A second consecutive year of high inflation pushed up labour taxes across OECD countries in 2023, according to the latest edition of Taxing Wages.

OECD analysis focuses on cross-country comparison of the labour tax wedge – defined as total taxes on labour paid by both employees and employers, minus family benefits, as a percentage of labour costs. It looks at eight different household types, varying by income level and household composition. For a single worker earning the average wage, the average tax wedge across OECD countries was 34.8%, ranging from 53% in Belgium to 0% in Colombia in 2023.

This year’s edition includes a special feature that examines the gender implications of differences in the tax wedge of first and second earners. Specifically, the report analyses the tax rates on second earners in married couples, more than 75% of whom are women in almost all OECD countries.