France Becomes Europe's Highest Taxed Country Again in 2025

In 2025, France reclaimed the top spot as the European Union's highest taxed country, with its tax burden reaching 46% of GDP, according to Eurostat. This represents an increase from 45.1% in 2024 and surpasses the EU average tax rate of 40.7%. Denmark and Belgium follow closely with tax rates of 45.1% and 44.7%, respectively, while Ireland has the lowest rate at 22.7%.

This tax burden includes both mandatory taxes and social contributions. The French National Institute of Statistics and Economic Studies (Insee) reports a lower figure of 43.6%, as it excludes certain tax credits and social contributions considered by Eurostat.

France's tax rate has seen significant fluctuations over recent years. It peaked at 48.5% in 2017 during François Hollande’s presidency, then gradually decreased to 45.1% in 2024 due to tax reduction efforts by President Emmanuel Macron, including eliminating the wealth tax and the housing tax. However, the trend reversed recently, with rising rates post-COVID-19 and plans for further tax increases. From 2024 to 2026, France is projected to increase taxes by nearly 37 billion euros, with an additional 54 billion euros planned by 2027.

Among EU countries, 19 saw tax increases from 2024 to 2025; Germany had the largest rise, moving from 40.3% to 41.4%. In contrast, Denmark and Belgium experienced slight declines despite still holding high tax positions.

This resurgence in France's tax burden signals an end to prior tax reduction policies and reflects the government's intent to bolster budget revenues amid economic challenges. It marks France’s fifth time in a decade topping Europe’s tax rankings, underscoring the country's distinctive fiscal approach within the EU.