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Italy vs India
Tax Rate Comparison

Enter your income below for a personal tax estimate, then scroll down for full rate breakdowns.

🇮🇹 Italy
vs
🇮🇳 India
Tax Year:

💰 Personal Income Tax Calculator

Enter your income to see your estimated annual tax liability in each country — side by side.

Enter your annual income above to see your personal tax comparison →

Individual Income Tax (Top Marginal Rate)

Top Income Tax Rate
23–43%
3-bracket IRPEF reform targeting completion
No change
0–30%
Zero tax slab expanded; new regime standard
No change

VAT / GST / Sales Tax

VAT / GST / Sales Tax
4–22%
Digital economy VAT rules tightening
No change
0–28%
Further GST rationalization expected
No change

Corporate Tax Rate

Corporate Tax Rate
24%
Investment incentive rate (20%) extended
No change
22–25%
Pillar Two domestic rules being finalized
No change

Capital Gains Tax

Capital Gains Tax
26%
Flat 26% maintained
No change
12.5–20%
12.5% LTCG equity; 20% property with indexation
No change

Social Security & Payroll

Social Security / Payroll
~40%
Pension reform adjustments continuing
No change
24%
New social security code implementation ongoing
No change
State, Regional & Local Taxes

🇮🇹 ItalyRegional & 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%.

🇮🇳 IndiaState, Professional & GST Variation

India's 28 states levy professional tax (up to ₹2,500/year), stamp duty on property (3%–8%), and state excise on alcohol. GST has largely unified indirect taxes but petroleum products remain state-controlled. Property tax (nagar nigam) varies by city. Maharashtra, Karnataka, and Tamil Nadu have higher professional taxes.

⚠️ Disclaimer: Rates shown are standard top/headline rates for informational purposes. Actual tax liability depends on income level, residency, deductions, and tax treaties. 2025–2026 data reflects announced or enacted rates and may be subject to change. Not financial or legal advice.

Italy vs India: Key Tax Differences (2026)

💰 Income Tax: 🇮🇹 Italy has a higher top income tax rate (23–43% vs 0–30%). 🇮🇳 India is more favourable for high earners.

🛒 VAT/Sales Tax: India has a higher consumption tax (4–22% vs 0–28%).

🏢 Corporate Tax: 🇮🇹 Italy offers a lower corporate rate (24% vs 25%), which can influence business location decisions.

📈 Capital Gains: 🇮🇳 India taxes investment gains at a lower rate (20% vs 26%), benefiting investors.

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