10 Countries with Highest Income Tax Rates
8. Denmark
Highest income tax rate: 55.4 percent
Denmark’s top marginal tax rate which was 62.3 percent in 2008 has been reduced to 55.4 percent in 2013 which can boost the economy.
The country’s capital gains are generally taxed between 28 percent and 42 percent. Individuals who belong to the Danish church are liable to pay a tax of 0.4 percent to 1.5 percent. Other than these, there are taxes which include real estate tax between 1 percent and 3 percent of the property’s value. But from a decade Denmark has decreased the tax on social security.
9. Sweden
Highest income tax rate: 56.6 percent
Sweden is one of European nation to make it among the top 10 countries with highest income tax rates. It also tops neighboring Scandinavian countries, which all have the tax rates of 48 percent.
Sweden’s marginal top tax rate kicks in at $81,000, workers pay social security tax of 7 percent. Other notable taxes include a municipal property tax of $960 and 30 percent tax on the income.
10. Aruba
Highest income tax rate: 58.95 percent
Aruba has the highest income tax rate in the world. In 2007, the tax rate was 60 percent. If you are a single tax payer you will have to pay 58.95 percent of tax compared to a married person who will pay 55.85 percent. Other notable taxes include a capital gains tax of 25 percent, along with health, pension and accident insurance premiums.
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