By Lal Singh See, tax collection is a reality, and it pretty much happens in every country around the world, and the main goal is to collect these funds and use them for different things within the country to make the living of the people better within the borders. But it is also true that some countries collect higher income taxes from citizens than other nations around the world. Like, you must have heard of Japan collecting much more than the USA and the UK, right? But, is there any other country that collects even more income tax? Well, that is what we’re about to find out here with this list of the Top 10 Highest Taxed Countries in the World 2025. Here we go then.
1. Ivory Coast – 60%
It could very well be that you’re a bit shocked and surprised to see the Ivory Coast’s name on this list, but, when we’re talking about the highest personal income tax rate in the world, well, it is much higher here than in Japan and Finland. Here, the top income tax rate is about or no less than 60%, literally the highest in the entire world. Quite frankly, it is still more staggering, and I think this fact turns all the arguments around. Basically, most of the money made from taxes does not necessarily go towards the building of the city and the provision of public services, although the country heavily depends on the export of cocoa.
2. Finland – 56.95%
See, sure, you must have heard that Finland is the actual highest income tax country in the world because it provides its citizens with the benefits of doing that as well. One of the highest combined rates in the world of 56.95% is made up of national, municipal, and even church taxes for some, where residents of Finland are taxed on their worldwide income. The majority of Finns consider the high taxes just the cost of living in a better society. Plain and simple!
3. Japan – 55.97%
At third place, we have Japan, where the highest-income individuals may face a personal tax rate of as much as 55.97%, and that’s pretty normal down there. The figures account for national and local taxes plus a reconstruction surtax. While the ultimate figure may differ depending on the city you live in, if you happen to be in the highest bracket, you will definitely notice the impact. But the thing is, Japan is pretty much perfect in terms of its efficiency; it doesn’t matter if it’s bullet trains or public services that are almost faultless, everything operates smoothly.
4. Denmark – 55.9%
At number four, well, it is usually seen that Denmark proves that its people are not frightened by a heavy tax load and are willing to carry it. The Scandinavian country, with a maximum tax rate of 55.9% that includes labor market contributions, practices the principle of progressive taxation. What do the citizens get for paying such high taxes? Well, quite a lot actually, like free education for life, a first-class healthcare system, and a very generous parental leave policy in return for their money.
5. Austria – 55%
Austria is actually another stunningly beautiful country in Europe, and it is not just the nature that makes this country beautiful; it is its infrastructure, the facilities, and all that. And those are only possible when the citizens pay a higher income tax, which in Austria is about 55%, but that’s the higher end of the cap, only for those who earn more than €1 million per year. But yes, it was initially introduced as a short-term measure, but it is still valid in 2025.
6. Belgium – 53.7%
If you know the geography of Europe, you’ll know that Belgium is quite a respected country in the region and a higher-income one too. So no doubt, you’ll see higher income taxes applicable to the citizens as well, just like the rest of Europe. Here, though, the higher end of the tax rate is about 53.7% for top earners. The federal and municipal taxes are different in each region, but the addition of social security makes the total burden one of the heaviest in Europe.
7. Sweden – 52.3%
At number seven, Sweden still keeps its record of high taxes with a maximum personal income tax rate of as high as 52.3%. To you and many people down there in Sweden, it sure sounds like a burden, but there are a lot of things that the citizens get in return. Like what? Well, in exchange, Sweden provides a very close to perfect equilibrium, like free education, equal parental leave, and healthcare accessible to pretty much everyone.
8. Aruba – 52%
Aruba is ranked number eight, and it is true that this might be unexpected or kinda shocking for many of you. Even though the island is marketed as a dreamy place in the Caribbean, it imposes a top tax of 52% on high earners, thus ranking itself among the most heavily taxed countries of the region. Sure, we get it, the public services may not be up to the level of those in Europe, the gorgeous nature of Aruba and the relaxed way of life of the island still make it a nice place to live, if you are able to bear the tax.
9. Israel – 50%
With a good 50% tax on top incomes, Israel is ninth on the list of countries with the highest taxes, and how much that really is? 50% on the higher end! As is the case with most other countries on this list, Israel also taxes income earned anywhere in the world. We all know that defense is a big spending for Israel, but other than that, they also spend this tax collection on stuff like advanced healthcare, education, and innovation hubs.
10. Slovenia – 50%
At number 10 on our list of highest taxes is Slovenia, which equalled Israel in having a top tax rate of 50%. See, we get it, even though it is a pretty small country, the tax system is a progressive one, so it is only the highest income groups that are taxed at the highest level. However, what you receive in exchange is clean cities, free universities, good public healthcare, and an excellent quality of life, so not a burden, but a fair exchange.
Conclusion
That’s about it. See, in a close proximity of 50% income tax collection, there are many more countries we could talk about, but by far, these are the highest taxed countries in the world as of 2025. And surely, some of these nations are living up to the higher tax collection as well by providing top-notch infrastructure, and the overall living is better for an average person who pays this much tax year after year.