WorldTax Compareโ† All Comparisons

Italy vs Latvia
Tax Rate Comparison

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

๐Ÿ‡ฎ๐Ÿ‡น Italy
vs
๐Ÿ‡ฑ๐Ÿ‡ป Latvia
Tax Year:

๐Ÿ’ฐ Personal Income Tax Calculator

Enter your income to see your estimated annual tax liability in each country โ€” side by side.

Enter your annual income above to see your personal tax comparison โ†’
Individual Income Tax (Top Marginal Rate)
Top Income Tax Rate
23โ€“43%
3-bracket IRPEF reform targeting completion
No change
20โ€“31%
31% top; NATO spending affecting fiscal balance
No change
VAT / GST / Sales Tax
VAT / GST / Sales Tax
4โ€“22%
Digital economy VAT rules tightening
No change
12โ€“21%
21% standard maintained
No change
Corporate Tax Rate
Corporate Tax Rate
24%
Investment incentive rate (20%) extended
No change
20%
20% distributed profits; Pillar Two active
No change
Capital Gains Tax
Capital Gains Tax
26%
Flat 26% maintained
No change
20%
20% as income
No change
Social Security & Payroll
Social Security / Payroll
~40%
Pension reform adjustments continuing
No change
~35.09%
Contribution rates stable; pension II pillar growing
No change
State, Regional & Local Taxes

๐Ÿ‡ฎ๐Ÿ‡น Italy โ€” Regional & Municipal Income Taxes

Italy's 20 regions levy addizionale regionale at 0.7%โ€“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%.

๐Ÿ‡ฑ๐Ÿ‡ป Latvia โ€” Municipal Income Tax

Latvia's 119 municipalities levy a local income tax portion โ€” 80% of income tax goes to municipalities, 20% to the state. The effective split means municipalities directly benefit from local earnings. Property tax (nekustamฤ ฤซpaลกuma nodoklis) is set by municipalities at 0.2%โ€“3% of cadastral value. Latvia uses the progressive income tax system introduced in 2018 (replacing the flat 23%). Vehicle tax and business risk duty are national.

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

Italy vs Latvia: Key Tax Differences (2026)

๐Ÿ’ฐ Income Tax: ๐Ÿ‡ฎ๐Ÿ‡น Italy has a higher top income tax rate (23โ€“43% vs 20โ€“31%). ๐Ÿ‡ฑ๐Ÿ‡ป Latvia is more favourable for high earners.

๐Ÿ›’ VAT/Sales Tax: Italy has a higher consumption tax (4โ€“22% vs 12โ€“21%).

๐Ÿข Corporate Tax: ๐Ÿ‡ฑ๐Ÿ‡ป Latvia offers a lower corporate rate (20% vs 24%), which can influence business location decisions.

๐Ÿ“ˆ Capital Gains: ๐Ÿ‡ฑ๐Ÿ‡ป Latvia taxes investment gains at a lower rate (20% vs 26%), benefiting investors.

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