Paying taxes might seem like a big drag but we forget that the money we pay to the government actually goes towards essential services like our roads, police and firehouses. Believe it or not there are countries around the globe that have higher tax rates than the US and even higher percentages of their tax income going to social services! Here is how the US compares to some other first world nations around the globe.

First of all, when we look at the amount of taxes earned by the government compared to the total GDP, America is towards the lower end. We are at 26%, while top taxed countries like Denmark are hovering just below 50%. That means the Danes are paying a boatload of taxes! Right below them are France and Belgium, two countries known for having a high tax rate to support lots of social programs.

The maximum percentage anyone in the US will pay in taxes is 39.6%. That sounds like a lot and it is! However, if you live in Germany, you can be taxed up to 47.75% of your income, and in Luxembourg it goes over 50%. You may wonder why people would even live in a country with such a high tax rate, but it is probably just because these people are used to it. They don’t know anything different, just like we don’t know anything different than our tax system. Of course the majority of people aren’t paying nearly 40% of their income for taxes, as the minimum in the US is 0%. Other countries do not have such a generous minimum. In Spain, the minimum is always 20% of what you make, no matter how little you made that year, and in Italy the minimum is 23% on anything you earn over 8,500 Euros. Now you know a little about how we compare to the world at large when it comes to taxes.