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South Africa vs Italy
Tax Rate Comparison

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

🇿🇦 South Africa
vs
🇮🇹 Italy
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
18–45%
Top rate maintained; NHI funding discussions
No change
23–43%
3-bracket IRPEF reform targeting completion
No change

VAT / GST / Sales Tax

VAT / GST / Sales Tax
16%
VAT raised to 16% from 1 April 2026 (Budget 2025)
+0.5pp vs 2025
4–22%
Digital economy VAT rules tightening
No change

Corporate Tax Rate

Corporate Tax Rate
27%
Stable; National Health Insurance funding debate
No change
24%
Investment incentive rate (20%) extended
No change

Capital Gains Tax

Capital Gains Tax
~18%
Possible review of inclusion rate
No change
26%
Flat 26% maintained
No change

Social Security & Payroll

Social Security / Payroll
~2%
NHI contribution framework being developed
No change
~40%
Pension reform adjustments continuing
No change
State, Regional & Local Taxes

🇿🇦 South AfricaProvincial & Municipal Taxes

South Africa's 9 provinces do not levy their own income tax — this is national. Municipalities levy property rates (0.5%–2.5% of assessed value/year), utilities, and refuse levies. Cape Town and Johannesburg have relatively higher municipal rates. Load-shedding prompted energy-related tax credits in recent budgets.

🇮🇹 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%.

⚠️ 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.

South Africa vs Italy: Key Tax Differences (2026)

💰 Income Tax: 🇿🇦 South Africa has a higher top income tax rate (18–45% vs 23–43%). 🇮🇹 Italy is more favourable for high earners.

🛒 VAT/Sales Tax: Italy has a higher consumption tax (16% vs 4–22%).

🏢 Corporate Tax: 🇮🇹 Italy offers a lower corporate rate (24% vs 27%), which can influence business location decisions.

📈 Capital Gains: 🇿🇦 South Africa taxes investment gains at a lower rate (18% vs 26%), benefiting investors.

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