Tax rate in country comparison: What Eurostat data shows

Germany: 24.4% – Middle field, not a top performer

The tax rate describes the share of all taxes and levies in a country's gross domestic product. For Germany, this value was 24.4 percent in 2022 – according to Eurostat data. This means: Of every euro earned by the German economy, just under 24 cents flow into public coffers through taxes and levies. For comparison: On average for the EU-27, the rate was about 25 percent. So Germany is not sitting on a European high-tax pedestal. The burden is moderate by international comparison. Germany is not a low-tax country like Ireland, but also not a stronghold like Denmark or Sweden.

The extreme differences in Europe

Looking at individual countries reveals dramatic differences – an important point when evaluating your tax burden in international comparison. Denmark leads the list at 42.2% – that's nearly double that of Ireland at just 17.1%. Sweden follows with 40%, France with 30.9%, and Austria with 28%. Germany lies between the Netherlands (25.2%) and Austria. Poland is at 21.2% and thus remains below Germany. This range – from 17.1% to 42.2% – shows how differently European countries structure their public revenues. The high rates in Scandinavia are historically shaped by generous welfare states and public infrastructure. The low rates in Ireland, in turn, are linked to targeted tax incentives for business settlement.

Why are the differences so large?

Tax rates are like snapshots – they show how much a country takes in, not how funds are distributed or what services are provided in return. Countries with high tax rates like Denmark (42.2%) finance systems such as free universities, generous unemployment insurance, and comprehensive childcare. Ireland's low rate (17.1%) works because fewer public services are provided there and more private enterprise operates. Germany, with its 24.4% rate, has a social insurance system that finances itself differently than pure taxes: contributions to health insurance, pension insurance, and unemployment insurance are partially organized as parafiscal levies. This explains why freelancers often perceive a higher overall burden than the pure tax rate suggests.

What this means for freelancers in practice

The 24.4% tax rate is only half the story. For freelancers, what matters is: not just what taxes are due, but how business expenses are accounted for, what allowances apply, and how social insurance is structured. In Germany, self-employed people can deduct business expenses in full – if they are documented. This significantly reduces taxable income. Value-added tax is an additional factor: while included in the tax rate, it often burdens freelancers as a pass-through item that must be remitted to the tax authority. Add to that: anyone who remains below a certain income threshold as a freelancer can use the small business exemption (Kleinunternehmerregelung) and save on bureaucracy. Real burden emerges only from the sum of all factors – not from the national tax rate alone.