OECD publishes Taxing Wages 2019 report

Released 11 April 2019

The Organisation for Economic Co-operation and Development (OECD) has published its annual report on details of taxes paid on wages in OECD countries.

Taxing Wages 2019 shows that the ‘tax wedge’ (total taxes on labour costs paid by employees and employers, minus family benefits, as a percentage of the labour cost to the employer) was 36.1% in 2018 (a fall of 0.16 percentage points from 2017). The report also considers the net personal average tax rate, which measures the income tax and social security contributions paid by employees, minus any family benefits received, as a share of gross wages. In 2018, the OECD average rate was 25.5%. The 2019 edition of Taxing Wages also includes a Special Feature that looks at the taxation of the median worker in OECD countries, comparing this to the taxation of the average worker.

For more information, see Reforms in a few countries drive a decline in average OECD labour taxes.

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