Estonia vs Italy
Tax Rate Comparison
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๐ฐ Personal Income Tax Calculator
Enter your income to see your estimated annual tax liability in each country โ side by side.
๐ช๐ช Estonia โ Local Income Tax Supplement
Estonia's 79 local governments levy a local income tax supplement of 11.4% of taxable income (2024), collected alongside the national 20% income tax. Together these form the effective total income tax. Estonia's unique fully distributed profit taxation system means companies pay no corporate income tax on retained earnings โ only on distributed profits (dividends). This has driven significant foreign investment. Land tax (maamaks) is levied at 0.1%โ2.5% of assessed land value by municipalities.
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%.
Estonia vs Italy: Key Tax Differences (2026)
๐ฐ Income Tax: ๐ฎ๐น Italy has a higher top income tax rate (22% vs 23โ43%). ๐ช๐ช Estonia is more favourable for high earners.
๐ VAT/Sales Tax: Estonia has a higher consumption tax (9โ24% vs 4โ22%).
๐ข Corporate Tax: ๐ช๐ช Estonia offers a lower corporate rate (22% vs 24%), which can influence business location decisions.
๐ Capital Gains: ๐ช๐ช Estonia taxes investment gains at a lower rate (22% vs 26%), benefiting investors.