Canada

AITRAW = All in average income tax rates at average wage OECD Taxing Wages. Taxing Wages provides unique information on income tax paid by workers and social security contributions levied on employees and their employers in OECD countries. In addition, this annual publication specifies family benefits paid as cash transfers. Amounts of taxes and benefits are detailed program by program, for eight household types which differ by income level and household composition. Results reported include the marginal and effective tax burden for one- and two-earner families, and total labour costs of employers.

The Benefits and Wages series addresses the complicated interactions of tax and benefit systems for different family types and labour market situations. The series is a valuable tool used to compare the different benefits made available to those without work and those with different levels of in-work income for OECD countries and EU countries. The main social policy areas are as follows: taxes and social security contributions due on earnings and benefits, unemployment benefits, social assistance, family benefits, housing benefits, and in-work benefits. OECD Work Incentive and Income adequacy indicators, country specific files, the tax-benefit models and the tax benefit calculator, including detailed descriptions of all cash benefits available to those in and out of work as well as the taxes they were liable to pay are available on Benefits and Wages: OECD Indicators   Unit of measure used: Estonia: 2011 - EUR; 2010; 2009; 2008; 2007; 2006; 2005 -EEK Slovak Republic: 2010; 2009 - EUR; 2008; 2007; 2006; 2005 -SKK

CGPITRT: Central government personal income tax rates and threshold   This table reports statutory central government personal income tax rates for wage income plus the taxable income thresholds at which these statutory rates apply. The table also reports basic/standard tax allowances, tax credits and surtax rates. The information is applicable to a single person without dependents. The threshold, tax allowance and tax credit amounts are expressed in national currencies Tapered means that the tax relief basic amount is reduced with increasing income Further explanatory notes may be found in the Explanatory Annex This data represents part of the data presented within the Excel file “Personal income tax rates and thresholds for central governments - Table I.1”. The Data for 1981 to 1999 is not included here within as not all the data for these years is either available, or can be verified. The OECD tax database provides comparative information on a range of tax statistics - tax revenues, personal income taxes, non-tax compulsory payments, corporate and capital income taxes and taxes on consumption - that are levied in the 34 OECD member countries.” Tax policy Analysis homepage OECD Tax Database Taxing Wages Dissemination format(s) This data is also presented through the OECD Tax database webpage. OECD Tax Database

Current taxes on income, wealth, etc. (ESA 2010 code D.5) cover all compulsory, unrequited payments, in cash or in kind, levied periodically by general government and by the rest of the world on the income and wealth of institutional units, and some periodic taxes which are assessed neither on that income nor that wealth. In ESA 2010, current taxes on income, wealth, etc. are divided into taxes on income and other current taxes.

 This indicator measures the proportion of earnings that are lost to either higher taxes or lower benefit entitlements when a jobless person takes up employment. It is commonly referred to as "Participation Tax Rate (PTR)" as it measures financial disincentives to participate in the labour market.

Related data is available here: https://knoema.com/PTRCCSA/ptrs-for-parents-claiming-guaranteed-minimum-income-gmi-benefits-and-using-childcare-services This indicator measures the proportion of earnings that are lost to either higher taxes, lower benefits or childcare costs when a parent with young children takes up full-time employment and requires use of centre-based childcare services.

The indicator measures the total amount of energy tax revenue in millions of euro for all NACE activities plus households, non-residents and not allocated. This shows the size that the energy taxes take in absolute (currency) terms, to complement the share of energy taxes paid by paying sector. Energy taxes are one of the four tax categories that make up environmental taxes (the other three being pollution taxes, resource taxes (excluding taxes on oil and gas extraction) and transport taxes). As per environmental taxes, the energy tax base is a physical unit of something that has a proven specific negative impact on the environment, but it is restricted to certain items that are concerning the energy sector, which also includes CO2 taxes.

The indicator measures the percentage of energy taxes that are raised against seven paying sectors as a proportion of the total amount of tax revenue raised from energy taxes. The seven sectors are: Households, Industry (except Construction), Construction, Wholesale and retail trade and repair of motor vehicles and motorcycles, Transportation and storage, Services (except wholesale and retail trade, transportation and storage), and Agriculture, forestry and fishing. Energy taxes are one of the four tax categories that make up environmental taxes (the other three being pollution taxes, resource taxes (excluding taxes on oil and gas extraction) and transport taxes). As per environmental taxes, the energy tax base is a physical unit of something that has a proven specific negative impact on the environment, but it is restricted to certain items that are concerning the energy sector, which also includes CO2 taxes.

