Luxembourg vs Italy
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
🇱🇺 Luxembourg — Municipal Business & Property Taxes
Luxembourg's 102 communes levy the Gewerbesteuer (business tax) on companies at rates set by each commune (base rate 3% + municipal multiplier 175%–400% = effective 6–10.5%), and communal income tax additionals on individuals. Luxembourg City has higher rates than rural communes. The combined corporate tax (national + municipal) ranges from ~24.9% to ~26.01%. Luxembourg is a major holding company and fund domicile jurisdiction with extensive tax treaty networks.
🇮🇹 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%.
Luxembourg vs Italy: Key Tax Differences (2026)
💰 Income Tax: 🇮🇹 Italy has a higher top income tax rate (0–42% vs 23–43%). 🇱🇺 Luxembourg is more favourable for high earners.
🛒 VAT/Sales Tax: Italy has a higher consumption tax (3–17% vs 4–22%).
🏢 Corporate Tax: 🇮🇹 Italy offers a lower corporate rate (24% vs 24.94%), which can influence business location decisions.
📈 Capital Gains: 🇮🇹 Italy taxes investment gains at a lower rate (26% vs 42%), benefiting investors.