BUDGET 2025

In India, the highest income tax rate is 30% for the top income bracket, with an additional surcharge of up to 37% and a 4% on the total amount, depending on the new or old tax regime.

In Budget 2023, the maximum surcharge for the new tax regime was reduced from 37% to 25%, bringing the total tax rate to 39%. Under the old tax regime, the total tax rate stands at 42.7%.

Here are 4 countries with the highest income tax rates:

Income tax rates vary from 10% to 37%, depending on earnings. The highest rate applies to earnings above $609K (approximately ₹5.3 crore). For individuals earning up to $58,000, the highest rate is 22%.

Individuals earning over £125K in the UK are subject to the highest rate of 45%. The tax rates in Scotland are higher, starting at 19% for earnings above £12,571 and 48% on income exceeding £125,140 (around ₹1.37 crore). Tax rates for those earning between £75K and £125K is 45%.

The maximum tax rate in Australia is 45% on earnings exceeding $190,000 (around ₹1.02 crore). Additionally, a 2% Medicare levy raises the effective maximum tax rate to 45.9%.

The maximum income tax rate of 45% applies to income exceeding €555,652 (approximately ₹5 crore) for married individuals, and €277,826 (around ₹2.5 crore) for single taxpayers.