The indicator is presented in two ways. Firstly, as the proportion of environmental tax revenues in total revenues from all taxes and social contributions. This evidences the different taxation splits that Member States have between environment and other factors such as labour and capital. Secondly, the indicator is presented as the proportion of environmental tax revenues in Gross Domestic Product (GDP). This allows a comparison of environmental taxation between Member States taking into account the size of the different national economies.

Definition of an environmental tax (Regulation (EU) N° 691/2011) An environmental tax is a tax whose tax base is a physical unit (or a proxy of a physical unit) of something that has a proven, specific negative impact on the environment, and which is identified in ESA2010 as a tax. Eurostat collects data on environmental tax revenue (by tax category - energy, transport, pollution and resource taxes) broken down by economic activities (tax payers) using the NACE classification for production activities plus households and non-residents. Eurostat with the European Commission's Directorate General for Taxation and Customs Union also produces annually an analysis of each tax listed in the national accounts of European countries including: - assigning an economic function to each tax; - attributing an environmental code to the environmental taxes (E for Energy, T for Transport, P for Pollution, RS for Resource). These function and environmental codes are reported by countries in their national tax list (NTL) and are validated by Eurostat. Efforts are made to ensure full consistency of the data on environmental taxes by economic activities and revenue data based on the national tax lists even if some discrepancies remain for some countries.

Definition of an environmental tax (Regulation (EU) N° 691/2011) An environmental tax is a tax whose tax base is a physical unit (or a proxy of a physical unit) of something that has a proven, specific negative impact on the environment, and which is identified in ESA2010 as a tax. Eurostat collects data on environmental tax revenue (by tax category - energy, transport, pollution and resource taxes) broken down by economic activities (tax payers) using the NACE classification for production activities plus households and non-residents. Eurostat with the European Commission's Directorate General for Taxation and Customs Union also produces annually an analysis of each tax listed in the national accounts of European countries including: - assigning an economic function to each tax; - attributing an environmental code to the environmental taxes (E for Energy, T for Transport, P for Pollution, RS for Resource). These function and environmental codes are reported by countries in their national tax list (NTL) and are validated by Eurostat. Efforts are made to ensure full consistency of the data on environmental taxes by economic activities and revenue data based on the national tax lists even if some discrepancies remain for some countries.

This dataset presents the data collected from OECD and partner economies on environmentally related tax revenue accounts with a breakdown by tax-base category and industrial activity. The data collection follows the OECD methodological guidelines for compiling Environmentally Related Tax Revenue (ERTR) accounts in line with the System of Environmental-Economic Accounting - Central Framework (SEEA-CF). The OECD ERTR accounts are consistent with the existing data collection by Eurostat. Nevertheless, in an effort to enhance the policy relevance of this SEEA module, the OECD approach goes slightly further and includes several additional revenue categories: Taxes levied on greenhouse gas (GHG) emissions are explicitly reported in two sub-categories: an energy related part (recorded as an energy tax) and a non-energy related part, such as certain GHG emissions related to landfills or agriculture (recorded as a pollution tax). Four "memo items" (i.e. information items that do not change the total) are included: (i) Certain land taxes; (ii) Taxes on oil and natural gas extraction; (iii) Taxes on the resource rent; (iv) Elevated value added taxes levied on environmentally related tax-bases. The dataset covers OECD member countries, accession candidates and selected partner economies since the year 1995. For EU countries, it includes the information on ERTR accounts reported to Eurostat.

Data cited at: tax justice network - https://fsi.taxjustice.net/en/introduction/fsi-results;  License term - https://fsi.taxjustice.net/en/introduction/copyright-license     Jurisdiction Note for Year 2020: Footnote 1: The territories marked in dark color are Overseas Territories (OTs) and Crown Dependencies (CDs) where the Queen is head of state; powers to appoint key government officials rest with the British Crown; laws must be approved in London; and the UK government holds various other powers (see here for more details: www.financialsecrecyindex.com/PDF/UnitedKingdom.pdf). Territories marked in light color are British Commonwealth territories which are not OTs or CDs but whose final court of appeal is the Judicial Committee of the Privy Council in London (see here for more details: http://www.taxjustice.net/cms/upload/pdf/Privy_Council_and_Secrecy_Scores.pdf). Footnote 6: For jurisdictions marked with 2, we provide special narrative reports exploring the history and politics of their offshore sectors. You can read and download these reports by clicking on the country name.

