In the countries of the Organisation for Economic Co-operation and Development (OECD), the tax burden on salaries has reached its highest level in the last decade. In 2025, the average tax pressure for a single worker without children amounted to 35.1% of the total employer costs for their employment. This is the highest level since 2016.
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Leaders in Labor Tax Rates
According to recent data, the so-called tax wedge, which is the difference between the employer’s costs and the actual amount received by the employee “in hand”, has increased in 24 out of 38 OECD countries compared to the previous year. This trend is observed, in particular, in Germany, Israel, Estonia, and the United Kingdom.
The highest tax rates on labor are traditionally recorded in European countries. For instance, in Belgium, the tax burden is 52.5%, in Germany it is 49.2%, and in France it is 47.2% for single workers without children.
How the Tax Burden Has Changed for Families
Experts note that for households with children, the tax pressure is increasing even more dynamically. For a family with two children where only one parent works, the average figure across the OECD has risen to 26.2%. If both parents are working, this figure has reached 32%.
At the same time, in 11 OECD countries, there is a decrease in the tax burden on labor in 2025. Among these countries are Italy, the USA, Ireland, and Australia. Analysts emphasize that since 2000, the tax systems of OECD member countries have become more progressive. This means that households with higher incomes pay significantly higher taxes.
“The increase in fiscal pressure is linked to several factors, including: an aging population, rising defense expenditures, the need to cover budget deficits, and geopolitical instability in the Middle East, which hinders economic development and contributes to rising prices”.
Experts believe that these circumstances are forcing the governments of OECD countries to raise taxes to fund social programs and ensure the stability of public budgets.