WorldTax Compareโ† All Comparisons

Italy vs Japan
Tax Rate Comparison

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

๐Ÿ‡ฎ๐Ÿ‡น Italy
vs
๐Ÿ‡ฏ๐Ÿ‡ต Japan
Tax Year:

๐Ÿ’ฐ Personal Income Tax Calculator

Enter your income to see your estimated annual tax liability in each country โ€” side by side.

Enter your annual income above to see your personal tax comparison โ†’
Individual Income Tax (Top Marginal Rate)
Top Income Tax Rate
23โ€“43%
3-bracket IRPEF reform targeting completion
No change
5โ€“45%
Basic deduction increase for low earners
No change
VAT / GST / Sales Tax
VAT / GST / Sales Tax
4โ€“22%
Digital economy VAT rules tightening
No change
8โ€“10%
No rate change; digital services tax under review
No change
Corporate Tax Rate
Corporate Tax Rate
24%
Investment incentive rate (20%) extended
No change
~30.62%
Global Minimum Tax applies to large MNCs
No change
Capital Gains Tax
Capital Gains Tax
26%
Flat 26% maintained
No change
20.315%
Expanded NISA (tax-free investment) ongoing
No change
Social Security & Payroll
Social Security / Payroll
~40%
Pension reform adjustments continuing
No change
~28.5%
Coverage expansion to part-time workers ongoing
No change
State, Regional & Local Taxes

๐Ÿ‡ฎ๐Ÿ‡น Italy โ€” Regional & Municipal Income Taxes

Italy's 20 regions levy addizionale regionale at 0.7%โ€“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%.

๐Ÿ‡ฏ๐Ÿ‡ต Japan โ€” Prefectural & Municipal Inhabitant Tax

Japan's 47 prefectures levy inhabitant tax (ไฝๆฐ‘็จŽ) at a flat 10% on top of national income tax โ€” 4% prefectural + 6% municipal. A reconstruction special income tax of 2.1% of national tax applies through 2037. Property acquisition tax and fixed asset tax (1.4% of assessed value) are levied locally. Large cities impose additional taxes on large businesses.

โš ๏ธ Disclaimer: Rates shown are standard top/headline rates for informational purposes. Actual tax liability depends on income level, residency, deductions, and tax treaties. 2025โ€“2026 data reflects announced or enacted rates and may be subject to change. Not financial or legal advice.

Italy vs Japan: Key Tax Differences (2026)

๐Ÿ’ฐ Income Tax: ๐Ÿ‡ฏ๐Ÿ‡ต Japan has a higher top income tax rate (23โ€“43% vs 5โ€“45%). ๐Ÿ‡ฎ๐Ÿ‡น Italy is more favourable for high earners.

๐Ÿ›’ VAT/Sales Tax: Italy has a higher consumption tax (4โ€“22% vs 8โ€“10%).

๐Ÿข Corporate Tax: ๐Ÿ‡ฎ๐Ÿ‡น Italy offers a lower corporate rate (24% vs 30.62%), which can influence business location decisions.

๐Ÿ“ˆ Capital Gains: ๐Ÿ‡ฏ๐Ÿ‡ต Japan taxes investment gains at a lower rate (20.315% vs 26%), benefiting investors.

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