	0.75	0.70	0.81	0.51	0.71	0.64	0.63	0.71
Mexico	0.99	0.94	0.93	0.99	0.94	0.92	0.94	0.92
Netherlands	0.68	0.76	0.79	0.45	0.62	0.68	0.72	0.73
New Zealand	0.96	0.86	0.88	0.69	0.47	0.85	0.86	0.84
Norway	0.86	0.90	0.81	0.75	0.85	0.86	0.88	0.89
Poland	0.97	0.98	0.99	0.03	0.77	0.84	0.87	0.98
Portugal	0.84	0.83	0.78	0.69	0.76	0.76	0.79	0.80
Slovak Republic	0.89	0.93	0.95	0.77	0.78	0.86	0.88	0.91
Slovenia	0.94	0.87	0.84	0.66	0.79	0.88	0.93	0.85
Spain	0.86	0.85	0.82	0.74	0.79	0.81	0.84	0.83
Sweden	0.92	0.90	0.62	0.81	0.82	0.84	0.86	0.89
Switzerland	0.92	0.88	0.88	0.85	0.84	0.84	0.82	0.90
Turkey	0.89	0.86	0.91	0.87	0.83	0.83	0.85	0.84
United Kingdom	0.81	0.86	0.81	0.27	0.81	0.81	0.84	0.84
United States	0.95	0.84	0.90	0.53	0.84	0.90	0.80	0.96
Unweighted average
OECD-Average	0.84	0.86	0.88	0.64	0.74	0.80	0.82	0.85
OECD-EU 23	0.81	0.84	0.87	0.58	0.72	0.77	0.80	0.83
Note: ch = children Net income is calculated as gross earnings minus personal income tax and employees' social security contributions plus family benefits. The increase reported in the Table represents a form of elasticity. In a proportional tax system the elasticity would equal 1. The more progressive the system at these income levels, the lower is the elasticity. The reported elasticities in Table 3.9 are calculated as (100 - METR) / (100 - AETR), where METR is the marginal rate of income tax plus employee and employer social security contributions less cash benefits reported in Table 3.6 and AETR is the average rate plus employee and employer social security contributions less cash benefits reported in Table 3.1.
← 1. Information on data for Israel: http://oe.cd/israel-disclaimer.
← 2. Two-earner family. Assumes a rise in the labour costs associated with the principal earner in the household.
StatLink https://doi.org/10.1787/888934103684

Table 3.10. Annual gross wage and net income, single person, 2019
In US dollars using PPP, by household type and wage level
	Single no ch 67 (% AW)		Single no ch 100 (% AW)		Single no ch 167 (% AW)		Single 2 ch 67 (% AW)
	Total gross earnings before taxes	Net income after taxes	Total gross earnings before taxes	Net income after taxes	Total gross earnings before taxes	Net income after taxes	Total gross earnings before taxes	Net income after taxes
Australia	39 986	32 748	59 680	45 569	99 666	69 293	39 986	41 885
Austria	42 347	30 630	63 204	42 212	105 551	65 309	42 347	42 167
Belgium	43 219	29 714	64 505	39 163	107 724	56 627	43 219	37 440
Canada	30 694	25 332	45 813	35 193	76 507	56 308	30 694	39 075
Chile	16 187	15 054	24 160	22 458	40 348	36 987	16 187	15 188
Czech Republic	21 796	17 001	32 532	24 401	54 328	39 426	21 796	22 556
Denmark	42 495	28 622	63 426	40 952	105 921	62 391	42 495	40 746
Estonia	20 844	18 590	31 111	26 123	51 955	40 899	20 844	22 715
