Income tax rate

This article explains the income tax rate with its essential parameters (assessment base, zero zone, tax rates, etc.) for different countries. Topics such as history, tax law, calculation scheme or formulas are described in the country-specific articles on income tax .

The income tax rate is the calculation rule ( tax rate ) for income tax . It indicates how much tax has to be paid on a given taxable income . This is specified , for example, in Section 32a EStG for Germany or in Section 33 EStG for Austria.

General

Basically, one can differentiate between different tariff courses when collecting income tax: Progressive tariff ( linear or graduated ), proportional tariff ( flat tax ), degressive tariff . A distinction can also be made according to the type of income , such as the dual income tax . To define the amount of the tax amount, depending on income is a generally tax amount function .

Assessment basis

In order to calculate the income tax amount, a relevant income must be defined. In German tax law, this is referred to as taxable income (ZvE) ( Section 2 (5 ) sentence 1 EStG ). The Austrian Income Tax Act only knows the term income, but the definition is similar. In Switzerland we speak of taxable income.

In the above-mentioned German-speaking countries, the basic allowance is part of the assessment basis . This means that within the calculation rule for the income tax rate ( tax amount function ) a tax-free zone (zero zone) is taken into account. In other countries, the basic allowance is not always part of the tariff. So begins in the UK to calculate the income to zero, the personal allowance (before application of the calculation specification personal allowance is deducted). Similar tariffs apply in the United States .

Tariff history

The structure of the tariff naturally offers a lot of opportunities for discussion. The objective criteria are:

• Course over the assessment base (see table)
• Basic tariff values ​​as the boundary between tariff zones
• Tax amount function as allocation of income in euros to the tax amount in euros
• Marginal tax rates (with initial and top tax rate ) as a tax component based on a change in the tax base
• Average tax rates as a tax component based on the entire tax base

Tariff profiles (general examples)

designation	Tax amount function	Limit set function	Average rate function
Linear progressive tariff	progressive , parabolic	linear	progressive
Tier limit rate tariff	progressive , linear in sections	stepped, jump-fixed	progressive, wavy
Flat tax with basic allowance	linear , proportional	sprungfix	indirectly progressive
Poll tax	constant , invariant, fixed	constant equal to zero	regressive

Average tax rate

If the question arises what percentage of the total ZVE is to be paid as taxes, then you need the average tax rate . This is defined as the ratio of the tax amount (StB) to the taxable income (zvE).

${\displaystyle {\bar {s}}={\frac {\rm {StB}}{\rm {zvE}}}}$

The average tax rate is required to assess whether the total income is higher or lower . As income increases, it approaches the top tax rate ( asymptotically ) more and more. The slope of the average rate function indicates whether it is a regressive, proportional or progressive course.

With and applies to the slope (first derivative) ${\displaystyle {\bar {s}}={\text{Durchschnittsteuersatz}}}$ ${\displaystyle B={\text{Bemessungsgrundlage}}}$

${\displaystyle {\frac {d{\bar {s}}}{dB}}={\begin{cases}<0&\rightarrow {\text{regressiv, sinkender Durchschnittsteuersatz}}\\=0&\rightarrow {\text{proportional, konstanter Durchschnittsteuersatz}}\\>0&\rightarrow {\text{progressiv, steigender Durchschnittsteuersatz}}\\\end{cases}}}$

Marginal tax rates

The marginal tax rate is used to assess the burden on the additional income.

The entry tax rate is the portion that one has to pay as tax of the first taxable euro above the zero zone. So it is the lowest marginal tax rate. Mathematically it is equivalent to the slope of the tax amount function at the lower end of the first progression zone.

The top tax rate is the highest marginal tax rate. This usually remains constant for higher incomes.

The information on the entry and top tax rate in income tax alone is not sufficient for a holistic understanding of the tax burden of the various income groups. For this purpose, the tariff progression and the basic allowance must also be considered.

Effect of tax credit or tax exemption

Allowances and deductions

Deductions or deductions ( tax reductions ) are deducted directly from the calculated tax amount. This corresponds to a vertical shift of the curve for the progressive tax amount function (red) downwards. The absolute tax savings are the same for all incomes (blue). The relative saving (%), on the other hand, is greater for low incomes than for high incomes.

