10 Countries with Highest Income Tax Rates

2. Finland

Highest income tax rate: 49.2 percent

In Finland the income level of each person is equal to other western economies like Germany, France and the United Kingdom.

To beat the effects of inflation, Finland government has been reducing the tax rate which was up to 53.5 percent in 2004 to 49.2 percent.

Working officials will have to pay an additional amount towards social security tax like unemployment and pension premiums.

There are also provisions like if anyone is residing in the church, they will have to pay 1 to 2 percent of tax.  Apart from this there are municipal taxes which vary between 16.25 percent to 21.5 percent.

3. United Kingdom

Highest income tax rate: 50 percent

United Kingdom is a sovereign state which has increased the tax up to 50 percent in 2010. But in April 2013, the government decided to cut down on the tax rates to 45 percent; which is only applicable to individuals with high incomes.

Economists say that people are paying 50 percent of tax, over this they will have to pay some kind of personal income tax, which will result in paying up to 60 percent as marginal tax rates.

Apart from this, workers will have to pay their social security tax of 12 percent. U.K. capital gains tax that varies from 18 percent to 28 percent.

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