Europeans generally pay significantly higher taxes than Americans, with the average single worker in the EU facing a tax rate around 47%, compared to approximately 32% in the U.S.. While European nations feature high income taxes and value-added taxes (VAT) to fund extensive social services, the U.S. typically has a lower overall tax burden as a percentage of GDP.
France and Denmark lead the pack with the highest Euro tax rates. In contrast, corporate and personal income taxes are far higher in the US than in low-tax countries in Europe like Poland, Bulgaria, Romania, Ukraine, and Hungary. So, Eastern European tax rates compared to the US are more favorable.
The United States ranked 32nd¹ out of 38 OECD countries in terms of the tax-to-GDP ratio in 2023. In 2023, the United States had a tax-to-GDP ratio of 25.2% compared with the OECD average of 33.9%. In 2022, the United States was ranked 31st out of the 38 OECD countries in terms of the tax-to-GDP ratio.
For example, white Americans are 83 percent of total taxpayers, and the percentage of zero-tax filers who are white is 79 percent. African Americans are roughly 13 percent of total taxpayers and 17 percent of zero-tax filers. Asian Americans comprise 3.6 percent of total taxpayers and 3.4 percent of zero-tax filers.
Almost all the countries in Europe have a universal healthcare system. There are people who call it a “free healthcare” system but it is actually not free. Each nation has its own variation; however, a common feature is that everyone has to pay for healthcare as a society.
The United States is the world's preeminent tax haven. Tax havens are defined as allowing secrecy and having low or zero tax rates; for nonresident aliens, the United States offers both.
In 2022, the top 5% of earners — people with incomes $261,591 and above — collectively paid over $1.3 trillion in income taxes, or about 61% of the national total. If you include the top 10% — everyone who made at least $178,611 — that figure rises to $1.5 trillion, or 72% of the total.
Taxes are generally higher in Germany than in the U.S., especially for average earners, with Germany having higher overall tax burdens, steeper progressive rates, and significant social security contributions funding extensive social programs, while the U.S. has lower overall tax revenue as a percentage of GDP and varies significantly by state. The U.S. relies more on consumption taxes, while Germany has higher labor and capital income taxes and a significant VAT.
The country that has the highest taxes is the Ivory Coast (60%), according to statistics platform Data Panda's 2025 survey.
The cheapest countries in the world are Pakistan, Egypt, and Bhutan. To live comfortably in one of these states, a person needs under $400 per month. These countries, however, are unconventional choices for expats and digital nomads because of their low levels of safety and quality of life.
Key Highlights. New York City's Manhattan borough tops the list as the most expensive city in the United States, with a cost of living more than double the national average. Cities in New York and California, including San Francisco and Los Angeles, dominate the rankings of expensive cities.
The United States is the world's richest country by a wide margin. It's a global hub for finance, tech, energy, and entertainment. From Silicon Valley to Wall Street, American firms shape worldwide trends. The country benefits from vast natural resources, advanced infrastructure, and a culture of innovation.
Though they trail Asians in both the health and financial security components, Caucasians are still the happiest racial group, with a score of 72%. However, this score is down from its high in 2021, when Caucasians were 2 points happier. African-Americans are more financially secure than in 2021.
The 'Quality of Life' ranking of US News offers the following top 10 countries for quality of life:
Native Americans (American Indians/Alaska Natives) consistently experience the highest poverty rates in the U.S., followed by Black or African Americans, with both groups having significantly higher percentages living below the poverty line compared to white or Asian populations, though precise figures vary slightly by year and data source.
The pyramid shows that: half of the world's net wealth belongs to the top 1%, top 10% of adults hold 85%, while the bottom 90% hold the remaining 15% of the world's total wealth, top 30% of adults hold 97% of the total wealth.