Basic allowances and additional allowances are deducted from the assessment base. This corresponds to a horizontal shift of the curve mentioned to the right. The absolute tax savings increase with increasing income (green). The relative saving (%) is also somewhat greater here with low incomes than with high incomes. Compared to the effect of the tax credit, however, the effect of the tax exemption is significantly more beneficial for high incomes.

Special tariffs

In different countries there are special regulations on other tariff features. For example, if the taxable income in Germany contains extraordinary income , the income tax must be calculated at a reduced tax rate (one- fifth rule ). Also worth mentioning is the progression proviso , which can lead to a special (higher) tax rate. In Austria, special payments such as the 13th and 14th monthly payment are taxed at a reduced rate ( annual sixth ).

Taxation of spouses

Spousal income taxation differs from that of an individual in many countries. A distinction must be made here between models such as family splitting , individual taxation with support for children, spouse splitting (Germany) or special lower tax rates for married couples.

Child benefit and child allowances

In many countries there is also a tax connection between child benefit and child allowance .

Country overview

List of selected countries

The following table shows the most important parameters for income tax rates in various countries. When interpreting this data, it must be taken into account that in several countries with comparatively high tariff input rates the contributions to the statutory social insurance are covered, e.g. B. in the Nordic countries and in the Netherlands. This makes comparability difficult. The taxation of spouses is also regulated differently. In some countries an individual assessment is carried out (e.g. Austria), in others a joint assessment , whereby this can be carried out with splitting (e.g. Germany) or without (e.g. USA). Purchasing power parities can make a significant difference in assessing taxation. This is ignored here.

