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Tax wedge in United States

What does employing someone really cost, tax included?

United States's tax wedge is 29.98 % — #9 of 36 countries on the atlas (lower is better). Period 2025.

29.98%

Checked 8 Sept 2026Period 2025

Source: OECD Taxing Wages + OECD Tax Database

Of every €100 an employer spends on an average single worker, about €30 goes to tax and social contributions before pay-out.

Among 36 countries

1 of 36 countries between 7.46 % and 9.20 %1 of 36 countries between 19.65 % and 21.39 %2 of 36 countries between 21.39 % and 23.14 %1 of 36 countries between 23.14 % and 24.88 %1 of 36 countries between 24.88 % and 26.62 %2 of 36 countries between 26.62 % and 28.36 %1 of 36 countries between 28.36 % and 30.10 %4 of 36 countries between 31.84 % and 33.59 %1 of 36 countries between 33.59 % and 35.33 %3 of 36 countries between 35.33 % and 37.07 %6 of 36 countries between 38.81 % and 40.55 %4 of 36 countries between 40.55 % and 42.30 %3 of 36 countries between 42.30 % and 44.04 %2 of 36 countries between 44.04 % and 45.78 %2 of 36 countries between 45.78 % and 47.52 %2 of 36 countries between 47.52 % and 49.26 %median 39.34 %United States: ahead of 75 % of the 36 countries with a published tax wedgeUnited States 29.98 %7.46 %49.26 %
Half of all 36 countries sit between 29.98 % and 41.44 %. United States is ahead of 75 % of them. Axis trimmed to the 2nd–98th percentile; 1 value beyond it sits in the end bars.
Rank
#9 of 36
lower is better
Ranked behind
75 %
27 of 36 countries

vs median 39.34 %: −9.36 pp (better)

The neighbourhood

#CountryTax wedgevs United States
7 Costa Rica27.66 %−2.32 pp
8 Australia27.90 %−2.07 pp
9 United States29.98 %—
10 Canada32.12 %+2.15 pp
11 United Kingdom32.38 %+2.40 pp

Tax wedge for a single average earner (type case, not advice).

How to read this figure

The OECD tax wedge: income tax plus employee AND employer social contributions as a share of total labour cost, for a single person at exactly the average wage. It is a comparable type case between countries — not your personal tax rate.

Next, about United States

Tax on payTake-home payAverage monthly salary
Tax wedge, all countries ranked →Compare United States with another country →Everything about United States →
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