The average worker in the United Kingdom faced a tax burden on labour income (tax wedge) of 32.3% in 2012 compared with the OECD average of 35.6%. The United Kingdom was ranked 23 of the 34 OECD member countries in this respect (in decreasing order).
Some examples of the results reflected in the Overview charts for the United Kingdom are:
- The tax burden for the single average worker decreased by 0.3 percentage points from 32.6% to 32.3% between 2000 and 2012. Between 2009 and 2012, there was a decrease of 0.1 percentage point.
- The corresponding figures for the OECD were a decrease of 1.1 percentage points from 36.7% to 35.6% between 2000 and 2012 and an increase of 0.6 percentage points between 2009 and 2012.
- The tax burden for the one-earner couple with 2 children at the AW level increased by 0.1 percentage point from 27.8% to 27.9% between 2000 and 2012. Between 2009 and 2012, there was an increase of 1.7 percentage points.
- The corresponding figures for the OECD were a decrease of 1.6 percentage points from 27.7% to 26.1% between 2000 and 2012 and an increase of 1.1 percentage points between 2009 and 2012.
The links below also provide a breakdown of the average and marginal tax wedges into five separate components as percentage of total labour cost:
- central income taxes,
- local income taxes,
- employee social security contributions,
- employer social security contributions, and
- family benefits.
Download the AVERAGE graphical expositon file, 2012
Download the MARGINAL graphical expositon file, 2012