The United States ranks 18th overall on the 2024 International Tax Competitiveness Index, three spots higher than in 2023. How does the United States raise tax revenue? Explore the latest data regarding corporate taxes, individual taxes, consumption taxes, property taxes, and international taxes in United States below.
Who has the lowest tax rates in the world? Some of the countries with the lowest tax rates in the world include Malta, Cyprus, Andorra, Montenegro, and Singapore. In addition to having no income tax, individuals in Antigua and Barbuda are also exempt from taxes on wealth, capital gains, and inheritance.
Canada ranked 20th¹ out of 38 OECD countries in terms of the tax-to-GDP ratio in 2023. In 2023, Canada had a tax-to- GDP ratio of 34.8% compared with the OECD average of 33.9%. In 2022, Canada was ranked 22nd out of the 38 OECD countries in terms of the tax-to-GDP ratio. 1.
While many countries have high income tax rates, Ivory Coast currently holds the record for the highest top marginal income tax rate in the world, at a staggering 60%.
In 2021, taxes at all levels of US government represented 27 percent of gross domestic product (GDP), compared with a weighted average of 34 percent for the other 37 member countries of the Organisation for Economic Co-operation and Development (OECD).
Canadians generally pay higher taxes than Americans, primarily due to Canada's extensive social services, including universal healthcare. Research indicates that these taxes may also increase due to the current government's program spending.
Countries such as Belgium, Finland, Portugal, and Slovenia have the highest income tax rates for high-income individuals, with rates reaching at least 57%. In contrast, the United States ranks 22nd with a combined all-in rate of 46%.
The federal income tax has seven tax rates in 2025: 10 percent, 12 percent, 22 percent, 24 percent, 32 percent, 35 percent, and 37 percent. The top marginal income tax rate of 37 percent will hit taxpayers with taxable income.
Which countries don't have taxes? At present, there are 14 countries without income taxes. These include Antigua and the neighboring Barbuda, Saint Kitts, the United Arab Emirates, Vanuatu, Brunei, Bahrain, the Bahamas, Bermuda, the Cayman Islands, Monaco, Kuwait, Qatar, Somalia, and Western Sahara.
Most of the government's federal income tax revenue comes from the nation's top income earners. In 2021, the top 5% of earners — people with incomes $252,840 and above — collectively paid over $1.4 trillion in income taxes, or about 66% of the national total.
Even though personal income tax rates differ from one country to another, they can also vary depending on the tax brackets. In general, taxes in Europe vs US tend to be higher.
Federal Revenue Overview
The majority of this revenue is used to pay for government activities (employee salaries, infrastructure maintenance), as well as to pay for goods and services provided to United States citizens and businesses. In FY 2024, the federal government spent $6.75 trillion.
Differences between the UK and US tax systems
The tax systems in the UK and the US differ significantly. For instance, while the UK has a progressive tax system with rates ranging from 20% to 45%, the US federal tax rates vary from 10% to 37%.
Who is the highest individual taxpayer in the world? As per FY 2021 reports, Jeff Bezos was the highest individual taxpayer in the world by, paying over USD 2.4 billion in taxes.
The highest personal income tax rates in 2021-23 were found in Ivory Coast (60%), Finland (56.95%), and Denmark (56.00%). Bhutan has the highest sales tax at 50%, followed by Hungary (27%), with Croatia, Denmark, Norway, and Sweden tied at 25%.
It doesn't matter how you earn your money, whether with stocks, through rental income or even through trading crypto currencies, there will be 0% tax for you.. All private income in the UAE is 100% tax-free, provided, that you hold a UAE Residence Visa and no longer have an official place of residence outside the UAE.
States without income tax
The nine states that do not levy a state income tax are Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington and Wyoming. However, New Hampshire taxes dividends and interest, and Washington taxes some capital gains.
Canada boasts clean and safe cities along with free healthcare and world-class education. It also has beautiful scenery, cultural diversity and friendly citizens. Those leaving the U.S. may miss the consistently warmer weather in the southern U.S., lower taxes and cheaper living expenses.
According to the latest IRS data, the top 1% of earners paid 40.4% of all federal income taxes in 2022. This underscores the extent to which the burden of the income tax system falls on taxpayers from the highest income groups.
Among the countries with the lowest tax rates in the world are Malta, Cyprus, Andorra, Montenegro and Singapore. Aside from zero income tax, in Antigua and Barbuda, individuals are also free from paying taxes on wealth, capital gains, and inheritance.