Text from source:Please note that this content is no longer being updated. The tax rate information on this page was last updated in January 2021 and the below historical tax rate data is available for reference only. For the latest information and insights on Global Tax rates, and what they may mean for your organization, please speak with your local KPMG Tax professional. Thank you.

This dataset provides a comprehensive view of government revenue, including detailed classifications of taxes, social contributions, grants receivable, and other revenue.

This dataset provides an overview of government’s cash flows, as summarized in the Statement of Sources and Uses of Cash, for those countries compiling GFS on a noncash basis (for example, an accrual basis) and are also including a cash flow statement.

Data cited at: ICTD/UNU-WIDER, ‘Government Revenue Dataset’, 2018, https://www.wider.unu.edu/project/government-revenue-dataset' ICTD Government Revenue Dataset, 2018 A major obstacle to cross-country research on the role of revenue and taxation in development has been the weakness of available data. Government Revenue Dataset (GRD), developed through the International Centre for Tax and Development (ICTD), is aimed at overcoming this obstacle. It meticulously combines data from several major international databases, as well as drawing on data compiled from all available International Monetary Fund (IMF) Article IV reports. It achieves marked improvements in data coverage and accuracy, including a standardized approach to revenue from natural resources, and holds the promise of significant improvement in the credibility and robustness of research in this area. Dataset contains Central, General and merged government revenue data reported as % of GDP.

This indicator is defined as the ratio between energy tax revenues and final energy consumption calculated for a calendar year. Energy tax revenues are measured in euro 2010 (deflated with the gross market produck implicit deflator) and the final energy consumption in TOE (tonnes of oil equivalent), therefore the ITR on energy is measured in EUR per TOE.  This is a Sustainable Development Indicator (SDI). It has been chosen for the assessment of the progress towards the objectives and targets of the EU Sustainable Development Strategy.  tsdcc360´s table: Eurobase > Tables by themes > Environment and energy > Energy > Energy Statistics Main indicators > Implicit tax rate on energy (tsdcc360)

The implicit tax rate on employed labour is defined as the sum of all direct and indirect taxes and employees' and employers' social contributions levied on employed labour income divided by the total compensation of employees working in the economic territory increased by taxes on wage bill and payroll. The ITR on labour is calculated for employed labour only (so excluding the tax burden falling on social transfers, including pensions). The implicit tax rate on labour should be seen as a summary measure that approximates an average effective tax burden on labour income in the economy. Source: Structures of the taxation systems in the European Union

This database presents the 2018 edition of OECD time-series indicators of implied R&D tax subsidy rates for OECD member countries and five non-member economies (Brazil, People's Republic of China, Romania, Russian Federation, and South Africa) over the period 2000-2018, drawing on data collected in the OECD-NESTI R&D tax incentive surveys from 2007 to 2018. The 2018 edition of RDTAXSUB contains time-series estimates that are based on headline tax credit and allowance rates, by firm size and profitability scenario. Due to limited historical data availability, the estimates are not adjusted for provisions that bound the tax benefits received by firms (e.g. ceilings, thresholds). They therefore provide an upper bound for the marginal tax subsidy implied by R&D tax relief measures across countries over time. These estimates should not be confused with separate contemporary cross-sectional OECD estimates of marginal tax subsidy rates (OECD, 2018) that compute adjusted (weighted) tax credit/allowance rates for a number of countries based on available information on the proportion of eligible R&D subject to different marginal levels of relief (see 2017).The tax subsidy rate is defined as 1 minus the B-index, a measure of the before-tax income needed by a “representative” firm to break even on USD 1 of R&D outlays (Warda, 2001). As tax component of the user cost of R&D, the B-Index is is directly linked to measures of effective marginal tax rates. Measures of tax subsidy rates such as those based on the B-index provide a convenient proxy for examining the implications of tax relief provisions. These provide a synthetic representation of the generosity of a tax system from the perspective of a generic or model type of firm for the marginal unit of R&D expenditure. To provide a more accurate representation of different scenarios, B-indices are calculated for “representative” firms according to whether they can claim tax benefits against their tax liability in the reporting period (OECD, 2013). When credits or allowances are fully refundable, the B-index of a firm in such a position is identical to the profit scenario. Carry-forwards are modelled as discounted options to claim incentives in the future, assuming a constant annual probability of returning to profit of 50% and a nominal discount rate of 10%. For general and country-specific notes on the time-series estimates of implied marginal tax subsidy rates on R&D expenditures (based on the B-index), see http://www.oecd.org/sti/rd-tax-stats-bindex-notes.pdf.

