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Italy vs Iran
Tax Rate Comparison

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

🇮🇹 Italy
vs
🇮🇷 Iran
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
23–43%
3-bracket IRPEF reform targeting completion
No change
0–35%
Fiscal pressure from oil sanctions; rate reform possible
No change
VAT / GST / Sales Tax
VAT / GST / Sales Tax
4–22%
Digital economy VAT rules tightening
No change
10%
10% standard maintained
No change
Corporate Tax Rate
Corporate Tax Rate
24%
Investment incentive rate (20%) extended
No change
25%
25% standard; sanctions create significant tax planning distortions
No change
Capital Gains Tax
Capital Gains Tax
26%
Flat 26% maintained
No change
25%
25% via income
No change
Social Security & Payroll
Social Security / Payroll
~40%
Pension reform adjustments continuing
No change
~30%
SSO; formal sector proportion low
No change
State, Regional & Local Taxes

🇮🇹 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%.

🇮🇷 IranProvincial & Municipal Taxes

Iran's 31 provinces and municipalities have limited independent taxing powers. Municipal contributions (عوارض شهرداری) are levied on construction, business licences, and various services. The Iranian National Tax Administration (INTA) administers national taxes. Significant portions of the economy operate in the informal sector or through foundations (bonyads) that have historically avoided taxation. Sanctions have severely distorted the economy and tax base. The value-added tax has been progressively expanded since 2008.

⚠️ 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.

Italy vs Iran: Key Tax Differences (2026)

💰 Income Tax: 🇮🇹 Italy has a higher top income tax rate (23–43% vs 0–35%). 🇮🇷 Iran is more favourable for high earners.

🛒 VAT/Sales Tax: Italy has a higher consumption tax (4–22% vs 10%).

🏢 Corporate Tax: 🇮🇹 Italy offers a lower corporate rate (24% vs 25%), which can influence business location decisions.

📈 Capital Gains: 🇮🇷 Iran taxes investment gains at a lower rate (25% vs 26%), benefiting investors.

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