6. Evolution of effective tax rates on labour income (2000-22)

This chapter presents the evolution of the effective tax rates on labour income for the eight household types depicted by the Taxing Wages models over the period from 2000 to 2022. Tables 6.1 to 6.24, titled “Tables showing income taxes, social security contributions and cash benefits”, correspond to a tax burden measure for a particular household type. The discussion focuses on the main observable trends over the period and highlights important year-on-year changes1. Effective tax rates on labour income shown in this chapter all declined between 2000 and 2022 for all of the household types.

  • The fall over the period in the OECD average tax wedge ranged from 1.3 percentage points for single workers earning 167% of the average wage (AW) to 3.0 percentage points for single parents earning 67% of the AW.

  • The decrease in the OECD average personal income tax rate ranged from 0.8 percentage points for single workers earning 100% of AW to 1.6 percentage points for single parents earning 67% of the AW.

  • The OECD net personal average tax burden also declined for all household types in the period considered. The reduction ranged from 0.5 percentage points for single workers earning 167% of the AW to 1.7 percentage points for single parents earning 67% of the AW.

Note

← 1. Tables 6.1 to 6.24 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.

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