Finland	35 252	27 355	52 615	36 817	87 868	54 775	35 252	31 627
France	32 471	25 155	48 465	35 225	80 936	54 067	32 471	35 104
Germany	47 138	30 936	70 355	42 698	117 493	66 506	47 138	38 665
Greece	25 518	20 130	38 086	28 147	63 604	42 482	25 518	22 104
Hungary	21 042	13 993	31 406	20 885	52 448	34 878	21 042	19 887
Iceland	45 857	34 200	68 443	48 777	114 301	75 523	45 857	39 119
Ireland	41 828	34 994	62 430	46 269	104 258	67 297	41 828	43 963
Israel1	28 527	25 181	42 577	34 769	71 104	51 236	28 527	28 975
Italy	31 384	24 342	46 842	32 043	78 227	47 289	31 384	30 531
Japan	33 890	26 895	50 582	39 261	84 471	62 447	33 890	29 217
Korea	39 204	34 533	58 514	49 547	97 718	78 843	39 204	36 015
Latvia	17 553	13 128	26 198	18 681	43 751	31 048	17 553	16 420
Lithuania	21 263	14 255	31 736	20 277	52 999	32 503	21 263	17 976
Luxembourg	47 638	37 598	71 102	49 823	118 740	73 494	47 638	49 769
Mexico	9 505	9 032	14 187	12 648	23 692	20 032	9 505	9 032
Netherlands	45 237	35 520	67 518	47 462	112 755	69 985	45 237	47 414
New Zealand	28 647	24 665	42 757	34 729	71 404	54 084	28 647	34 204
Norway	42 924	32 700	64 066	46 569	106 990	70 697	42 924	37 790
Poland	22 409	16 965	33 447	25 083	55 856	41 564	22 409	26 984
Portugal	21 911	17 153	32 702	23 895	54 613	36 278	21 911	20 973
Slovak Republic	17 369	13 653	25 924	19 654	43 293	31 838	17 369	15 846
Slovenia	24 006	16 629	35 830	23 464	59 836	36 742	24 006	23 635
Spain	29 139	24 236	43 491	34 187	72 630	52 843	29 139	28 409
Sweden	34 696	27 120	51 785	39 015	86 481	55 701	34 696	30 685
Switzerland	52 955	45 293	79 038	65 261	131 994	102 475	52 955	53 555
Turkey	21 440	16 165	32 000	22 890	53 440	36 030	21 440	16 542
United Kingdom	39 671	32 108	59 211	45 395	98 882	69 739	39 671	38 084
United States	38 227	30 018	57 055	43 356	95 282	67 707	38 227	37 104
Unweighted average
OECD-Average	32 063	25 046	47 855	35 080	79 918	54 037	32 063	31 150
OECD-EU 23	31 575	23 906	47 127	33 125	78 702	50 595	31 575	30 596
← 1. Information on data for Israel: http://oe.cd/israel-disclaimer.
StatLink https://doi.org/10.1787/888934103703

Table 3.11. Annual gross wage and net income, married couple, 2019
In US dollars using PPP, by household type and wage level
	Married 2 ch 100-0 (% AW)		Married 2 ch 100-67 (% AW)2		Married 2 ch 100-100 (% AW)2		Married no ch 100-67 (% AW)2
	Total gross earnings before taxes	Net income after taxes	Total gross earnings before taxes	Net income after taxes	Total gross earnings before taxes	Net income after taxes	Total gross earnings before taxes	Net income after taxes
Australia	59 680	50 108	99 666	78 317	119 361	91 137	99 666	78 317
Austria	63 204	53 749	105 551	83 505	126 409	95 087	105 551	72 842
Belgium	64 505	52 101	107 724	75 719	129 011	85 408	107 724	68 847
