Personal income tax and social security systems vary widely across the European Union, and the amount workers actually take home after compulsory deductions is a key measure of fiscal pressure. Eurostat data from 2025, released in mid-2026, provides a detailed picture of net annual earnings as a share of gross pay for different household types across the continent.
For a single person without children earning the average wage, the share of gross earnings lost to taxes and other deductions ranges from 15.1% in Cyprus to 41.5% in Romania. The EU average is 29.1%. In absolute terms, average annual gross earnings in the EU are €37,958, while net earnings amount to €26,929, meaning €11,029 goes to the state.
Highest and Lowest Tax Burdens
Beyond Romania, six other countries take more than one-third of gross earnings: Lithuania (39.1%), Belgium (37.6%), Slovenia (36.9%), Germany (34.8%), Denmark (34.0%), and Hungary (33.5%). Luxembourg (32.6%) and Croatia (31.5%) also exceed the EU average.
At the other end of the scale, Greece (17.0%) follows Cyprus, with less than one-fifth of gross earnings going to taxes and deductions. Several countries cluster in the 22% to 25% range, including Czechia (21.6%), Ireland (21.6%), Portugal (21.8%), Spain (22.1%), Bulgaria (22.4%), Malta (23.1%), Estonia (23.2%), Italy (24.1%), Sweden (24.5%), and Slovakia (24.6%).
Among the EU's four largest economies, Germany has the highest share at 34.8%, while Spain has the lowest at 22.1%. France stands at 26.2% and Italy at 24.1%. Broadly, Southern European countries tend to have lower shares, while Central and Eastern Europe show higher burdens. Western Europe is mixed, though Belgium and Germany rank among the highest. The Nordic and Baltic countries also vary considerably, indicating that geography alone does not explain the differences.
How Children Change the Picture
Having dependent children can significantly reduce the tax and deduction burden, especially for one-earner couples. For this household type, the share ranges from -3.3% in Greece (meaning net earnings exceed gross due to family allowances and tax refunds) to 33.4% in Romania. Poland also shows a negative figure (-0.6%). The EU average for one-earner couples with two children falls to 8.0%, compared with 29.1% for a single person without children.
Romania stands out at the higher end; the second-highest share is 23.8% in Lithuania, nearly 10 percentage points lower. Only Hungary, Slovenia, Finland, and Denmark exceed 20% for this household type.
Germany shows the largest gap between household types. For a single person without children, the share is 34.8%; for a one-earner couple with two children, it drops to just 0.2%—a difference of 34.6 percentage points. Annual gross earnings are €47,514 in both cases, but the couple takes home €47,424 compared with €31,000 for the single worker—a difference of €16,424.
For two-earner couples with two children, the share is lower than for a single person without children in every EU country except Greece. Poland shows one of the largest differences, at 11.5 percentage points. In Greece, the share is identical for both scenarios.
Alex Mengden, an economist at the Tax Foundation, notes that differences in how European countries tax labour matter more than personal income tax rates alone. The overall burden, including social security contributions and family benefits, determines what workers actually keep.
These disparities have real-world implications. In Germany, for instance, the high burden on single workers contrasts sharply with the generous treatment of families, a factor that may influence labour market decisions and family formation. Meanwhile, in countries like Romania and Lithuania, the high deduction rates for single earners could affect competitiveness and migration patterns within the EU.
For a broader perspective on labour market challenges, see our coverage of heat stress threatening 130 million workers across Europe and the impact of pay cuts at Porsche's Leipzig plant.
