Perceptions of tax fairness in Europe: Are the rich paying their way?

Taxes are an important measurement for governments to salary for nationalist services for illustration healthcare and education.

In 2023, nan full taxes collected by each EU governments made up astir 40% of nan full worth of equipment and services produced, known arsenic nan tax-to-GDP ratio.

Yet contempt nan pivotal domiciled of taxes, astir 1 successful 4 group successful nan EU judge that citizens successful their state do "not astatine all" salary taxes successful proportionality to their income aliases wealth.

But really do views connected taxation fairness disagree crossed Europe? A 2025 Eurobarometer study, which gathered responses from much than 25,000 people, asked citizens crossed nan EU: "Do group salary taxes successful proportionality to their income and wealthiness successful your country?”

Taxes are paid ‘to a ample extent’ successful statement pinch wealth

Across nan EU, 1 successful 5 respondents said that this is nan lawsuit ‘to a ample extent’. The proportionality of group who responded successful this measurement ranges from conscionable 8% successful Latvia to 38% successful Finland.

At slightest 3 successful 10 group successful Luxembourg (36%), Denmark (32%), Austria (32%), Malta (31%), Germany (31%), and Greece (30%) besides judge that group successful their countries salary taxes ‘to a ample extent’ successful proportionality to their income and wealth.

On nan different hand, Lithuania, Poland, and Czechia (each 9%) are very adjacent to Latvia, pinch fewer group responding to nan mobility successful this way.

Among nan EU’s larger economies, Italy shows nan lowest stock for this view, astatine 12%. The cognition is besides beneath nan EU mean successful Spain (17%) and France (19%).

Taxes are paid ‘to immoderate extent’ successful statement pinch wealth

About half of respondents successful nan EU (51%) felt that group salary taxes ‘to immoderate extent’ successful proportionality to their income and wealth. This stock ranges from 33% successful Hungary and Croatia to 59% successful Cyprus. 

Most countries autumn betwixt 45% and 55%, meaning this reply is nan astir communal successful 23 retired of 27 EU countries. The exceptions are Hungary, Croatia, Estonia, and Bulgaria, wherever nan ‘not astatine all’ consequence is higher than ‘to immoderate extent’.

Four countries guidelines retired for beardown ‘not astatine all’ responses

Around 1 successful 4 group successful nan EU (24%) judge that citizens successful their state do ‘not astatine all’ salary taxes reasonably successful proportionality to their income and wealth. In 4 countries, almost half of respondents stock this view: Hungary (50%), Croatia (48%), Estonia (47%), and Bulgaria (46%).

The adjacent highest is Slovakia (38%), showing that these 4 guidelines retired arsenic an outlier group. Beyond them, much than 3 successful 10 group successful Latvia and Lithuania (both 36%), Poland (33%), Portugal, Slovenia, and Czechia (each 32%) besides consciousness that taxes are not collected fairly, arsenic citizens do ‘not astatine all’ salary according to their income and wealth. 

Italy and Spain are adjacent to this level arsenic well, some astatine 39%.

In contrast, nan 2 Nordic countries, Denmark (7%) and Finland (10%), grounds nan lowest ‘not astatine all’ perception, some beneath 10%.

These results bespeak clear geographical trends successful really group comprehend taxation fairness. In general, Nordic and Western European countries definitive much affirmative views, while Southern European nations are much divided. In contrast, Eastern European EU members thin to spot their taxation systems arsenic little fair. 

In nan EU, 5% of respondents said they do not know, while nan stock of unsure answers reaches 9% successful immoderate countries.

What shapes people’s views connected taxation fairness?

“Where citizens comprehend procedures arsenic transparent and rules arsenic applied arsenic to all, taxation morale and voluntary compliance thin to beryllium strong,” said economical psychology professor Erick Kirchler from nan University of Vienna.

He noted that successful countries specified arsenic Denmark and Finland, which consistently rank among nan world leaders successful governance and integrity, citizens study a peculiarly precocious cognition of fairness successful nan taxation system.

“In these contexts, taxpayers acquisition a clear ‘value for money’. High-quality public services — specified arsenic childcare, wellness care, education, and information — make nan return connected taxes visible,” he added.

Kirchler pointed retired that little organization spot and weaker administrative capacity, arsenic recovered successful parts of Eastern and Southern Europe, often undermine these perceptions.

Finland vs. Poland

Dr Fabian Kalleitner from Ludwig Maximilian University of Munich underlined that group successful Northern European countries are mostly much satisfied pinch nan distribution of income aft redistribution than group successful Southern and Eastern European countries. 

“This is not only because income differences betwixt nan apical and bottommost are smaller—although they are besides comparatively debased successful galore Eastern European countries—but besides because nan income level is higher, moreover aft accounting for differences successful purchasing power,” he said. 

“In different words, nan mediocre successful Finland and Denmark simply person higher incomes than nan mediocre successful Poland aliases Czechia.”

Kalleitner besides highlighted nan ‘actual redistributive powerfulness of taxes,’ referring to a government’s expertise to usage its taxation strategy to power nan distribution of income and wealth.

 “Countries pinch debased taxation redistribution, specified arsenic Estonia, Latvia, aliases Hungary, show little levels of [fairness] statement than high-redistribution countries specified arsenic Austria, Finland, aliases Denmark,” he said.

Role of taxation complexity

Professor Caren Sureth-Sloane from Paderborn University emphasised nan domiciled of taxation complexity.

She noted that taxation systems successful Northern European countries are mostly seen arsenic little complex, and this is often linked to higher levels of spot successful some nan authorities and nan taxation system.

“Nordic countries connection their citizens extended accusation connected taxation payments of individuals, they are very transparent successful this respect,” she said. 

Dr Sabina Kołodziej, from Kozminski University, added: “High perceptions of taxation fairness successful Nordic countries tin beryllium attributed to beardown organization value and precocious levels of societal trust. These factors foster voluntary compliance and alteration effective redistribution, resulting successful much adjacent societies pinch debased levels of poorness and inequality.”