These data are part of a larger database, hosted on a different website, which includes both quantitative and qualitative data, as well as graphs.

Detailed tax and social contribution receipts by type of tax or social contribution and by sub-sector of general government, notified by national authorities in line with Table 0900 of the ESA 95 transmission programme. Data are presented in euro/ECU, national currency units and as percentages of GDP. Geographic coverage: EU and euro area, Norway, Switzerland and Iceland. Main sources of data: National authorities.

IPAW = Income as a percentage of the average wage This data is updated after the finalisation of the Taxing Wages publication for the corresponding year. This table reports marginal personal income tax and social security contribution rates for a single person without dependent, at various multiples (67%, 100%, 133%, 167%) of the AW/APW. The average wage (AW) by country and year can be found within the Taxing Wages comparative tables dataset, under the indicator heading: Total gross earnings before taxes (national currency). The AW is based on a single person at 100% of average earnings, no child. The results, derived from the OECD Taxing Wages framework (elaborated in the annual publication Taxing Wages), use tax rates applicable to the tax year. The results take into account basic/standard income tax allowances and tax credits and include family cash transfers (see Taxing Wages). The marginal rates are expressed as a percentage of gross wage earnings, with the exception of the Total tax wedge which is expressed as a percentage of gross labour costs (gross wages + employer SSC). The sub-central personal tax rates used in this table correspond to those used in Taxing Wages. The figures may differ from those published in Taxing Wages where updated information is available, such as revised AW/APW data. Further explanatory notes may be found in the Explanatory Annex.

It provides a faithful image, to the greatest extent possible, of the aggregates and balances of the general government sector Data are also available, for most countries, for the sub-sectors of general government.

This database provides a set of indicators that reflect the level and structure of central government support for business R&D; in form of R&D; tax incentives and direct funding across OECD member countries and ten non-member economies (Argentina, Brazil, Bulgaria, Croatia, Cyprus, People's Republic of China, Romania, Russian Federation, and South Africa). This includes time-series indicators of tax expenditures for R&D;, based on the latest 2017 OECD data collection on tax incentive support for R&D; expenditures that was completed in July 2017. These estimates of the cost of R&D; tax relief have been combined with data on direct R&D; funding, as compiled by National Statistical Offices based on reports from firms, in order to provide a more complete picture of government efforts to promote business R&D.; The latest indicators and information on R&D; tax incentives also feature on the dedicated OECD website Measuring R&D; tax incentives.Tax expenditures are deviations from a benchmark tax system (OECD, 2010) and countries use different national benchmarks. Available estimates typically reflect the sum of foregone tax revenues – on an accruals basis – and refunds where applicable, with no or minimal adjustments for behavior effects. Some countries only report claims realised in a given year (cash basis), while others report losses to government on an accrual basis, excluding claims referring to earlier periods and including claims for current R&D; to be used in the future. For general and country-specific notes on the estimates of government tax relief for R&D; expenditures (GTARD), see http://www.oecd.org/sti/rd-tax-stats-gtard-notes.pdfThe sources for the other indicators (direct funding of BERD, BERD and GDP) include the OECD databases on Main Science and Technology Indicators and Eurostat R&D; statistics.

Data on government sector receipts, and on taxes in particular, are basic inputs to most structural economic descriptions and economic analyses and are increasingly used in international comparisons. This annual database presents a unique set of detailed and internationally comparable tax data in a common format for all OECD countries.

18.1. Source data

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CGTRT = Central govt. tax rates and thresholds This table provides detailed information on sub-central income tax systems with progressive rate structures, based on the representative case. - The data (e.g., allowance, tax credit) apply to wage income of a single person without dependents. - The rates are expressed as a percentage of taxable income. Further explanatory notes may be found in the Explanatory Annex. The information shown in the columns 'Level of government' and 'Tax base' corresponds to the same columns in Table I.2.

