Tax rate on low wage earners - low wage trap by country
Countries reporting
42
Highest
97.09 Rate
Italy
Lowest
11.45 Rate
Cyprus
Median
43.17 Rate
Years covered
25
2001–2025
Data points
974
What the numbers show
Tax rate on low wage earners - low wage trap is currently reported for 42 countries. The highest value is 97.09 Rate in Italy; the lowest is 11.45 Rate in Cyprus.
The median across all reporting countries is 43.17 Rate, and the mean is 43.51 Rate.
The gap between the highest and lowest reporting country is a factor of about 8.
Over the past decade 19 countries rose and 23 fell. The largest increase was in Italy (up 130.6%), and the largest decrease in Cyprus (down 76.0%).
Tax rate on low wage earners - low wage trap: full country ranking
| # | Country | Latest | Year | 10-year change | Trend |
|---|---|---|---|---|---|
| 1 | Italy | 97.09 Rate | 2025 | up 130.6% | rising |
| 2 | Germany | 72.98 Rate | 2025 | up 27.4% | flat |
| 3 | Austria | 69.87 Rate | 2025 | up 35.9% | falling |
| 4 | Luxembourg | 65.82 Rate | 2025 | up 15.9% | rising |
| 5 | Malta | 63.02 Rate | 2025 | up 121.1% | rising |
| 6 | Slovenia | 54.95 Rate | 2025 | up 11.0% | falling |
| 6 | Slovenia | 54.95 Rate | 2025 | up 11.0% | falling |
| 8 | Sweden | 53.27 Rate | 2025 | up 38.0% | falling |
| 9 | Japan | 52.8 Rate | 2023 | down 13.9% | falling |
| 10 | Belgium | 52.67 Rate | 2025 | down 9.7% | flat |
| 11 | Poland | 52.43 Rate | 2025 | down 16.8% | falling |
| 11 | Poland | 52.43 Rate | 2025 | down 16.8% | falling |
| 13 | France | 51.37 Rate | 2025 | down 3.4% | rising |
| 14 | Finland | 50.49 Rate | 2025 | down 11.6% | falling |
| 15 | Norway | 50.3 Rate | 2023 | down 6.0% | falling |
| 16 | Lithuania | 47.01 Rate | 2025 | down 15.4% | rising |
| 16 | Lithuania | 47.01 Rate | 2025 | down 15.4% | rising |
| 18 | Czechia | 46.35 Rate | 2025 | down 12.7% | rising |
| 19 | Romania | 44.08 Rate | 2025 | up 39.9% | rising |
| 20 | Netherlands | 43.24 Rate | 2025 | down 35.4% | falling |
| 20 | Netherlands | 43.24 Rate | 2025 | down 35.4% | falling |
| 22 | Iceland | 43.1 Rate | 2024 | down 9.8% | flat |
| 23 | Croatia | 42.94 Rate | 2025 | up 56.7% | rising |
| 23 | Croatia | 42.94 Rate | 2025 | up 56.7% | rising |
| 25 | Denmark | 39.45 Rate | 2025 | down 50.6% | falling |
| 26 | Ireland | 34.47 Rate | 2025 | down 41.1% | rising |
| 27 | Switzerland | 34.1 Rate | 2024 | down 13.7% | falling |
| 28 | Hungary | 33.5 Rate | 2025 | down 2.9% | falling |
| 29 | Latvia | 33.32 Rate | 2025 | up 7.1% | falling |
| 29 | Latvia | 33.32 Rate | 2025 | up 7.1% | falling |
| 31 | Portugal | 31.81 Rate | 2025 | up 61.5% | rising |
| 32 | Türkiye | 31.6 Rate | 2023 | up 3.6% | rising |
| 33 | Greece | 30.8 Rate | 2025 | up 40.6% | falling |
| 34 | Slovakia | 29.85 Rate | 2025 | down 1.8% | rising |
| 34 | Slovakia | 29.85 Rate | 2025 | down 1.8% | rising |
| 36 | Estonia | 28.51 Rate | 2025 | up 24.5% | falling |
| 36 | Estonia | 28.51 Rate | 2025 | up 24.5% | falling |
| 38 | United States | 27.7 Rate | 2023 | down 9.2% | flat |
| 38 | United States | 27.7 Rate | 2023 | down 9.2% | flat |
| 40 | Spain | 24.68 Rate | 2025 | down 7.6% | rising |
| 41 | Bulgaria | 22.4 Rate | 2025 | up 3.7% | flat |
| 42 | Cyprus | 11.45 Rate | 2025 | down 76.0% | volatile |
Regions and income groups
Aggregates are excluded from the country ranking above so that a region can never outrank a country.
- Euro area – 20 countries (2023-2025) 58.09 Rate
- European Union - 27 countries (from 2020) 55.33 Rate