The overall tax-to-GDP ratio, meaning the sum of taxes and net social contributions as a percentage of GDP, stood
at 40.0% in the European Union (EU) in 2016, an increase compared with 2015 (39.7%). In the euro area, tax
revenue accounted for 41.3% of GDP in 2016, slightly up from 41.2% in 2015. The tax-to-GDP ratio is therefore on
the increase again in both zones after a slight decline recorded in the previous year.
This information comes from an article issued by Eurostat, the statistical office of the European Union. Tax
indicators are compiled in a harmonised framework based on the European System of Accounts (ESA 2010),
enabling an accurate comparison of the tax systems and tax policies between EU Member States.
Highest ratio of taxes on production and imports in Sweden,
of taxes on income and wealth in Denmark and of net social contributions in France
Looking at the main tax categories, a clear diversity prevails across the EU Member States. In 2016, the share of
taxes on production and imports was highest in Sweden (where they accounted for 22.6% of GDP), Croatia
(19.6%) and Hungary (18.3%), while they were lowest in Ireland (8.7%), Slovakia (10.8%) and Germany (10.9%).
For taxes related to income and wealth, the highest share by far was registered in Denmark (30.0% of GDP),
ahead of Sweden (18.8%), Finland (16.5%) and Belgium (16.3%). In contrast, Bulgaria (5.4%), Lithuania
(5.7%), Romania (6.5%) and Croatia (6.6%) recorded the lowest taxes on income and wealth as a percentage of
GDP. Net social contributions accounted for a significant proportion of GDP in France (18.8%), Germany (16.7%)
and Belgium (16.1%), while the lowest shares were observed in Denmark (1.0% of GDP) and Sweden (3.3%).