Statutory corporate income tax rate - This table shows 'basic' (non-targeted) central, sub-central and combined (statutory) corporate income tax rates. Where a progressive (as opposed to flat) rate structure applies, the top marginal rate is shown.

Targeted statutory corporate income tax rate - This table reports central, sub-central and combined corporate income tax rates typically applying for or targeted at 'small (incorporated) business', where such 'targeting' is on the basis of size alone (e.g. number of employees, amount of assets, turnover or taxable income) and not on the basis of expenditures or other targeting criteria. A 'small business corporate tax rate' may be a special statutory corporate tax rate applicable to (all or part of) the taxable income of qualifying 'small' firms (e.g., meeting a turnover, income, or asset test), or an effective corporate tax rate below the basic statutory corporate rate provided through a tax deduction or credit for 'small' firms determined as a percentage of qualifying taxable income (e.g., up to a given threshold). If corporate income is taxed at progressive rates, the rate typically applying for 'small' firms should be reported. Where the central government, or sub-central government, or both, have a lower small business tax rate, the applicable central and sub-central rates are both shown (to enable a combined rate calculation). Thus, for example, where only the sub-central government has a small business rate, the basic central corporate income tax rate is shown in order to compute the combined central and sub-central tax rate on small business (a cross-check with Table II.3 shows whether the central or sub-central rate is basic or not).

SCCIT = Sub-Central Corporate Income Tax   Sub-central corporate income tax rates - This table reports information on sub-central government (statutory) corporate income tax rates in the representative case which is used in Table II.1, which can be based on a representative city or an average of sub-central rates. Countries are grouped according to the determination of the sub-central tax base (the representative rate). Minimum and maximum sub-central rates across states/localities are also reported.

Overall statutory tax rates on dividend income- reports effective statutory tax rates on distributions of domestic source income to a resident individual shareholder, taking account of corporate income tax, personal income tax and any type of integration or relief to reduce the effects of double taxation. PIT: Personal Income Tax CIT: Corporate Income Tax CL - Classical system (dividend income is taxed at the shareholder level in the same way as other types of capital income (e.g. interest income) MCL - Modified classical system (dividend income taxed at preferantial rates (e.g. compared to interest income) at the shareholder level. FI - Full imputation (dividend tax credit at shareholder level for underlying corporate profits tax) PI - Partial imputation (dividend tax credit at shareholder level for part of underlying corporate profits tax) PIN - Partial inclusion (a part of received dividends is included as taxable income at the shareholder level) SR - Split rate system (distributed dividends are taxed at higher rates than retained earnings at the corporate level) NST - No shareholder taxation of dividends (no other tax than the tax on corporate profits) CD - Corporate deduction (corporate level deduction, fully or partly, in respect of dividend paid) OTH - Other types of systems

The term "tax autonomy" captures the freedom sub-central governments (SCG) have over their own taxes.   Tax autonomy data for 2002, 2005 and 2008 is classified into 11 categories and sub-categories and ranges from full taxing power to no taxing power at all. The classification is shown below :   a.1 - The recipient SCG can set the tax rate and any tax reliefs without needing to consult a higher level government. a.2 - The recipient SCG can set the rate and any reliefs after consulting a higher level government. b.1 - The recipient SCG can set the tax rate, and a higher level government does not set upper or lower limits on the rate chosen. b.2 - The recipient SCG can set the tax rate, and a higher level government does set upper and/or lower limits on the rate chosen. c - The recipient SCG can set some tax reliefs (tax allowances and/or tax credits) but not tax rates. d.1 - There is a tax-sharing arrangement in which the SCGs determine the revenue split. d.2 - There is a tax-sharing arrangement in which the revenue split can be changed only with the consent of SCGs. d.3 - There is a tax-sharing arrangement in which the revenue split can be changed unilaterally by a higher level government, but less frequently than once a year. d.4 - There is a tax-sharing arrangement in which the revenue split is determined annually by a higher level government. e - Other cases in which the central government sets the rate and base of the SCG tax. f - None of the above categories a, b, c, d or e applies.   In the data for 1995, there is only one category under each of the headings a and b as follows: a - The recipient SCG can set the tax rate and any tax reliefs. b - The recipient SCG can set the tax rate.

