Tax rate on low wage earners - tax wedge on labour costs in United States
United States: Tax rate on low wage earners - tax wedge on labour costs was 27.5 Rate in 2023. ▼ Falling
Latest (2023)
27.5 Rate
Change on year
down 1.1%
World rank
37th
of 44 countries
All-time high
29.5 Rate
in 2014
All-time low
23.5 Rate
in 2020
Years of data
24
2000–2023
Tax rate on low wage earners - tax wedge on labour costs in United States, 2000–2023
Source: Eurostat. Measured in Rate.
Analysis
In 2023, tax rate on low wage earners - tax wedge on labour costs in United States stood at 27.5 Rate.
That represents a change of down 1.1% on the previous year and down 6.5% over ten years.
Over the whole period, tax rate on low wage earners - tax wedge on labour costs in United States peaked at 29.5 Rate in 2014 and was at its lowest, 23.5 Rate, in 2020.
United States ranks 37th of 44 countries on this measure, in the bottom quarter.
The long-run direction has been consistently falling across the 24 years of available data.
Tax rate on low wage earners - tax wedge on labour costs in United States, year by year
| Year | Rate | Change |
|---|---|---|
| 2000 | 29 Rate | — |
| 2001 | 28.9 Rate | -0.3% |
| 2002 | 28.8 Rate | -0.3% |
| 2003 | 28.7 Rate | -0.3% |
| 2004 | 28.7 Rate | +0.0% |
| 2005 | 28.7 Rate | +0.0% |
| 2006 | 28.8 Rate | +0.3% |
| 2007 | 29 Rate | +0.7% |
| 2008 | 27.4 Rate | -5.5% |
| 2009 | 28 Rate | +2.2% |
| 2010 | 28.3 Rate | +1.1% |
| 2011 | 27.8 Rate | -1.8% |
| 2012 | 27.8 Rate | +0.0% |
| 2013 | 29.4 Rate | +5.8% |
| 2014 | 29.5 Rate | +0.3% |
| 2015 | 29.2 Rate | -1.0% |
| 2016 | 29.2 Rate | +0.0% |
| 2017 | 29.2 Rate | +0.0% |
| 2018 | 27.6 Rate | -5.5% |
| 2019 | 27.5 Rate | -0.4% |
| 2020 | 23.5 Rate | -14.5% |
| 2021 | 24.7 Rate | +5.1% |
| 2022 | 27.8 Rate | +12.6% |
| 2023 | 27.5 Rate | -1.1% |
Averages by decade
| Decade | Average | Lowest | Highest | Years |
|---|---|---|---|---|
| 2000s | 28.6 Rate | 27.4 Rate | 29 Rate | 10 |
| 2010s | 28.55 Rate | 27.5 Rate | 29.5 Rate | 10 |
| 2020s | 25.88 Rate | 23.5 Rate | 27.8 Rate | 4 |
Countries ranked near United States
- 35 Greece 30.5 Rate compare
- 36 Iceland 27.7 Rate compare
- 37 United States of America 27.5 Rate compare
- 39 Malta 26.6 Rate compare
- 40 United Kingdom of Great Britain and Northern Ireland 26.1 Rate compare
- 40 United Kingdom 26.1 Rate compare
More work & labour data for United States
- STAN Database for Structural Analysis, 2025 edition — Total employment 285,643 Hours (2023)
- Unemployment by sex and age - monthly data 7,476 Thousand persons (2026)
- STAN Database for Structural Analysis, 2020 edition — Total employment 276,623 Hours (2019)
- Monthly minimum wages - bi-annual data 1,103 (2026)
- Annual net earnings 34,012 (2023)
- Tax rate on low wage earners - unemployment trap 59.7 Rate (2023)
- Annual net earnings of a full-time single worker without children 33,848 Purchasing power standard (PPS) (2023)
- Tax rate on low wage earners - low wage trap 27.7 Rate (2023)
- Employment and labour force by sex and age - quarterly data 20,303 Thousand persons (2020)
- Monthly minimum wage as a proportion of average monthly earnings (%) 36.7% (2009)
Frequently asked questions
- What is tax rate on low wage earners - tax wedge on labour costs in United States?
- Tax rate on low wage earners - tax wedge on labour costs in United States was 27.5 Rate in 2023, according to Eurostat.
- What is the highest tax rate on low wage earners - tax wedge on labour costs recorded in United States?
- The highest recorded value was 29.5 Rate in 2014.
- What is the lowest tax rate on low wage earners - tax wedge on labour costs recorded in United States?
- The lowest recorded value was 23.5 Rate in 2020.
- How does United States rank for tax rate on low wage earners - tax wedge on labour costs?
- United States ranks 37th out of 44 countries with data for 2023.
- Is tax rate on low wage earners - tax wedge on labour costs rising or falling in United States?
- Over the last ten years it is down 6.5%. The long-run trend across the full record is falling.
- Where does this United States data come from?
- The figures come from Eurostat, published as part of Tax rate on low wage earners - tax wedge on labour costs. Statizoid updates them automatically from the source API.
Download this data
CSV · JSON — 24 observations, free to reuse under CC BY 4.0 (Eurostat).