Post by OECD - OCDE

The #OECD Taxing Wages 2026 report highlights an increase in effective tax rates on labour income across OECD countries in 2025, especially for households with children. The report also outlines the different tax treatment between eight household types, with a particular focus on the tax wedge, which measures the difference between labour costs to the employer and the take-home pay of the employee as a percentage of labour costs. A higher tax wedge tends to reduce incentives to work and hire by reducing take‑home pay and increasing employers’ labour costs. Further insights from the report include: ➡️ Real wages and post‑tax incomes rose in most OECD countries, with 35 reporting real wage growth in 2025. ➡️ Tax wedges increased on average across all eight household types. ➡️ The tax wedge for single workers making the average wage went up for the fourth time in a row, reaching its highest level in the OECD since 2016. A special feature in the report shows that OECD labour tax systems tend to be most progressive (meaning taxes increase as salaries increase) for households at lower earnings levels and with children, due to the impact of tax reliefs and cash transfers. Learn more in the new OECD Taxing Wages 2026 report ➡️ https://brnw.ch/21x1OVu #OECDtax