Canada	45 813	44 732	76 507	64 280	91 625	73 792	76 507	60 012
Chile	24 160	22 469	40 348	37 657	48 321	44 938	40 348	37 513
Czech Republic	32 532	31 933	54 328	46 958	65 064	52 619	54 328	41 403
Denmark	63 426	47 469	105 921	73 432	126 852	85 761	105 921	69 574
Estonia	31 111	30 197	51 955	48 001	62 222	55 534	51 955	44 712
Finland	52 615	39 602	87 868	66 957	105 231	76 419	87 868	64 171
France	48 465	41 763	80 936	64 410	96 929	74 410	80 936	59 442
Germany	70 355	55 347	117 493	80 978	140 710	93 126	117 493	73 953
Greece	41 895	32 550	69 964	53 887	83 790	61 509	69 964	52 334
Hungary	31 406	26 525	52 448	40 518	62 812	47 410	52 448	34 878
Iceland	68 443	57 215	114 301	82 977	136 887	97 553	114 301	82 977
Ireland	62 430	56 899	104 258	86 226	124 859	96 836	104 258	81 929
Israel1	42 577	35 872	71 104	62 659	85 155	72 393	71 104	60 301
Italy	46 842	37 452	78 227	59 827	93 685	67 040	78 227	56 385
Japan	50 582	42 277	84 471	68 477	101 163	80 844	84 471	66 156
Korea	58 514	51 279	97 718	85 521	117 028	100 535	97 718	84 081
Latvia	26 198	21 973	43 751	35 102	52 397	40 654	43 751	31 809
Lithuania	31 736	22 932	52 999	37 186	63 472	43 208	52 999	34 531
Luxembourg	71 102	66 896	118 740	99 037	142 204	110 727	118 740	90 129
Mexico	14 187	12 648	23 692	21 680	28 374	25 297	23 692	21 680
Netherlands	67 518	51 196	112 755	89 306	135 036	101 249	112 755	82 982
New Zealand	42 757	41 277	71 404	59 037	85 513	69 458	71 404	59 394
Norway	64 066	49 171	106 990	81 871	128 132	95 740	106 990	79 270
Poland	33 447	32 056	55 856	48 712	66 894	56 830	55 856	42 048
Portugal	32 702	28 572	54 613	43 349	65 405	49 878	54 613	41 260
Slovak Republic	25 924	23 316	43 293	35 500	51 848	41 501	43 293	33 307
Slovenia	35 830	29 758	59 836	44 587	71 659	50 679	59 836	40 093
Spain	43 491	37 197	72 630	59 913	86 982	69 864	72 630	58 423
Sweden	51 785	42 581	86 481	69 700	103 570	81 596	86 481	66 135
Switzerland	79 038	75 650	131 994	117 597	158 076	136 640	131 994	109 329
Turkey	32 000	23 518	53 440	39 431	63 999	46 156	53 440	39 054
United Kingdom	59 211	48 367	98 882	80 112	118 422	93 399	98 882	77 502
United States	57 055	50 112	95 282	78 285	114 110	91 085	95 282	73 912
Unweighted average
OECD-Average	47 961	40 743	80 095	63 909	95 922	73 787	80 095	60 297
OECD-EU 23	47 293	39 584	78 979	61 866	94 585	70 902	78 979	57 334
← 1. Information on data for Israel: http://oe.cd/israel-disclaimer.
← 2. Two-earner family.
StatLink https://doi.org/10.1787/888934103722

Table 3.12. Annual labour costs and net income, single person, 2019
In US dollars using PPP, by household type and wage level
	Single no ch 67 (% AW)		Single no ch 100 (% AW)		Single no ch 167 (% AW)		Single 2 ch 67 (% AW)
