In 2020, revenue from taxes and social contributions decreased by EUR 215 billion in the EU compared with 2019, to stand at EUR 5 531 billion. This is the first time there has been a decrease since 2009.
The overall tax-to-GDP ratio, meaning the sum of taxes and net social contributions as a percentage of gross domestic product (GDP), stood at 41.3 % in the EU in 2020, an increase compared with 2019 (41.1 %). This is due to a decrease in the numerator (nominal GDP) as a result of the COVID-19 pandemic.
Highest tax-to-GDP ratio in Denmark, France and Belgium
The tax-to-GDP ratio varied significantly between Member States in 2020, with the highest share of taxes and social contributions in percentage of GDP being recorded in Denmark (47.6 %), France (47.5 %) and Belgium (46.2 %).
At the opposite end of the scale, Ireland (20.8%) and Romania (27.2%) registered the lowest ratios.
For more information:
- Eurostat Statistics Explained article on tax revenue statistics
- Eurostat dedicated section to government finance statistics
- Eurostat database on government finance statistics