Income tax rates of selected countries

State (municipality or similar)	Basic allowance	Deduction amount	Input tax rate	Top benchmark (beginning of the zone with the top tax rate)	Top tax rate	was standing	reference
European Union
Belgium (Brussels)	€ 7,380		26.5% State: 25.0% Brussels Municipality: 1.5%	€ 37,870	53.5% State: 50% Brussels Municipality: 3.5%	2015
Bulgaria	0 €		10%	Flat tax	10%	2015
Denmark	0 €	€ 392 (DKK 2,914)	36.98% State: 8.08% Municipalities: 28.9%	depending on the composition of the income	51.95%	2015
Germany	€ 9,168		14%	€ 55,960 from € 265,327	42% 45% plus solidarity surcharge	2019	§ 32a EStG
Estonia	1,848 €		20%	Flat tax	20%	2015
Finland	€ 16,500		26.0% State: 6.5% Municipalities: 19.5%	€ 100,000	51.25% State: 31.75% Municipalities: 19.5%	2015
France	€ 9,680		21.86% State: 14.0% plus social taxes 7.86%	single: € 500,000 Joint assessment: € 1,000,000	57% state: 45% special levy: 4% plus social tax 8%	2017	[1] [2] [3]
Greece	0 €	€ 2,100		€ 42,000	42%	2015
Ireland	Special levy: € 12,020	State: 1,650 €	21.5% State: 20% Special levy: 1.5%	State: € 33,800 Special tax: € 70,044	48% State: 40% Special tax: 8%	2015
Italy	0 €	-	25.28% State: 23.00% Regions: 2.28%	State: € 75,000 Special levy: € 300,000	48.28% State: 43.00% Special tax: 3% Regions: 1.15%	2015
Croatia	2,200 kuna		12%	13,200 kuna	40%	2016	[4]
Lithuania	€ 1,992		15%	Flat tax	15%	2015
Luxembourg	€ 11,265		9.06% State: 8.0% Unemployment Fund: 0.56% Supplement for budget adjustment: 0.5%	State: € 100,000 Budget adjustment supplement: € 150,000	44.1% State: 40.00% Unemployment Fund : 0.5% Supplement for budget adjustment: 3.6%	2015
Malta	€ 8,500		15%	€ 60,001	35%	2015
Netherlands	0 €	€ 2,203	36.5%	€ 57,585	52%	2015
Austria	€ 11,000		25%	€ 1,000,000	55%	2017	EStG § 33
Poland	0 €	134 €	18%	€ 20,597	32%	2015
Portugal	0 €		18.0% State: 14.5% Surcharge: 3.5%	State: € 80,000 Hammer price: € 250,000	56.5% State: 48% surcharge: 5.0% surcharge: 3.5%	2015
Romania	56 €		16%	Flat tax	16%	2015
Sweden	State: € 45,834 Municipalities: € 1,396		51.89% State: 20.0% Municipalities: 31.99%	€ 65,640	56.99% State: 25.0% Municipalities: 31.99%	2015
Slovakia	€ 3,803		19%	€ 35,022	25%	2015
Slovenia	€ 6,520		16%	€ 70,907	50%	2015
Spain	€ 5,550		19.5%	€ 60,000	46%	2015
Czech Republic		917 € (24,840 CZK)	15.0%	Flat tax € 47,144	22% 15% solidarity surcharge: 7.0%	2015
Hungary			16%	Flat tax	16%	2015
United Kingdom	€ 14,996 (£ 13,000)		20%	€ 212,209 (£ 212,200)	45%	2015	HM Revenue & Customs
Cyprus	€ 19,500		20%	€ 60,000	35%	2015
Other countries
Australia	€ 15,200 ( AUD 18,200 )		20.5% state: 19% charge for health system: 1.5%	€ 144,672 (AUD 180,000)	46.5% State: 45% Health system fee: 1.5%	2011-12	Australian Taxation Office
Japan	State: € 2,855 (¥ 380,000) Prefectures: € 2,480 (¥ 330,000) Municipalities: € 2,480 (¥ 330,000)		15% State: 5% Prefectures: 4% Municipalities: 6%	State: € 135,247 (¥ 18,000,000) Prefectures: Flat Tax Municipalities: Flat Tax	50% state: 40% prefectures: 4% municipalities: 6%
Canada (Ontario)	Federal Government: € 6,522 (CAD 10,320) Province of Ontario: € 5,612 (CAD 8,881)		21.05% Federal Government : 15.00% Province of Ontario: 6.05%	Federal Government: € 79,753 (CAD 126,264) Province of Ontario: € 46,574 (CAD 73,698)	46.41% Federal Government: 29.00% Province of Ontario: 17.41%
Norway	State: € 49,277 (NOK 441,000) Municipalities: € 4,559 (NOK 40,800)		37% State: 9% Municipalities: 28%	State: € 80,072 (NOK 716,000) Municipalities: flat tax	40% state: 12% municipalities: 28%
Switzerland (Zurich)	Confederation: € 8,946 (CHF 13,600) Canton / municipality of Zurich: € 4,078 (CHF 6,200)		5.15% Confederation: 0.77% Canton / municipality of Zurich: 4.38%	Confederation: € 468,688 (CHF 715,500) Canton / municipality of Zurich: € 154,519 (CHF 234,900)	39.97% Confederation: 11.50% Canton / municipality of Zurich: 28.47%	2009	DBG Art. 214
Turkey	0 TRL	unknown	15%	53,000 TRL	35%	2011	GELİR VERGİSİ KANUNU, 103rd Madde
USA (New York)	Bund: € 2,591 ($ 3,650) - -		16.22% Federal Government : 10% New York State: 4% New York City: 2.907%	Bund: € 264,729 ($ 372,950) New York State: € 354,912 ($ 500,000) New York City: € 35,491 ($ 50,000)	43.2% Federal Government: 35.00% New York State: 8.97% New York City: 3.65%
Source: Federal Ministry of Finance, Germany, if no other information is given in the “Reference” column!

Germany

Tariff trend basic and splitting tariff 2013 in Germany (tariff zone 5 is not visible)

Animated tariff history from 1990 to 2014 (zvE up to 70,000 euros)

Animated tariff history from 1990 to 2014 (zvE up to 300,000 euros)

→ Main article : Income tax (Germany)

In Germany, the current income tax rate is set out in the Income Tax Act ( Section 32a ) EStG. The tariff course currently begins with two linear progressive tariff zones and has had an additional tariff level for particularly high incomes since 2007 . In the past , the tariff also had other functional forms.

Tariff zones

The income tax tariff consists of five tariff zones that define the tax amount function according to Section 32a (1) sentence 2 EStG. A more detailed analysis of the mathematical formulas in the 2019 income tax rate provides the following:

Tariff zone 1 (zero zone)

If the taxable income (zvE) per year is not higher than € 9,168, no income tax is due ( basic allowance ). For married couples, this allowance doubles due to the splitting of the spouse .

