The EU’s tax-to-GDP ratio rose to 39.4% in 2024, up slightly from a decade-low in 2023, the European Commission said in its annual report on taxation.
The report covers taxation policies across all EU member states, reviews recent trends in national tax systems and sets out areas where compliance could be improved, the Commission announced on Friday.
Over the past decade, the overall tax mix has shifted away from consumption-based taxes towards capital-based taxes, while the share of labour taxes has increased in countries pursuing fiscal consolidation.
Corporate income tax and personal income tax have taken a larger share of revenues over the same period, while environmental and property taxes have declined.
Twenty-two member states recorded an increase in their tax-to-GDP ratio in 2024.
Labour taxes — including social contributions — remained the biggest source of revenue, accounting for 51.5% of total tax receipts, followed by consumption taxes at 26.8% and capital taxes at 21.6%.
Hundreds of reforms reported for 2025
Member states reported a total of 399 tax reforms for 2025, the Commission said.
The EU’s Technical Support Instrument (TSI), a programme that provides expertise to help member states design and implement reforms, supported efforts to modernise tax administrations and improve compliance, the report found.
It said 22% of TSI projects focused on improving tax compliance and 21% on digitalising revenue administration.
