INTERACTIVE TOOL · 34 COUNTRIES
Where do you stand on the Laffer curve?
The Laffer curve says: somewhere between 0% and 100% lies a tax rate that maximizes revenue – beyond that, revenue falls. Move your income and see where you stand against 33 other jurisdictions.
In 1974, economist Arthur Laffer sketched on a napkin in Washington, across the table from Donald Rumsfeld and Dick Cheney, a simple principle. At 0% tax rate, the state collects nothing; at 100% also nothing, because no one works on the books. Between those extremes lies a revenue peak.
According to CPB (Jacobs, Jongen & Zoutman, 2013, 'Over de top'), the Dutch revenue peak sits around 49%. The statutory Box 1 rate is 49.5% – right at the summit. Past 55% (Denmark 55.9%, Finland 56.95%), higher taxes yield less, not more, per Trabandt & Uhlig (2011, Journal of Monetary Economics).
This tool shows you that for your specific income. Move the amount, pick a departure and destination country, and the marker shifts across the curve. All rates come directly from national tax authorities (HMRC, IRS, BMF, Belastingdienst, Agenzia delle Entrate, and 29 others).
ascending side – more revenue
Statutory vs. regime: This comparison shows statutory top rates (apples-to-apples). Special regimes (PT IFICI, IT impatriati, ES Beckham, CY non-dom, NL 30%-ruling, GE Small Business, TH LTR-visa) often reduce the effective burden substantially but don't apply to everyone – calculate your situation in the calculator.
Official sources per country (34)
- United Arab Emirates0%yoursUAE Ministry of Finance
- Bahamas0%yoursBahamas Inland Revenue
- Monaco0%yoursService Public Monaco
- Switzerland3%yours· top 22%Eidg. Steuerverwaltung (Bund 11,5% + kanton)
- Andorra10%yoursGovern d'Andorra — Tributs (IRPF)
- Bulgaria10%yoursBulgarian NRA — flat tax
- Paraguay10%yoursSET Paraguay — territoriaal
- Singapore11.5%yours· top 24%IRAS Singapore — resident rates
- Czechia15%yours· top 23%Financial Administration Czech Republic
- Hong Kong SAR China17%yoursIRD Hong Kong — salaries tax
- Georgia20%yoursGeorgia Revenue Service
- Estonia20%yoursEMTA Estonia — flat tax
- United States22%yours· top 37%IRS — federal top rate (excl. state)
- Germany24%yours· top 47.5%BMF — Spitzensatz 45% + Soli 5,5%
- Panama25%yours· top 15%DGI Panamá — territoriaal
- France30%yours· top 49%DGFiP — barème IR + CHR 4%
- Luxembourg30%yours· top 42%Administration des Contributions Luxembourg
- Israel31%yours· top 50%Israel Tax Authority — incl. surtax
- Finland34%yours· top 57%Verohallinto — ansiotulovero
- Cyprus35%yoursCyprus Tax Department
- Malta35%yoursCommissioner for Revenue Malta
- Norway36.7%yours· top 39.7%Skatteetaten — trinnskatt
- Netherlands37%yours· top 49.5%Belastingdienst — Box 1 toptarief
- Iceland38%yours· top 46.3%Skatturinn Iceland — combined PIT
- Denmark38%yours· top 55.9%Skattestyrelsen — top-skat inkl. AM-bidrag
- United Kingdom40%yours· top 45%HMRC — additional rate
- Ireland40%yoursRevenue Ireland — PAYE rates
- Austria40%yours· top 55%BMF Austria — Einkommensteuertarif
- Italy43%yours· top 46%Agenzia delle Entrate — IRPEF + regionale
- Greece44%yoursAADE Greece — Income tax
- Spain45%yours· top 47%Agencia Tributaria (AEAT) — IRPF
- Portugal45%yours· top 53%Autoridade Tributária — IRS
- Belgium50%yours· top 53.5%SPF Finances (federaal 50% + gemeente)
- Sweden52.3%yoursSkatteverket — kommunal + statlig
Sources
- CPB Policy Brief 2013/04 – Jacobs/Jongen/Zoutman, "Over de top" – Dutch revenue-maximizing top rate at 49% (statutory 49.5% = right at the summit).
- Trabandt & Uhlig 2011, JME – "How Far Are We From The Slippery Slope? The Laffer Curve Revisited" – revenue-maximizing rate in advanced economies between 49 and 55%.
- Diamond & Saez 2011, JEP – "The Case for a Progressive Tax" – formula for optimal top rate using Pareto coefficient and behavioral elasticity.
Not advice. Research data, not prediction. Tax burden based on public statutory rates; effective burden differs through deductions and social contributions. Uncertainty band reflects the range of empirical ETI estimates (0.2 to 0.5).
Frequently asked questions
- What exactly is the Laffer curve?
- A graph describing the relationship between tax rate and tax revenue. At 0% and 100%, revenue is zero. Between them lies a peak – exact location depends on behavioral elasticity and income distribution. Empirical estimates for advanced economies land between 49% and 55%.
- How accurate are these numbers?
- Marginal rates come directly from national tax authorities (Belastingdienst for NL, BMF for DE, HMRC for UK, etc.). Curve shape is calibrated to CPB 2013 for the Netherlands and aligns with Trabandt-Uhlig 2011 for the international band. It's a directional indication, not personal tax advice.
- Why show statutory not effective rates?
- For international comparison we need apples-to-apples. Statutory rates are public and uniformly defined. Effective rates vary per person (deductions, regimes, social contributions). Special regimes like PT IFICI, IT impatriati, ES Beckham, or CY non-dom often reduce burden significantly – calculate your situation in our Freedom Score calculator.
- Is the Laffer curve real?
- The mechanical principle (0% and 100% both yield zero) is not in dispute. The only question is where the peak sits. Estimates range from 43% (high behavioral elasticity) to 73% (low elasticity, Diamond-Saez 2011). Scientific consensus: between 49% and 55% for advanced economies.
Want to see your exact numbers?
The Laffer tool shows directional position. The Freedom Score calculator computes your effective rate including all deductions, regimes, and social contributions. 3 minutes, no account, free up to the report.
Start the Freedom Score calculator