European commission annual report on taxation 2026 released

The European Commission's Directorate-General for Taxation and Customs Union released its 2026 Annual Report on Taxation, completed in July 2026. The report highlights that citizens across the European Union prioritize the fight against tax evasion and avoidance as their primary concern. This sentiment is strongest in France, Cyprus, Portugal, and Finland, while Estonia stands out as the only member state favoring the prevention of double taxation. Data shows that the EU tax-to-GDP ratio rose to 39.4% in 2024, with 22 member states reporting increases. Over the past decade, tax mixes have shifted toward capital taxes, while environmental and property taxes have declined. Additionally, member states reported 399 tax reforms in 2025. The report also notes that high marginal effective tax rates in countries like Belgium, Germany, and the Netherlands may reduce incentives for extra labor among high-income earners.