Comparison of all income tax rates in Europe – where does the UK fit? | Personal Finances | Finance
While the announcement of the UK tax hike has angered the working population, it turns out that the British worker is not one of the biggest taxpayers in Europe, a number of other countries paying higher rates. While income tax has not been increased by the Chancellor despite the coronavirus crisis, national insurance has been increased by 1.25 percentage points from April 2022.
Income tax is the tax you pay on your income, but UK taxpayers receive a non-taxable personal income allowance, set at £ 12,570 for that year.
Income tax is classified into three brackets in the UK: base rate, higher rate and additional rate.
Those earning £ 12,571 to £ 50,270 pay an income tax rate of 20%, while those earning £ 50,271 to £ 150,000 pay 40%.
Those who benefit from the additional rate, who earn more than £ 150.00 per year, pay a tax rate of 45% on their income.
READ MORE: National pensioners’ insurance set to rise and rise
Some countries pay considerably less than the UK and other large economies like Germany.
In the Czech Republic, the maximum rate of personal income tax is only 15%, as are Hungarians.
However, in the Czech Republic and Hungary this applies to all workers, regardless of their salary, as it is a flat tax rate.
Likewise, Estonians only have to pay 20%, which is around 25 percentage points less than the British.
But you only need to earn € 6,097 to pay the proportional flat rate tax rate in this northern European country.
The middle ranks include Slovakia, which has a personal income rate of 25 percent, and Poland, which has a top rate of 32 percent.