Indicators calculated before 2018 are based on the policy rules and parameters that were in place on the 1st of July of the selected year. Indicators calculated from 2018 onwards are based on the policy rules and parameters that were in place on the 1st of January of the selected year (7th of April for the United Kingdom and 1st of April for New Zeland)

The 1st annual release of the OECD tax-benefit indicators is in February. It includes new indicators for year T-1 for the majority of OECD and EU countries, plus updates for previous years. The 2nd release is in May and includes updates for all available years plus new indicators for year T-1 for the countries that could not be included in the first release.The 3rd and final annual release is in November. It includes updates for all previous years and new indicators for year T-1 for the countries that could not be included in the second release.

1. Incomes in and out of work are calculated at the family level.
2. The numerator measures the change in tax liabilities and benefit entitlements when one family member moves into work while the family claims social assitance and/or Guaranteed Minimum Income (GMI) benefits. The denominator measure the gross earnings in the new job of the family member who took up employment.
3. Guaranteed Minimum Income (GMI) benefits are always included in the calculations subject to relevant income and eligibility conditions. Where GMI benefit entitlements change over time, calculations refer to the 2nd month of benefit receipt. Where benefit receipt is subject to activity tests or other behavioural requirements, e.g. active job-search and being available for work, it is assumed that these requirements are met by all household members.
4. If relevant for the calculation of benefit entitlements, earnings in the previous job are assumed to be the same as those in the new job.
5. Calculations assume entry into full-time work.
6. For couples, if the partner of the person who is moving into work is out of work, it is assumed that they do not receive any contributory benefits, e.g. because they have expired, but they do meet any behavioural requirements needed to qualify for other types of non-contributory benefits.
7. Family and in-work benefits are included in the calculations subject to relevant income and eligibility conditions. Calculations for families with children assume two children aged 4 and 6. Neither childcare benefits nor childcare costs are considered. Adults are aged 40, are both out of work, and are assumed to have full work capacity.
8. If housing benefits are included in the calculations, these are calculated assuming that the household is renting a private accommodation with a rent equal to 20% of the average wage. Rent levels are the same for all family types..
9. Where benefit rules are not determined on a national level but vary by region or municipality, results refer to a “typical” case (e.g. Michigan in the United States, the capital in some other countries). A full description of the policies included in the calculations for each country is available here.
10. For a detailed description of the assumptions underlying the OECD Tax-Benefit model and the related policy indicators, please see the methodology document.
11. For more information, visit the project webpage or contact the OECD tax-benefit team.