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United States vs Italy
Tax Rate Comparison

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

🇺🇸 United States
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
10–37%
TCJA provisions extended; no sunset
No change
23–43%
3-bracket IRPEF reform targeting completion
No change

VAT / GST / Sales Tax

VAT / GST / Sales Tax
0–11%
No federal sales tax; state avg ~6–9%
No change
4–22%
Digital economy VAT rules tightening
No change

Corporate Tax Rate

Corporate Tax Rate
21%
Federal flat; proposals to raise to 28% stalled
No change
24%
Investment incentive rate (20%) extended
No change

Capital Gains Tax

Capital Gains Tax
0–20%
+ 3.8% NIIT; thresholds inflation-adjusted
No change
26%
Flat 26% maintained
No change

Social Security & Payroll

Social Security / Payroll
~15.3%
SS wage base ~$180,000 est. 2026
No change
~40%
Pension reform adjustments continuing
No change
State, Regional & Local Taxes

🇺🇸 United StatesState & Local Taxes

The U.S. has 50 states each setting their own income tax (0%–13.3%). California tops at 13.3%, while Texas, Florida, and Nevada levy no state income tax. NYC adds its own income tax (up to 3.876%). Sales taxes vary from 0% (Oregon) to over 11% combined. Property taxes are primarily local. Some states like Washington have introduced capital gains levies.

🇮🇹 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.

United States vs Italy: Key Tax Differences (2026)

💰 Income Tax: 🇮🇹 Italy has a higher top income tax rate (10–37% vs 23–43%). 🇺🇸 United States is more favourable for high earners.

🛒 VAT/Sales Tax: Italy has a higher consumption tax (0–11% vs 4–22%).

🏢 Corporate Tax: 🇺🇸 United States offers a lower corporate rate (21% vs 24%), which can influence business location decisions.

📈 Capital Gains: 🇺🇸 United States taxes investment gains at a lower rate (20% vs 26%), benefiting investors.

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