4. Denmark

Income Tax In The Highest Slab: 55.56 Percent

Overall Rank: 3

In 2008, Denmark had raised its income tax rates with 62.3 percent, but recently in 2013 it reduced the tax rates to 55.56 percent.

The country levies up to 42 percent of tax on capital gains. Real estate tax and property tax are other forms that the country charges. Generally it ranges between 1 percent and 3 percent.

However, there are special provisions for people who belong to the Danish church with the lowest income tax rates of 0.4 percent to 1.5 percent.

5. The Netherlands

Income Tax In The Highest Slab: 52 Percent

Overall Rank: 4

Netherlands which is also called as Holland occupies the fifth position among the top 10 countries with highest income tax. The country has reduced the tax rates to 52 percent, which was previously higher than the average rate of 45.7 percent in Western Europe.

The government of Netherlands have made liable for the citizens to pay annual property tax of between $470 and $800.

Moreover, the country also levies inheritance tax between 10 percent and 40 percent along with the capital gains tax of 25 percent.

For some time now, Netherlands in facing extreme recession, due to this, the country decided to stop all the taxes that were levied for civil servants. The decision is taken with the clear intension of saving $3 billion by the end of 2013.

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