This data is updated after the finalisation of the Taxing Wages publication for the corresponding year. This table reports average personal income tax and social security contribution rates for a single person without dependent, at various multiples (67%, 100%, 133%, 167%) of the AW/APW. The average wage (AW) by country and year can be found within the Taxing Wages comparative tables dataset, under the indicator heading: Total gross earnings before taxes (national currency). The AW is based on a single person at 100% of average earnings, no child. The results, derived from the OECD Taxing Wages framework (elaborated in the annual publication Taxing Wages), use tax rates applicable to the tax year. The results take into account basic/standard income tax allowances and tax credits and include family cash transfers (see Taxing Wages). The marginal rates are expressed as a percentage of gross wage earnings, with the exception of the Total tax wedge which is expressed as a percentage of gross labour costs (gross wages + employer SSC). The sub-central personal tax rates used in this table correspond to those used in Taxing Wages. The figures may differ from those published in Taxing Wages where updated information is available, such as revised AW/APW data. Further explanatory notes may be found in the Explanatory Annex.

Information on net earnings (net pay taken home, in absolute figures) and related tax-benefit rates (in %) complements gross‑earnings data with respect to disposable earnings. The transition from gross to net earnings requires the deduction of income taxes and employee's social security contributions from the gross amounts and the addition of family allowances, if appropriate. The amount of these components and therefore the ratio of net to gross earnings depend on the individual situation. A number of different family situations are considered, all referring to an average worker. Differences exist with respect to marital status (single vs. married), number of workers (only in the case of couples), number of dependent children, and level of gross earnings, expressed as a percentage of the gross earnings of an average worker (AW).  All the data are based on a widely acknowledged model developed by the OECD, which figures are obtained from national sources. The collection contains, for selected situations, data for the following variables and indicators : a)      gross and net earnings, including the transition components "income taxes", "employee's social security contributions" and "family allowances", if appropriate; b)      tax rate, defined as the income tax on gross wage earnings plus the employee's social security contributions less universal cash benefits, expressed as a percentage of gross wage earnings; c)      tax wedge on labour costs, defined as income tax on gross wage earnings plus the employee's and the employer's social security contributions, expressed as a percentage of the total labour costs of the earner. The total labour costs of the earner are defined as his/her gross earnings plus the employer's social security contributions plus payroll taxes (where applicable). The tax wedge on labour costs structural indicator is available only for single persons without children earning 67% of the AW. d)      unemployment trap, measuring the percentage of gross earnings which is taxed away through higher tax and social security contributions and the withdrawal of unemployment, and other, benefits when an unemployed person returns to employment. This structural indicator is available only for single persons without children earning 67% of the AW when in work. e)      low wage trap, measuring the percentage of gross earnings which is taxed away through the combined effects of income taxes, social security contributions and any withdrawal of benefits when gross earnings increase from 33% to 67% of AW. This structural indicator is available for single persons without children and one-earner couples with two children.

Information on net earnings (net pay taken home, in absolute figures) and related tax-benefit rates (in %) complements gross‑earnings data with respect to disposable earnings. The transition from gross to net earnings requires the deduction of income taxes and employee's social security contributions from the gross amounts and the addition of family allowances, if appropriate. The amount of these components and therefore the ratio of net to gross earnings depend on the individual situation. A number of different family situations are considered, all referring to an average worker. Differences exist with respect to marital status (single vs. married), number of workers (only in the case of couples), number of dependent children, and level of gross earnings, expressed as a percentage of the gross earnings of an average worker (AW).  All the data are based on a widely acknowledged model developed by the OECD, which figures are obtained from national sources. The collection contains, for selected situations, data for the following variables and indicators : a)      gross and net earnings, including the transition components "income taxes", "employee's social security contributions" and "family allowances", if appropriate; b)      tax rate, defined as the income tax on gross wage earnings plus the employee's social security contributions less universal cash benefits, expressed as a percentage of gross wage earnings; c)      tax wedge on labour costs, defined as income tax on gross wage earnings plus the employee's and the employer's social security contributions, expressed as a percentage of the total labour costs of the earner. The total labour costs of the earner are defined as his/her gross earnings plus the employer's social security contributions plus payroll taxes (where applicable). The tax wedge on labour costs structural indicator is available only for single persons without children earning 67% of the AW. d)      unemployment trap, measuring the percentage of gross earnings which is taxed away through higher tax and social security contributions and the withdrawal of unemployment, and other, benefits when an unemployed person returns to employment. This structural indicator is available only for single persons without children earning 67% of the AW when in work. e)      low wage trap, measuring the percentage of gross earnings which is taxed away through the combined effects of income taxes, social security contributions and any withdrawal of benefits when gross earnings increase from 33% to 67% of AW. This structural indicator is available for single persons without children and one-earner couples with two children.