Tariff zone 2 (progression zone 1)

Income tax is only incurred when the (rounded) zvE exceeds € 9,168 (single) or € 18,336 (married). In the entrance area of ​​tariff zone 2, a marginal tax rate of 14% applies (entry tax rate). Thereafter, the marginal tax rate increases linearly to around 24% up to a zvE of € 14,254. The marginal tax rate increases in this zone by around 2 percentage points for every € 1,000 of additional income. For married people, the basic income value is € 28,508, which is why the increase in the marginal tax rate is only around 1 percentage point for every € 1,000 increase in income.

Tariff zone 3 (progression zone 2)

From a zvE of € 14,255 (single) or € 28,510 (married) up to € 55,960 or € 111,920, the marginal tax rate increases linearly, but not as steeply as in tariff zone 2, from 24% to 42% . The marginal tax rate increases in this zone by around 0.43 percentage points for every € 1,000 additional income for single people and by around 0.22 percentage points for married people.

Tariff zone 4 (proportional zone 1)

From a zvE of € 55,961 (single) or € 111,922 (married), the marginal tax rate remains constant at 42%; d. H. for every 1000 euros by which the zvE increases in this zone, a tax of 420 euros is due.

Tariff zone 5 (proportional zone 2)

From a zvE of € 265,327 (single) or € 530,654 (married), the marginal tax rate is 45% (top tax rate). H. for every 1000 euros by which the zvE increases in this zone, a tax of 450 euros is due. This second proportional zone was added in 2007 and is often referred to as the wealthy tax .

Examples

The following examples relate to individually assessed or single taxpayers (basic tariff 2019).

• Taxable income 010,000 euros, marginal tax rate = 15.6%, average tax rate = 01.23%
• Taxable income 015,000 euros, marginal tax rate = 24.3%, average tax rate = 07.6 0 %
• Taxable income 030,000 euros, marginal tax rate = 30.8%, average tax rate = 17.6 0 %
• Taxable income 050,000 euros, marginal tax rate = 39.4%, average tax rate = 24.6 0 %
• Taxable income 120,000 euros, marginal tax rate = 42.0%, average tax rate = 34.7 0 %

Input tax rate

The basic tax rate is 14% from the 2009 assessment period.

Top tax rate

An income taxpayer with taxable income over € 265,326 (wealthy tax ) pays 45% tax on the excess.

For comparison: in the 1970s the top tax rate was 56%. Compared to 1998 (53%), an income taxpayer with a taxable income of € 70,000 paid about € 4,000 less in 2005, a taxpayer with € 100,000 about € 7,000 less and someone with a zvE of € 200,000 about € 18,000 less.

It should be noted that a solidarity surcharge of 5.5% (tariff since 1998) is levied on income tax . The peak load including the solidarity surcharge is accordingly 42% + (5.5% from 42%) = 44.31% (as of 2006), 45% + (5.5% from 45%) = 47.475% (from 2007)

Middle class belly

Income tax tariff reform 1990 in Germany

The term “middle class belly” comes from the 1960s and is often used in a populist way. Back then, the marginal tax rate was not linear, but followed a mathematical formula that created a bulbous curve. In the following decades this curve was flattened more and more until the linear progression was finally introduced in 1990 . In the following years, the linear course was basically retained, but divided into two or three sections. The marginal tax rate is currently increasing linearly in two zones; the increase between the basic tax allowance and 14,254 euros is around four times greater than between 14,255 and 55,960 euros.

Example (tariff 2010 to 2012 Section 52 (41 ) EStG old version)

A has a taxable income (zvE) of € 12,000, B receives € 35,000 annually. Both receive a wage increase that increases the zvE by 1000 €.

• A has to pay € 705 in taxes for the old zvE, which corresponds to an average tax rate of 5.88%. The marginal tax rate for the next additional euro earned is 21.29%. For the new zvE of € 13,000 the tax is € 927. The average tax rate has increased to 7.13%, the marginal tax rate to 23.11%. For every € 1,000 more ZVE, the marginal tax rate increases by 1.82%.

