Italy vs Romania
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.
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%.
๐ท๐ด Romania โ Local & County Taxes
Romania's 41 counties (judeลฃe) and Bucharest municipality do not set income tax โ this is nationally set. Municipalities levy local taxes including property tax (impozit pe clฤdiri, impozit pe teren) and vehicle tax (impozit pe mijloace de transport). Bucharest has higher property tax coefficients than rural areas. A micro-enterprise tax regime (1% or 3% on turnover) applies to small companies instead of standard CIT. Romania has had the EU's lowest flat income tax rate at 10%.
Italy vs Romania: Key Tax Differences (2026)
๐ฐ Income Tax: ๐ฎ๐น Italy has a higher top income tax rate (23โ43% vs 10%). ๐ท๐ด Romania is more favourable for high earners.
๐ VAT/Sales Tax: Italy has a higher consumption tax (4โ22% vs 5โ19%).
๐ข Corporate Tax: ๐ท๐ด Romania offers a lower corporate rate (16% vs 24%), which can influence business location decisions.
๐ Capital Gains: ๐ท๐ด Romania taxes investment gains at a lower rate (10% vs 26%), benefiting investors.