Wealth inequality is higher in the U.S. than most other developed countries. Simply put, the rich just keep getting richer. Over the past 40 years, the wealthiest 1% of Americans saw the fastest income growth. The top 0.01% of households saw income growth nearly 27 times faster than the income of the bottom 20% of earners. The wealth gap in the U.S. is widening due to wage stagnation, rising costs of living and the decline of unions, among other factors.
Find Out: If Wealth Was Evenly Distributed Across America, How Much Money Would Every Person Have?
Read Next: 6 Big Shakeups Coming to Social Security in 2025
In the U.S. News & World Report ranking of income equality in 89 countries, the U.S. came in at No. 24. The below five countries came in on top. Let’s look at the average salary, cost of living and personal income tax rates in the countries with the highest levels of income equality.
5. Finland
- Average salary: €48,384 ($56,825)
- Cost of living: 0.8% lower than in the U.S.
- Personal income tax rate: Between 12.64% and 44.25%
Learn More: I Asked ChatGPT What Would Happen If Billionaires Paid Taxes at the Same Rate as the Middle Class
4. Switzerland
- Average salary: CHF 79,980 ($100,878)
- Cost of living: 65% higher than in the U.S.
- Personal income tax rate: 40%
3. Norway
- Average salary: 640,000 NOK ($63,518)
- Cost of living: 20.8% higher than in the U.S.
- Personal income tax rate: 22%
2. Sweden
- Average salary: SEK 506,967 ($53,289)
- Cost of living: 4.4% lower than in the U.S.
- Personal income tax rate: 52%
1. Denmark
- Average salary: DKK 395,500 ($62,244)
- Cost of living: 13.2% higher than in the U.S.
- Personal income tax rate: 55.90%
More From GOBankingRates
- 3 Luxury SUVs That Will Have Massive Price Drops in Summer 2025
- 4 Things You Should Do if You Want To Retire Early
- The 5 Car Brands Named the Least Reliable of 2025
- 10 Cars That Outlast the Average Vehicle
This article originally appeared on GOBankingRates.com: 5 Countries With the Most Wealth Equality
