Employment Tax comparison Australia, USA and UK.
The following employment income deduction percentages include the Income Tax and combined employee/employer Social Security contributions.
Tax Wedge in 2021.
- 2021: 27.1% Australia
- 2021: 28.4% USA
- 2021: 31.3% UK
- 2021: 34.6% OECD average.
Tax Wedge in 2000.
- 2000: 31.0% Australia
- 2000: 30.8% USA
- 2000: 32.6% UK
- 2000: 36.2% OECD average
Tax Wedge calculation:
Personal Income Tax + Employer and Employer Social Security Contributions less Family Benefits, as percentage of Gross Income.
Sources:
In Australia, the tax wedge for the average single worker decreased by 3.9 percentage points from 31.0% to 27.1% between 2000 and
2021.
https://www.oecd.org/tax/tax-policy/taxing-wages-australia.pdf
In the United States, the tax wedge for the average single worker decreased by 2.4 percentage points from 30.8% to 28.4% between
2000 and 2021.
https://www.oecd.org/unitedstates/taxing-wages-united-states.pdf
In the United Kingdom, the tax wedge for the average single worker decreased by 1.3 percentage points from 32.6% to 31.3% between 2000 and 2021.
https://www.oecd.org/tax/tax-policy/taxing-wages-united-kingdom.pdf
During the same period, the average tax wedge across the OECD decreased by 1.6 percentage points from 36.2% to 34.6%