	Total gross labour costs before taxes	Net income after taxes	Total gross labour costs before taxes	Net income after taxes	Total gross labour costs before taxes	Net income after taxes	Total gross labour costs before taxes	Net income after taxes
Australia	42 372	32 748	63 242	45 569	105 614	69 293	42 372	41 885
Austria	54 292	30 630	81 034	42 212	133 165	65 309	54 292	42 167
Belgium	54 408	29 714	82 002	39 163	136 944	56 627	54 408	37 440
Canada	33 888	25 332	50 615	35 193	82 487	56 308	33 888	39 075
Chile	16 187	15 054	24 160	22 458	40 348	36 987	16 187	15 188
Czech Republic	29 164	17 001	43 528	24 401	72 692	39 426	29 164	22 556
Denmark	42 495	28 622	63 426	40 952	105 921	62 391	42 495	40 746
Estonia	27 890	18 590	41 627	26 123	69 516	40 899	27 890	22 715
Finland	42 476	27 355	63 396	36 817	105 872	54 775	42 476	31 627
France	41 174	25 155	66 048	35 225	115 328	54 067	41 174	35 104
Germany	56 483	30 936	84 303	42 698	135 737	66 506	56 483	38 665
Greece	31 875	20 130	47 575	28 147	79 450	42 482	31 875	22 104
Hungary	25 251	13 993	37 687	20 885	62 938	34 878	25 251	19 887
Iceland	48 884	34 200	72 961	48 777	121 844	75 523	48 884	39 119
Ireland	46 408	34 994	69 266	46 269	115 674	67 297	46 408	43 963
Israel1	29 873	25 181	44 991	34 769	75 686	51 236	29 873	28 975
Italy	41 296	24 342	61 635	32 043	102 931	47 289	41 296	30 531
Japan	39 088	26 895	58 341	39 261	96 286	62 447	39 088	29 217
Korea	43 283	34 533	64 602	49 547	106 575	78 843	43 283	36 015
Latvia	21 790	13 128	32 518	18 681	54 299	31 048	21 790	16 420
Lithuania	21 644	14 255	32 304	20 277	53 947	32 503	21 644	17 976
Luxembourg	54 217	37 598	80 921	49 823	135 138	73 494	54 217	49 769
Mexico	10 805	9 032	15 839	12 648	26 070	20 032	10 805	9 032
Netherlands	50 718	35 520	75 638	47 462	121 677	69 985	50 718	47 414
New Zealand	28 647	24 665	42 757	34 729	71 404	54 084	28 647	34 204
Norway	48 504	32 700	72 394	46 569	120 898	70 697	48 504	37 790
Poland	26 091	16 965	38 942	25 083	65 033	41 564	26 091	26 984
Portugal	27 114	17 153	40 469	23 895	67 584	36 278	27 114	20 973
Slovak Republic	22 658	13 653	33 818	19 654	56 476	31 838	22 658	15 846
Slovenia	27 871	16 629	41 598	23 464	69 469	36 742	27 871	23 635
Spain	37 852	24 236	56 495	34 187	94 346	52 843	37 852	28 409
Sweden	45 597	27 120	68 056	39 015	113 653	55 701	45 597	30 685
Switzerland	56 252	45 293	83 958	65 261	140 188	102 475	56 252	53 555
Turkey	25 192	16 165	37 600	22 890	62 791	36 030	25 192	16 542
United Kingdom	43 417	32 108	65 654	45 395	110 800	69 739	43 417	38 084
United States	41 454	30 018	61 723	43 356	102 874	67 707	41 454	37 104
Unweighted average
OECD-Average	37 128	25 046	55 587	35 080	92 546	54 037	37 128	31 150
OECD-EU 23	37 921	23 906	56 867	33 125	94 721	50 595	37 921	30 596
← 1. Information on data for Israel: http://oe.cd/israel-disclaimer.