• B has to pay € 7,259 in taxes for the old zvE, which corresponds to an average tax rate of 20.74%. The marginal tax rate for the next additional euro earned is 33.82%. For the new zvE of € 36,000, the tax is € 7,599. The average tax rate has increased to 21.11%, the marginal tax rate to 34.28%. For every € 1,000 more ZVE, the marginal tax rate increases by 0.46%.

As in the 1960s, this course is referred to in the political discussion as the “middle class belly”. It is controversial whether a zvE of around € 13,000 per year represents medium- sized companies. Furthermore, the historical development of the tax rates since 1996 must be taken into account, which arose from the decisions on the tax exemption of the subsistence level and the subsequent tax reforms. It should also be noted that the average tax rate for a ZvE of € 13,000 was reduced from around 15% in 1996 to around 7% in 2013.

Austria

→ Main article : Income tax (Austria)

In Austria, the current income tax rate is specified in the Income Tax Act ( Section 33 EStG ). The income tax rate applicable in Austria is a stepped progressive rate (see also tax progression ). The marginal tax rate is constant within each zone, but the average tax rate increases with the amount of the relevant income ( Section 2 (2) EStG ), hereinafter referred to as taxable income (zvE). The deductible amounts ( § 33 Paragraph 4 to 6 EStG ) are to be deducted from the resulting tax amount .

Tariff zones

Since 2016 , the income tax tariff has consisted of 7 tariff zones that determine the tax amount function. A more detailed analysis of the mathematical formulas in the Income Tax Act provides the following:

Tariff zone	Annual income in euros	Marginal tax rate in%	Average tax rate in%
1	for the first 11,000 euros	0%	0
2	over 11,000 euros to 18,000 euros	25%	0% to 9.72%
3	over 18,000 euros to 31,000 euros	35%	9.72% - 20.32%
4th	over 31,000 euros to 60,000 euros	42%	20.32% - 30.80%
5	over 60,000 euros to 90,000 euros	48%	30.80% - 36.53%
6th	over 90,000 euros to 1 million euros	50%	36.53% - 48.79%
7th	over 1 million *	55%	> 48.79%

* For parts of the income over 1 million euros, the tax rate according to Section 33 (1) EStG in the calendar years 2016 to 2020 55%.

Income tax rate Austria from 2016 compared to 2009

Tariff zone in words

If the taxable income (zvE) per year is not higher than € 11,000, no income tax is due ( basic allowance ). Income tax is only due if the zvE exceeds € 11,000. The income component is taxed up to € 18,000 at a constant marginal tax rate of 25%. The average tax rate increases within tariff zone 2 from zero to 9.72%. From a zvE of € 18,001 up to € 31,000, the marginal tax rate is then 35%. The average tax rate increases within tariff zone 3 from 9.72% to 20.32%. From a zvE of € 31,001 up to € 60,000 the marginal tax rate is 42%. The average tax rate increases within tariff zone 4 from 20.32% to 30.80%. From a zvE of € 60,001 up to € 90,000, the marginal tax rate is 48%. The average tax rate increases within tariff zone 5 from 30.80% to 36.53%. From a zvE of € 90,001 up to € 1 million, the marginal tax rate is 48.79%; d. H. for every euro by which the zvE increases in this zone, a tax of ~ € 0.50 is due - without taking into account a rounding rule. The average tax rate increases within tariff zone 6 from 36.53% to 48.79%.

Above a zvE of € 1 million, the marginal tax rate remains constant at 55%, but only until 2020. This applies without any further limitation.

Examples

• Taxable income 0.012,000 euros, marginal tax rate = 25%, average tax rate = 02.1%
• Taxable income 0.024,000 euros, marginal tax rate = 35%, average tax rate = 16.0%
• Taxable income 0.048,000 euros, marginal tax rate = 42%, average tax rate = 28.0%
• Taxable income 0.096,000 euros, marginal tax rate = 50%, average tax rate = 37.4%
• Taxable income EUR 1,000,001, marginal tax rate = 55%, average tax rate = 48.8%

The basic tax-free allowance of 11,000 euros was not taken into account here.

