Italy vs Estonia
Tax Rate Comparison
Enter your income below for a personal tax estimate, then scroll down for full rate breakdowns.
💰 Personal Income Tax Calculator
Enter your income to see your estimated annual tax liability in each country — side by side.
Individual Income Tax (Top Marginal Rate)
VAT / GST / Sales Tax
Corporate Tax Rate
Capital Gains Tax
Social Security & Payroll
🇮🇹 Italy — Regional & Municipal Income Taxes
Italy's 20 regions levy addizionale regionale at 0.7%–3.33%. 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 — 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 — only on distributed profits (dividends). This has driven significant foreign investment. Land tax (maamaks) is levied at 0.1%–2.5% of assessed land value by municipalities.
Italy vs Estonia: Key Tax Differences (2026)
💰 Income Tax: 🇮🇹 Italy has a higher top income tax rate (23–43% vs 22%). 🇪🇪 Estonia is more favourable for high earners.
🛒 VAT/Sales Tax: Estonia has a higher consumption tax (4–22% vs 9–24%).
🏢 Corporate Tax: 🇪🇪 Estonia offers a lower corporate rate (22% vs 24%), which can influence business location decisions.
📈 Capital Gains: 🇪🇪 Estonia taxes investment gains at a lower rate (22% vs 26%), benefiting investors.