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.
The figure is 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% |
United States compared with similar countries
- United States's 27.5 Rate is below the median for high income countries, which is 36.4 Rate, 76% of the median. (33 countries reporting)
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
- 34 Japan 30.7 Rate compare
- 34 Netherlands 30.7 Rate compare
- 36 United States 27.6 Rate compare
- 38 Iceland 27.3 Rate compare
- 39 Malta 26.5 Rate compare
- 40 United Kingdom 26.1 Rate compare
More work & labour data for United States
- Persons outside the labour force (ILO modelled estimates) 113,208 (2027)
- Labour force participation rate (ILO modelled estimates) 61.24 (2027)
- Labour force (ILO modelled estimates) 178,849 (2027)
- Unemployment rate (ILO modelled estimates) 4.4 (2027)
- Labour dependency ratio 1.05 (2027)
- Output per worker, GDP constant 2021 international $ at PPP 159,991 (2027)
- Output per worker, GDP constant 2015 US $ 141,322 (2027)
- Employment-to-population ratio (ILO modelled estimates) 58.55 (2027)
- Persons outside the labour force (ILO modelled estimates) (15+) 1.27 % change on previous year (2027)
- Labour force (ILO modelled estimates) (15+), annual growth rate 0.3372 % change on previous year (2027)
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).