Austria vs Italy
Tax Rate Comparison
Enter your income below for a personal tax estimate, then scroll down for full rate breakdowns.
๐ฐ Personal Income Tax Calculator
Enter your income to see your estimated annual tax liability in each country โ side by side.
๐ฆ๐น Austria โ Municipal & Church Taxes
Austria's 9 Bundeslรคnder (states) do not set separate income tax rates โ this is federal. However, municipalities levy Kommunalsteuer (municipal payroll tax) at 3% on wages paid by employers, and a Dienstgeberabgabe (employer levy). Church tax (Kirchenbeitrag) is compulsory for registered Catholics at ~1% of income. Vienna and other large cities have additional levies. Property tax (Grundsteuer) rates are set by municipalities within federal parameters.
๐ฎ๐น Italy โ Regional & Municipal Income Taxes
Italy's 20 regions levy addizionale regionale at 0.7%โ3.33%. Municipalities add addizionale comunale up to 0.9%. Sicily, Sardinia, and Trentino-Alto Adige have special autonomous status. IRAP (regional business tax) at ~3.9% applies to businesses. Local property tax (IMU) is set by municipalities on investment properties. Cumulative marginal rates can exceed 50%.
Austria vs Italy: Key Tax Differences (2026)
๐ฐ Income Tax: ๐ฆ๐น Austria has a higher top income tax rate (0โ55% vs 23โ43%). ๐ฎ๐น Italy is more favourable for high earners.
๐ VAT/Sales Tax: Italy has a higher consumption tax (10โ20% vs 4โ22%).
๐ข Corporate Tax: ๐ฆ๐น Austria offers a lower corporate rate (21% vs 24%), which can influence business location decisions.
๐ Capital Gains: ๐ฎ๐น Italy taxes investment gains at a lower rate (26% vs 27.5%), benefiting investors.