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Institute of Public Finance

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Tax wedge in Croatia, Austria, Hungary, Poland and Greece

Marin Onorato

The aim of this paper is to compare the tax burden on labour income in Croatia, Austria, Greece, Hungary and Poland in 2013. The Taxing Wages methodology has been applied to hypothetical units across a range of gross wages in order to calculate net average tax wedge, net average tax rate, as well as other relevant indicators. When it comes to single workers without children, the smallest tax wedge for workers earning less than the average gross wage was found in Croatia, while Poland had the smallest tax wedge for above-average wages. Due to a progressive PIT system, the tax wedge for a single worker in Croatia reaches 50% at 400% of the average gross wage, equalling that of Austria, Greece and Hungary. Tax wedges for couples with two children show a similar trend.

Keywords:  tax burden; tax wedge; average tax rate; personal income tax; social insurance contributions; Croatia; Austria; Hungary; Poland; Greece

Year:  2016   |   Volume:  40   |   Issue:  2   |   Pages:  265 - 288   

Full text (PDF)   |   DOI: 10.3326/fintp.40.2.5   |   E-mail this article   |   Download to citation manager
 June, 2016
II / 2016
EBSCO Publishing
ISSN 1846-887X
e-ISSN 1845-9757
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