Taxes and net social contributions in the EU amounted to 40.7% of GDP in 2025, up from 40.2% the year before. In the group of 20 euro area countries reported for that period, the ratio rose from 40.7% to 41.3%. Social insurance contributions are therefore part of what this measure counts alongside taxes.
A ratio compares two quantities that can both change. It can rise if receipts grow faster than nominal GDP, without every tax rate going up. Changes in the composition of incomes can also affect the calculation, for instance when wages and profits grow at different rates.
How public services are financed matters when comparing countries. A similar need can be funded mainly by social contributions in one system but by taxes or private payments in another. To assess the position of an individual household, its income, the rules that apply to it and the benefits it receives are more informative than the EU-wide average.