Income curve
This tool illustrates how the structure of the system changes as income increases. It shows how gross income is transformed into net income and how taxation evolves across different income levels.
All results are presented in euros (EUR) to ensure comparability across countries.
Results
How to use this tool
This tool examines how net income and effective taxation evolve across a range of gross salaries. Instead of calculating a single outcome, it shows how the relationship between gross and net income changes as income increases.
Select a country and define a gross income range. The chart displays two curves: one showing net income, and one showing the effective tax rate.
The purpose is not to determine a specific result, but to understand how income is transformed by taxation and contributions at different levels.
Interpreting the chart
The chart contains two elements. The first is the net income curve, which shows how take‑home income changes as gross salary increases. The second is the effective tax rate, representing the share of income that does not remain as net income.
The net income curve typically rises continuously, but not proportionally. Each increase in gross salary results in a smaller relative increase in net income.
The effective tax rate tends to increase as income rises, reflecting the combined effect of progressive taxation and contribution structures.
What the curve reveals
The curve provides a view of how the system behaves, rather than a single calculated outcome. It highlights how taxation and contributions interact with salary across different income levels.
Changes in slope may indicate thresholds such as tax brackets or contribution limits. These points reflect structural features of the system.
The widening gap between gross and net income illustrates how the total share retained decreases as income increases, even while net income continues to rise.
Scope and limitations
The results are based on simplified models and standard assumptions. Actual outcomes may differ depending on individual circumstances, specific employment conditions, and detailed tax rules.
The chart does not represent a personalised scenario. It is designed to illustrate general relationships within the system rather than provide precise or applicable figures for individual cases.