What is the global average income tax rate?

The global average top marginal personal income tax rate is approximately 31.2%.

Which countries have zero income tax?

Several countries have no personal income tax, including UAE, Saudi Arabia, Qatar, Bahrain, and the Cayman Islands.

Which country has the highest income tax?

Scandinavian countries have the highest top marginal rates, with Denmark at ~55.9% and Sweden at ~52.3%.

Global Average Income Tax Rate

Last updated: January 28, 2026

31.2%

The global average top marginal income tax rate is approximately 31.2%. Rates range from 0% in UAE and Saudi Arabia to over 55% in Scandinavian countries. The trend has been toward lower rates since the 1980s.

Historical Trend

Source: Tax Foundation

Why This Average Exists

Income tax rates affect take-home pay, talent migration, and government revenue. They are a key factor in personal financial planning and comparative economics.

Factors That Affect Global Average Income Tax Rate

Government revenue needs
Political ideology
Tax competition
Social safety net costs
Economic cycle
Income inequality

Frequently Asked Questions

Methodology & Data Sources

The data presented on this page is compiled from publicly available datasets published by international organizations including the World Bank, World Health Organization (WHO), International Labour Organization (ILO), United Nations, NASA, and national statistical agencies.

Global averages are calculated using population-weighted or arithmetic means depending on the metric. Country-level data reflects the most recent available figures, typically from 2024–2024. Where gaps exist, the latest available data point is used.

All figures are subject to revision as source organizations update their datasets. For the most authoritative data, we encourage consulting the original sources linked in the table above.