Who pays the most income tax in the world?

5. (Tied) Japan Highest income tax rate: 50%  Average 2010 income: $53,200   Japan is the only Asian country to make the list of the top 10. Its top tax rate of 50 percent is more than double Asia’s average rate of 23 percent.   The country’s highest income tax rate is broken into two parts with a marginal rate of 40 percent, which comes into effect at around $217,000, plus an additional 10 percent municipal tax. Social security taxes range from 0.6 percent for employment insurance to 5 percent for health insurance capped at $700 a month. With Japan’s rapidly aging society, those 40 and over are also required to pay a nursing care insurance of 0.8 percent, capped at $110 a month. Other notable taxes include capital gains for stock transactions at 20 percent.   Japan’s tax revenue is the fifth lowest among OECD members, and the country has been dealing with its growing debt problems. Prime Minister Yoshihiko Noda — Japan’s sixth leader in the past five years — has seen his popularity plummet in opinion polls after proposing plans to double the country’s sales tax to 10 percent in 2014. In 2011, the tax burden for all Japanese families increased due to higher employee and employer social security contributions and a cut in tax allowances related to children, according to the OECD.   Pictured: Ueno Station in Tokyo  Photo: Kazuhiro Nogi | AFP | Getty Images

View gallery

11 photos

Rising public debt and elections in Europe and the U.S. have again raised the issue of taxes, one that's always hotly debated. Canadians, for example, are fond of moaning over their tax rate, which they regard as one of the highest in the world." But is it true? Click through to find out the 10 countries with the highest tax rates, according to the accounting firm KPMG.

View Comments (0)