Information on net earnings (net pay taken home, in absolute figures) and related tax-benefit rates (in %) complements gross‑earnings data with respect to disposable earnings. The transition from gross to net earnings requires the deduction of income taxes and employee's social security contributions from the gross amounts and the addition of family allowances, if appropriate. The amount of these components and therefore the ratio of net to gross earnings depend on the individual situation. A number of different family situations are considered, all referring to an average worker. Differences exist with respect to marital status (single vs. married), number of workers (only in the case of couples), number of dependent children, and level of gross earnings, expressed as a percentage of the gross earnings of an average worker (AW).  All the data are based on a widely acknowledged model developed by the OECD, which figures are obtained from national sources. The collection contains, for selected situations, data for the following variables and indicators : a)      gross and net earnings, including the transition components "income taxes", "employee's social security contributions" and "family allowances", if appropriate; b)      tax rate, defined as the income tax on gross wage earnings plus the employee's social security contributions less universal cash benefits, expressed as a percentage of gross wage earnings; c)      tax wedge on labour costs, defined as income tax on gross wage earnings plus the employee's and the employer's social security contributions, expressed as a percentage of the total labour costs of the earner. The total labour costs of the earner are defined as his/her gross earnings plus the employer's social security contributions plus payroll taxes (where applicable). The tax wedge on labour costs structural indicator is available only for single persons without children earning 67% of the AW. d)      unemployment trap, measuring the percentage of gross earnings which is taxed away through higher tax and social security contributions and the withdrawal of unemployment, and other, benefits when an unemployed person returns to employment. This structural indicator is available only for single persons without children earning 67% of the AW when in work. e)      low wage trap, measuring the percentage of gross earnings which is taxed away through the combined effects of income taxes, social security contributions and any withdrawal of benefits when gross earnings increase from 33% to 67% of AW. This structural indicator is available for single persons without children and one-earner couples with two children.

The 'unemployment trap' measures what percentage of the gross earnings (after moving into employment) is 'taxed away' by the combined effects of the withdrawal of benefits and higher tax and social security contributions.

Information on net earnings (net pay taken home, in absolute figures) and related tax-benefit rates (in %) complements gross‑earnings data with respect to disposable earnings. The transition from gross to net earnings requires the deduction of income taxes and employee's social security contributions from the gross amounts and the addition of family allowances, if appropriate. The amount of these components and therefore the ratio of net to gross earnings depend on the individual situation. A number of different family situations are considered, all referring to an average worker. Differences exist with respect to marital status (single vs. married), number of workers (only in the case of couples), number of dependent children, and level of gross earnings, expressed as a percentage of the gross earnings of an average worker (AW).  All the data are based on a widely acknowledged model developed by the OECD, which figures are obtained from national sources. The collection contains, for selected situations, data for the following variables and indicators : a)      gross and net earnings, including the transition components "income taxes", "employee's social security contributions" and "family allowances", if appropriate; b)      tax rate, defined as the income tax on gross wage earnings plus the employee's social security contributions less universal cash benefits, expressed as a percentage of gross wage earnings; c)      tax wedge on labour costs, defined as income tax on gross wage earnings plus the employee's and the employer's social security contributions, expressed as a percentage of the total labour costs of the earner. The total labour costs of the earner are defined as his/her gross earnings plus the employer's social security contributions plus payroll taxes (where applicable). The tax wedge on labour costs structural indicator is available only for single persons without children earning 67% of the AW. d)      unemployment trap, measuring the percentage of gross earnings which is taxed away through higher tax and social security contributions and the withdrawal of unemployment, and other, benefits when an unemployed person returns to employment. This structural indicator is available only for single persons without children earning 67% of the AW when in work. e)      low wage trap, measuring the percentage of gross earnings which is taxed away through the combined effects of income taxes, social security contributions and any withdrawal of benefits when gross earnings increase from 33% to 67% of AW. This structural indicator is available for single persons without children and one-earner couples with two children.

