Which Country Has The Highest Income Tax?

Income tax is a tax charged by the government on the income earned by individuals and entities in a financial year. Income tax plays a vital role in funding public services, infrastructure, education, healthcare, defence, security, and various welfare services. It plays a major role in how a nation finances its economy and meets all needs for nation building.

Income is divided into different tax brackets. The tax rate applies to the income within each bracket. Taxes are levied in different forms, including income tax, sales tax, property tax, capital gains tax, VAT, inheritance tax, remittance tax, and more. Each country has different tax rates and regulations. 

A financial year, also known as a fiscal year, is a 12-month period used for financial reporting, budgeting, and accounting purposes. While many countries align their financial year with the calendar year (January 1 to December 31), some countries follow different financial years, such as April to March, July to June, or October to September.

People with higher incomes contribute a bigger percentage of their incomes towards taxes. This is because most tax systems are structured as progressive tax systems, where the tax increases as the income increases.

That is a brief overview of income tax. In this article, we are particularly looking into which country has the highest tax rate in the world. Let us find out.

Which country has the highest income tax? 

Ivory Coast has the highest income tax rate in the world, according to Data Panda's 2025 survey. The income tax rate for individuals earning a high income is as high as 60 percent. 

The personal income tax in Ivory Coast ranges from 10 to 60 percent, the corporate tax is at 25 percent, and the value-added tax (VAT) is at 18 percent.

Ivory Coast (also known as Côte d'Ivoire) is a West African country. The country is enriched with a diverse geography, a rich history, and a market-based economy that is heavily reliant on agriculture, particularly cocoa and coffee. It is also a major producer of timber and wood products.

Ivory Coast has a population estimated at 31.5 million in 2024, as per the World Bank data. It was a French colony before gaining independence in 1960. It experienced economic prosperity in the 1960s and 1970s but faced an economic crisis in the 1980s, followed by a period of political and social turmoil. 

List of 10 countries with highest personal income tax in 2025

Let us also have a quick look at the top 10 countries with the highest income taxes in 2025.

1. Ivory Coast - 60 percent  
2. Finland – 56.95 percent
3. Japan – 55.97 percent
4. Denmark - 55.9 percent
5. Austria – 55 percent
6. Belgium – 53.7 percent
7. Sweden – 50 percent
8. Netherlands - 49 percent
9. France - 45 percent
10. Germany - 45 percent

Surprisingly, people in these countries pay more taxes than Indians. India's income tax rate places it lower on the list. India's highest personal income tax rate is currently at 39 percent. This is higher than that of the US but lower than that of the UK.

Also read: Top 10 Countries With Highest Oil Consumption In 2025