EU tax and social contribution revenue decreased in 2020

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.

This information comes from data on taxation published by Eurostat today. This article presents some findings from the more detailed Statistics Explained article.

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.

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