A country's personal income tax rate is only one indicator of how much tax an individual actually ends up paying on their income, according to a report by KPMG.
"Our broader analysis further emphasizes the point that other taxes and the impact of deductions clearly need to be considered... Interestingly, the difference between top tax rates and effective combined tax and employee social security rates shows that neither of the two countries with the largest top marginal tax rates (Aruba and Sweden) feature among the top five countries when we use either $100,000 or $300,000 as a basis for comparison," write the authors.
For someone with a gross income of $100,000 a year, these are some of the countries in which they would have to shell out the most for, tax and social security combined. The United States is much further down the list, being the 55th most expensive country on the list, according to Business Insider.
Let's take a look at effective income tax and Social Security rates on $100,000 of gross income around the world, including India.
Source: Business Insider
...
Belgium
Effective income tax rate: 33.9 per cent
Effective employee social security rate: 13.1 per cent
Global rank: 1
...
Greece
Effective income tax rate: 30.0 per cent
Effective employee social security rate: 16.5 per cent
Global rank: 2
...
Croatia
Effective income tax rate: 26.8 per cent
Effective employee social security rate: 19.5 per cent
Global rank: 3
...
Italy
Effective income tax rate: 35.6 per cent
Effective employee social security rate: 9.6 per cent
Global rank: 4
...
Germany
Effective income tax rate: 28.3 per cent
Effective employee social security rate: 15.5 per cent
Global rank: 5
...
Denmark
Effective income tax rate: 42.1 per cent
Effective employee social security rate: 0.2 per cent
Global rank: 6
...
Curacao
Effective income tax rate: 38.6 per cent
Effective employee social security rate: 3.4 per cent
Global rank: 7
...
France
Effective income tax rate: 20.0 per cent
Effective employee social security rate: 22 per cent
Global rank: 8
...
Senegal
Effective income tax rate: 42.0 per cent
Effective employee social security rate: 0.0 per cent
Global rank: 9
...
Sint Maarten
Effective income tax rate: 37.4 per cent
Effective employee social security rate: 3.1 per cent
Global rank: 10
...
Luxembourg
Effective income tax rate: 27.9 per cent
Effective employee social security rate: 12.5 per cent
Global rank: 11
...
The Netherlands
Effective income tax rate: 28.5 per cent
Effective employee social security rate: 11.8 per cent
Global rank: 12
...
Portugal
Effective income tax rate: 28.9 per cent
Effective employee social security rate: 11.0 per cent
Global rank: 13
...
India
Effective income tax rate: 27.3 per cent
Effective employee social security rate: 12.0 per cent
Global rank: 14
...
Norway
Effective income tax rate: 31.3 per cent
Effective employee social security rate: 7.8 per cent
Global rank: 15
...
Brazil
Effective income tax rate: 27.5 per cent
Effective employee social security rate: 11.0 per cent
Global rank: 16
...
Austria
Effective income tax rate: 24.4 per cent
Effective employee social security rate: 14.0 per cent
Global rank: 17
...
Finland
Effective income tax rate: 30.3 per cent
Effective employee social security rate: 7.7 per cent
Global rank: 18
...
Bosnia and Herzegovina
Effective income tax rate: 6.5 per cent
Effective employee social security rate: 31.0 per cent
Global rank: 19
...
Sweden
Effective income tax rate: 36.3 per cent
Effective employee social security rate: 0.0 per cent
Global rank: 20
...
Ireland
Effective income tax rate: 32.0 per cent
Effective employee social security rate: 4.0 per cent
Global rank: 21
...
Latvia
Effective income tax rate: 25.0 per cent
Effective employee social security rate: 11.0 per cent
Global rank: 22
...
Guatemala
Effective income tax rate: 31.0 per cent
Effective employee social security rate: 4.8 per cent
Global rank: 23
...
Turkey
Effective income tax rate: 29.8 per cent
Effective employee social security rate: 6.0 per cent
Global rank: 24
...
Poland
Effective income tax rate: 27.9 per cent
Effective employee social security rate: 7.4 per cent
Global rank: 25
...
Spain
Effective income tax rate: 32.0 per cent
Effective employee social security rate: 3.3 per cent
Global rank: 26
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