Corporate Tax Rates Around the World 2018

Section: Members Highlights / Tax Facts / WTA Blog
5 December 2018 | Tax Foundation / United States
United States


Tax Foundation’s latest study compares corporate tax rates around the world.

In 1980, corporate tax rates around the world averaged 46.63 percent, and 38.84 percent when weighted by GDP.

Since then, countries have realized the negative impact corporate taxes have on business investment. Now, in 2018, the average corporate tax rate is 26.47 percent, and 23.03 when weighted by GDP.

The average top corporate rate among EU countries is 21.68 percent, 23.69 percent in OECD countries, and 63 percent in the G7.

The worldwide average statutory corporate tax rate has consistently decreased since 1980, with the largest decline occurring in the early 2000s.

the worldwide distribution of statutory corporate income tax rates, 1980-2018

Declines have been seen in every major region of the world including in the largest economies.

The recent tax reform in the United States brought the statutory corporate income tax rate from among the highest in the world closer to the middle of the distribution.

Europe has the lowest regional average rate, at 18.38 percent (25.43 percent when weighted by GDP). Conversely, Africa has the highest regional average statutory rate, at 28.81 percent (28.39 percent weighted by GDP).

The average has declined the most in Europe, with the 1980 average of 40.5 percent dropping to 18.38 percent by 2018.

Download The Full Study