The simple approach of comparing the tax/benefit position of example households avoids many of the conceptual and definitional problems involved in more complex international comparisons of tax burdens and transfer programmes. However, a drawback of this methodology is that the earnings of an average worker will usually occupy a different position in the overall income distribution in different economies, although the earnings relate to workers in similar jobs in various OECD Member countries. Because of the limitations on the taxes and benefits covered in the Report, the data cannot be taken as an indication of the overall impact of the government sector on the welfare of taxpayers and their families. Complete coverage would require studies of the impact of indirect taxes, the treatment of non-wage labour income and other income components under personal income taxes and the effect of other tax allowances and cash benefits. Complete coverage would also require that consideration be given to the effect on welfare of services provided by the state, either free or below cost, and the incidence of corporate and other direct taxes on earnings and prices. Such a broad coverage is not possible in an international comparison of all OECD countries. The differences between the results shown here and those of a full study of the overall impact on employees of government interventions in the economy would vary from one country to another. They would depend on the relative shares of different kinds of taxes in government revenues and on the scope and nature of government social expenditures. The Report shows only the formal incidence of taxes on employees and employers. The final, economic incidence of taxes may be quite different, because the tax burden may be shifted from employers onto employees and vice versa by market adjustments to gross wages. The income left at the disposal of a taxpayer may represent different standards of living in various countries because the range of goods and services on which the income is spent and their relative prices differ as between countries. In those countries where the general government sector provides a wide range of goods and services (generous basic old age pension, free health services, public housing, university education, etcetera), the taxpayer may be left with less cash income but may enjoy the same living standards as a taxpayer receiving a higher cash income but living in a country where there are fewer publicly provided goods and services.

Taxes on production and imports (ESA 2010 code D.2) consist of compulsory, unrequited payments, in cash or in kind which are levied by general government, or by the institutions of the European Union, in respect of the production and importation of goods and services, the employment of labour, the ownership or use of land, buildings or other assets used in production. Such taxes are payable irrespective of profits made. In ESA 2010, taxes on production and imports comprise taxes on products and other taxes on production.

Taxes and subsidies on products are current unrequited payments to or from general government or the Institutions of the European Union that are payable per unit of some good or service produced or transacted. The tax or subsidy may be a specific amount of money per unit of quantity of a good or service, or it may be calculated ad valorem as a specified percentage of the price per unit or value of the goods and services produced or transacted.

This current Taxing Wages model has evolved from 2 earlier versions. The latest version is based on calculations for the Average Worker (AW) in the private sector (see glossary term), and the results are shown for 8 household types covering one- and two-earner families of varying size and different fractions of average gross wage earnings. There are 14 separate tax burden measures that describe the tax and benefit position of these families. This approach was first followed in the 2005-2006 Taxing Wages publication, which also applied these assumptions to calculate tax burden measures as of 2000. These assumptions have been applied since then in the more recent Taxing Wages publications and website databases. The first version of the Taxing Wages model (historical model A) was based on a more narrow definition of the average worker: the Average Production Worker (APW) solely from the manufacturing sector (see glossary term). It included only two of the current 8 family types, and the results are shown for only 3 of the existing 14 tax burden measures. This model was applied to data for years 1979-2004. The second version (historical model B) continued to use the Average Production Worker (APW) basis for its calculations, but was expanded to cover the full 8 family types that are currently used, and increased the number of tax burden measures to 12 of the 14 currently used. This model was applied to data for years 1997-2004.

This table shows the top statutory personal income tax rate and top marginal tax rates for employees at the earnings threshold where the top statutory PIT rate first applies.

The IMF’s World Revenue Longitudinal Data set (WoRLD) is a compilation of government tax and non-tax revenues from the IMF’s Government Finance Statistics and World Economic Outlook, and drawing on the OECD Revenue Statistics and Revenue Statistics in Latin American and the Caribbean.

The dataset illustrates the inter-country variations in the average price of one barrel of oil across G7 countries as well as the OECD average during 1984-2019.