Tax-to-GDP Ratio

The tax to GDP ratio measures a country's total tax revenue as a share of its gross domestic product, expressing how large a country's tax collection is relative to the overall size of its economy. Under the Organisation for Economic Co-operation and Development's classification, taxes counted in the ratio are compulsory, unrequited payments to government, meaning the benefits a taxpayer receives from government are not directly proportional to what they pay in. Among OECD countries in 2024 the ratio ranged from 18.3 percent in Mexico to 45.2 percent in Denmark, and the OECD average rose from 33.7 percent in 2023 to 34.1 percent in 2024, making the ratio a standard way to compare the overall size and reach of different countries' tax systems.