EU tax and social contribution revenue up in 2022

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 41.2% in the EU in 2022, a decrease compared with 2021 (41.5%). In the euro area, tax revenue increased in line with nominal GDP, meaning that the tax-to-GDP ratio in 2022 remained stable at 41.9%. 

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

Source dataset: gov_10a_taxag

In absolute terms, in 2022, revenue from taxes and social contributions increased by €480 billion in the EU compared with 2021, to stand at €6 549 billion.

Highest tax-to-GDP ratio in France, Belgium and Austria

The tax-to-GDP ratio varied significantly between EU countries in 2022, with the highest shares of taxes and social contributions as a percentage of GDP being recorded in France (48.0%), Belgium (45.6%) and Austria (43.6%).

Source dataset: gov_10a_taxag

At the opposite end of the scale, Ireland (21.7%), Romania (27.5%) and Malta (29.6%) registered the lowest ratios. 

Largest increase of tax-to-GDP ratio in Cyprus, largest decrease in Denmark

In 2022, compared with 2021, the tax-to-GDP ratio increased in twelve EU countries, with the largest increases being observed in Cyprus (from 34.8% in 2021 to 36.5% in 2022) and Hungary (33.9% in 2021 and 35.1% in 2022). 

Source dataset: gov_10a_taxag

In contrast, decreases were recorded in fifteen EU countries, notably in Denmark (from 48.3% in 2021 to 42.5% in 2022) and Poland (from 37.6% to 35.3%).