(each calculated without deductions)

Switzerland

→ Main article : Income tax (Switzerland)

In Switzerland, income tax is levied simultaneously by the federal government (direct federal tax), the cantons and the communes. The tariff is uniform at federal level for the entire state, but differently at canton and commune level.

Direct federal tax

Table for direct federal tax in Switzerland from 2012

According to Art. 128 of the Federal Constitution, the Confederation can levy a direct federal tax, but must take into account the burden of direct taxes on the cantons and communes when setting the tariffs. This explains the relatively low top tax rate of at most 11.5 percent on the income of natural persons for federal tax.

In Switzerland, the current tariff is laid down in the law on direct federal tax ( DBG Art. 214 ). A distinction is made here between the tariff for single persons without children (Art. 214 Paragraph 1) and spouses or single-parent families (Art. 214 Paragraph 2). These are tiered limit rate tariffs that are very finely subdivided into 10 or 14 stages. It is noticeable, however, that a higher marginal tax rate (13.2% or 13.0%) applies to the second highest income bracket than to the highest category (11.5%). Nevertheless, the average tax rate rises continuously for mathematical reasons (progression).

Examples (single tariff 2012)

• Taxable income 025,000 francs, marginal tax rate = 0.77%, average tax rate = 0.3234%
• Taxable income 050,000 francs, marginal tax rate = 2.64%, average tax rate = 0.8898%
• Taxable income CHF 100,000, marginal tax rate = 6.6 0 %, average tax rate = 2.874 0 %

Cantonal and municipal taxes

Marginal and average tax rates from 2012 for income tax in Switzerland (Canton of Zurich)

The income tax rates at cantonal level are very different. As a rule, a cantonal tax (state tax) is specified, which is then multiplied by the respective canton, municipality and church tax rate. This tax rate is set independently by each municipality.

For example, the income tax in the canton of Zurich is a twelve-step marginal rate tariff with a basic allowance of 6,700 francs or 13,500 francs for married people. The basic tax rate is 2% and rises to the top tax rate of 13% with a top benchmark of 254,900 francs or 354,100 francs for married couples. The following tax rates apply in Zurich for 2012:

• Canton: 100%
• Municipality: 119%
• Church: 10% to 14%

The tax amount calculated after the state tax must be multiplied by the total tax rate of 219% (excluding church tax). The actual starting tax rate is therefore 4.38% and the top tax rate is 28.47%.

France

→ Main article : Income tax (France)

The so-called " bouclier fiscal " is a maximum limit for direct taxes in favor of private individuals. This tax law principle was defined by Art. 1 of the Code général des impôts :

"  Les impôts directs payés par un contribuable ne peuvent être supérieurs à 50% de ses revenus  ".

This means that the direct taxes that a taxpayer pays must not exceed 50% of his income. In addition to personal income tax, this provision includes a number of other taxes and duties that affect the same. This restriction was lifted by a parliamentary decision on July 6, 2011.

French President-elect François Hollande announced during the election campaign that he wanted to increase the top tax rate significantly. In February 2012 he named a rate of 75% for incomes above one million euros. Income of over 150,000 euros should therefore be taxed at 45%. The 75% tax rate was overturned by the Constitutional Council at the end of December 2012 .

Poland

Income tax table Poland from 2009

→ Main article : Income tax (Poland)

The income tax rate in Poland has been a tiered limit rate tariff with only two levels since 2009. It is noticeable that there is no basic tax allowance. Instead, a deduction amount of 556 złoty (PLN) is subtracted from the calculated tax amount. For mathematical reasons, this deduction amount indirectly leads to a “zero zone” within which no taxes are payable. Up to an income of PLN 3,089, the tax amount is less than or equal to zero (see picture on the right).

step 1

In the income range from PLN 3,090 to PLN 85,528, the marginal tax rate is 18% and the average tax rate increases from 0% to 17.3%.

Level 2

In the income range above PLN 85,528, the marginal tax rate is 32%. This applies without any further limitation. The average tax rate is 17.3% at the beginning of the stage and gradually approaches the top tax rate of 32%. This tax rate is 29.9% for an income of PLN 600,000.