StatLink https://doi.org/10.1787/888934103741

Table 3.13. Annual labour costs and net income, married couple, 2019
In US dollars using PPP, by household type and wage level
	Married 2 ch 100-0 (% AW)		Married 2 ch 100-67 (% AW)2		Married 2 ch 100-100 (% AW)2		Married no ch 100-67 (% AW)2
	Total gross labour costs before taxes	Net income after taxes	Total gross labour costs before taxes	Net income after taxes	Total gross labour costs before taxes	Net income after taxes	Total gross labour costs before taxes	Net income after taxes
Australia	63 242	50 108	105 614	78 317	126 484	91 137	105 614	78 317
Austria	81 034	53 749	135 326	83 505	162 067	95 087	135 326	72 842
Belgium	82 002	52 101	136 410	75 719	164 005	85 408	136 410	68 847
Canada	50 615	44 732	84 503	64 280	101 229	73 792	84 503	60 012
Chile	24 160	22 469	40 348	37 657	48 321	44 938	40 348	37 513
Czech Republic	43 528	31 933	72 692	46 958	87 056	52 619	72 692	41 403
Denmark	63 426	47 469	105 921	73 432	126 852	85 761	105 921	69 574
Estonia	41 627	30 197	69 516	48 001	83 253	55 534	69 516	44 712
Finland	63 396	39 602	105 872	66 957	126 793	76 419	105 872	64 171
France	66 048	41 763	107 221	64 410	132 095	74 410	107 221	59 442
Germany	84 303	55 347	140 786	80 978	168 606	93 126	140 786	73 953
Greece	52 333	32 550	87 395	53 887	104 665	61 509	87 395	52 334
Hungary	37 687	26 525	62 938	40 518	75 375	47 410	62 938	34 878
Iceland	72 961	57 215	121 844	82 977	145 921	97 553	121 844	82 977
Ireland	69 266	56 899	115 674	86 226	138 531	96 836	115 674	81 929
Israel1	44 991	35 872	74 864	62 659	89 982	72 393	74 864	60 301
Italy	61 635	37 452	102 931	59 827	123 271	67 040	102 931	56 385
Japan	58 341	42 277	97 429	68 477	116 682	80 844	97 429	66 156
Korea	64 602	51 279	107 885	85 521	129 204	100 535	107 885	84 081
Latvia	32 518	21 973	54 308	35 102	65 036	40 654	54 308	31 809
Lithuania	32 304	22 932	53 947	37 186	64 608	43 208	53 947	34 531
Luxembourg	80 921	66 896	135 138	99 037	161 842	110 727	135 138	90 129
Mexico	15 839	12 648	26 643	21 680	31 677	25 297	26 643	21 680
Netherlands	75 638	51 196	126 357	89 306	151 276	101 249	126 357	82 982
New Zealand	42 757	41 277	71 404	59 037	85 513	69 458	71 404	59 394
Norway	72 394	49 171	120 898	81 871	144 789	95 740	120 898	79 270
Poland	38 942	32 056	65 033	48 712	77 884	56 830	65 033	42 048
Portugal	40 469	28 572	67 584	43 349	80 939	49 878	67 584	41 260
Slovak Republic	33 818	23 316	56 476	35 500	67 636	41 501	56 476	33 307
Slovenia	41 598	29 758	69 469	44 587	83 197	50 679	69 469	40 093
Spain	56 495	37 197	94 346	59 913	112 990	69 864	94 346	58 423
Sweden	68 056	42 581	113 653	69 700	136 111	81 596	113 653	66 135
Switzerland	83 958	75 650	140 210	117 597	167 916	136 640	140 210	109 329
Turkey	37 600	23 518	62 791	39 431	75 199	46 156	62 791	39 054
United Kingdom	65 654	48 367	109 071	80 112	131 307	93 399	109 071	77 502
United States	61 723	50 112	103 177	78 285	123 446	91 085	103 177	73 912
Unweighted average
OECD-Average	55 719	40 743	92 935	63 909	111 438	73 787	92 935	60 297
OECD-EU 23	57 074	39 584	95 133	61 866	114 148	70 902	95 133	57 334
← 1. Information on data for Israel: http://oe.cd/israel-disclaimer.
← 2. Two-earner family.
StatLink https://doi.org/10.1787/888934103760

Notes

← 1. Tables 3.1 to 3.7 show figures rounded to the first decimal. Due to rounding, changes in percentage points that are presented in the text may differ by one-tenth of a percentage point relative to those in the Tables.

← 2. The reported elasticities in Table 3.8 are calculated as (100 - METR) / (100 - AETR), where METR is the marginal rate of income tax plus employee social security contributions less cash benefits reported in Table 3.7 and AETR is the average rate of income tax plus employee social security contributions less cash benefits reported in Table 3.3.

← 3. The reported elasticities in Table 3.9 are calculated as (100 - METR) / (100 - AETR), where METR is the marginal rate of income tax plus employee and employer social security contributions less cash benefits reported in Table 3.6 and AETR is the average rate of income tax plus employee and employer social security contributions less cash benefits reported in Table 3.1.