Tax-to-GDP Ratios Among G7 Nations: The highest and Lowest

The tax-to-GDP ratio shows how much tax a country collects compared to the size of its economy. Among the G7 nations, France has the highest tax-to-GDP ratio, and the United States has the lowest. The average tax-to-GDP ratio is about 36% in G7 nations.

The G7 is a major economic bloc of advanced economies that have some of the highest GDPs in the world. These nations consist of France, Italy, Germany, the UK, Canada, Japan, and the U.S. The combined GDP of these countries surpassed approximately $51 trillion in 2025, according to the International Monetary Fund.

G7 Tax-to-GDP Ratios

The table below presents the tax-to-GDP ratios of G7 nations.

Country	2023 (Prov.)	2022	2021	2000
🇫🇷 France	43.8	45.8	45.1	43.7
🇮🇹 Italy	42.8	42.8	42.5	40.5
🇩🇪 Germany	38.1	39.6	39.8	36.4
🇬🇧 United Kingdom	35.3	35.4	34.2	32.7
🇨🇦 Canada	34.8	33.8	34.8	34.7
🇯🇵 Japan	–	34.4	33.9	25.3
🇺🇸 United States	25.2	27.6	26.7	28.3

The data is sourced from the Organisation for Economic Co-operation and Development (OECD).
Revenue Statistics 2024.
As the 2023 statistics are provisional, the 2022 values have been used for the analysis.

What is the tax-to-GDP ratio?

The tax-to-GDP ratio indicates how much the government collects in taxes compared to the total output (GDP) of a country. A higher ratio shows that a country collects much of its revenue in the form of taxes. Taxes play a key role in determining the government expenditures on healthcare, education, and social security benefits. Developed nations tend to have higher tax-to-GDP ratios, which contribute to their strong social security systems and better public services.

France Leads the G7 in Tax-to-GDP Ratio

France has the highest tax-to-GDP ratio among G7 countries at 46%. This means the government collects a large share of the country’s income in taxes. This money helps the country fund public services like healthcare, education, and social programs.

With a total GDP of around $3.2 trillion, France’s tax revenue amounts to approximately $1.5 trillion. In comparison, the United States has a lower tax-to-GDP ratio of 28%, but it collects around $8.5 trillion in taxes due to its massive GDP size of $30 trillion.

United States Has the Lowest Tax-to-GDP Ratio in the G7

The U.S. has the lowest tax-to-GDP ratio among the G7 at 28%, meaning its tax burden is lower. According to the OECD report, the United States ranked 32^nd out of 38 OECD countries in terms of the tax-to-GDP ratio in 2023. Additionally, the tax-to-GDP ratio in the United States decreased by 2.4 percentage points from 27.6% in 2022 to 25.2% in 2023.

However, the US has the largest economy globally, which has surpassed $30 trillion. Despite this lowest tax-to-GDP ratio, the United States collects a much higher amount in taxes compared to other G7 nations. Additionally, due to lower taxes compared to other G7 nations, the country attracts lots of foreign investment.

Why a High Tax-to-GDP Ratio Matters

A higher tax-to-GDP ratio often means a country can provide better public services to its residents. Countries that collect more tax can invest in healthcare, education, and infrastructure. While high taxes can sometimes feel like a burden, they also help create a stable economy by funding important programs.

For instance, France’s high tax revenue allows it to offer strong social benefits. Germany and Italy, with tax-to-GDP ratios of 39% and 43%, also invest heavily in social programs and infrastructure to support their economies.

Conclusion

The G7 countries take different approaches to taxation. France collects the most tax compared to its economy, which helps fund better public services. A higher tax-to-GDP ratio can make the economy more stable, but it’s also important not to overtax businesses and individuals. Countries with lower taxes, like the U.S. and Canada, encourage businesses to grow and invest.