Examples

• Taxable income 0PLN 30,000, marginal tax rate = 18%, average tax rate = 16.1%
• Taxable income 0PLN 60,000, marginal tax rate = 18%, average tax rate = 17.1%
• Taxable income PLN 120,000, marginal tax rate = 32%, average tax rate = 21.6%

United Kingdom

→ Main article : Income tax (United Kingdom)

The UK and Northern Ireland income tax rates and allowances have some specifics. The lowest tariff zone starts with an income of zero pounds. The age-related basic personal allowance is not part of the assessment basis. The taxable income is thus defined differently than, for example, in German-speaking countries. Another special feature is the reduction in the personal basic allowance for high incomes. This allowance is reduced by £ 1 each time your taxable income increases by £ 2 in excess of £ 100,000. This reduction occurs regardless of the age of the taxpayer.

United States

→ Main article : Income tax (United States)

Average and marginal income tax rate in the United States in 2009 (federal tax only)

In the United States, the federal income tax applies at a nationwide rate. Most states also have their own personal income tax. Some municipalities and counties also have income tax that is in addition to federal and state taxes.

Federal tax

The federal income tax rate is a tiered limit rate with seven levels. The basic tax rate is 10%. A basic tax allowance of $ 3,650 must be deducted prior to calculation. For portions of income over $ 450,000, the top tax rate is 39.6% (2013 tariff).

States and municipalities

The tax rates set vary from state to state. The highest rate is 10.3% in California and the lowest is 3% in Illinois. With the exception of Illinois, income tax is progressive in all states. In the municipalities, the tax rates are lower and amount to up to 4%. Income tax amounts paid to the state and local government are in most cases eligible for federal tax returns.

Web links

• Income tax calculator of the Federal Ministry of Finance (Germany)
• Tax calculation programs on the website of the Federal Ministry of Finance (Austria)
• Tax calculator of the Federal Tax Administration (Switzerland)

Individual evidence

1. ↑ ^{a b} See table "Income Tax rates and taxable bands" in Income Tax rates and allowances
2. ↑ ^{a b} See table " Federal Individual Income Tax Rates History "
3. ↑ ^{a b c} In tax theory, a tariff is considered progressive if the slope of the tax amount function increases with increasing income (the curve rotates counterclockwise). In contrast, the average rate function shown in the present example shows a degressive increase (the curve rotates clockwise). See also definition of progressive and degressive growth in mathematics and business administration .
4. ↑ ^{a b} The most important taxes in an international comparison 2015, page 25ff, tables 6 and 7
5. ^ Income Tax rates and allowances, accessed April 13, 2015, Rates and allowances - Income Tax 2014-15
6. ↑ See "Income you must declare" in the Australian Taxation Office ( memento of the original from March 6, 2016 in the Internet Archive ) Info: The archive link was inserted automatically and has not yet been checked. Please check the original and archive link according to the instructions and then remove this notice. 
7. ↑ Tariff history (1958-2005) with calculation formulas or current overviews of the income tax tariff burden from 1958 in Germany ( memento of the original from February 19, 2014 in the Internet Archive ) Info: The archive link was inserted automatically and has not yet been checked. Please check the original and archive link according to the instructions and then remove this notice. 
8. ↑ 1. Derivation of the function StB = (912.17y + 1400) y
9. ↑ 2nd derivation of the function, exactly 18.2434% based on 10,000 € or 1.82434% based on 1000 € more.
10. ↑ 1st derivative of the function StB = (228.74z + 2397) z + 1038
11. ↑ 2nd derivation of the function, exactly 4.5728% based on 10,000 € or 0.45728% based on 1000 € more.
12. ↑ Cantonal Tax Office Zurich - State tax rates from 2012
13. ↑ bouclier fiscal ( Memento of the original from January 1, 2012 in the Internet Archive ) Info: The archive link was inserted automatically and has not yet been checked. Please check the original and archive link according to the instructions and then remove this notice. read on January 15, 2012  
14. ↑ Le bouclier fiscal s'envole . Le Quotidien, July 7, 2011. p. 7.
15. ↑ Hollande for 75 percent top tax rate. faz.net, February 28, 2012, accessed May 9, 2012 . 
16. ↑ zeit.de September 10, 2012: Hollande announces tax increases in the billions
17. ^ Süddeutsche Zeitung : France's Constitutional Council stops wealth tax , December 29, 2012