OECD – Taxing Wages 2019. The OECD’s Taxing Wages 2019 provides unique information for each of the 36 OECD countries on the income taxes paid by workers, their social security contributions, the transfers they receive in the form of cash benefits, as well as the social security contributions and payroll taxes paid by their employers. Results reported include the marginal and average tax burden for one- and two-earner households, and the implied total labour costs for employers. This brochure summarises the main results of this edition by: l presenting an analysis of the average tax wedge in OECD countries in 2018, the changes from the previous year and the trends between 2000 and 2018 for a selection of household types that are covered in Taxing Wages 2019. l presenting a brief analysis of the net personal average tax rate for a single average worker across OECD countries for 2018. Tax wedge for the average worker Table 1 shows that the tax wedge between total labour costs to the employer and the corresponding net take-home pay for single workers without children, at average earnings levels, varied widely across OECD countries in 2018 (see column 1). While in Austria, Belgium, France, Germany, Hungary and Italy, the tax wedge is 45% or more, it is lower than 20% in Chile, Mexico and New Zealand. The highest tax wedge is observed in Belgium (52.7%) and the lowest in Chile (7.0%). Table 1 shows that the average tax wedge in OECD countries was 36.1% in 2018. The changes in tax wedge between 2017 and 2018 for the average worker without children are described in column 2 of Table 1. The OECD average decreased by 0.16 percentage points. Among OECD member countries, the tax wedge increased in 22 countries and fell in 14. Decreases of more than one percentage point were observed in Estonia (2.54 percentage points), the United States (2.19 percentage points), Hungary (1.11 percentage points) and Belgium (1.09 percentage points). There were no increases exceeding one percentage point and the largest increase was observed in Korea (0.49 percentage points).

 

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