Italy vs United Kingdom
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
🇮🇹 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%.
🇬🇧 United Kingdom — Devolved, Council & Business Rates
Scotland sets its own income tax bands (six bands; top rate 48%). Wales has limited income tax-varying powers. Northern Ireland follows UK rates. All residents pay Council Tax to local authorities (typically £1,200–£4,000+/year). Business rates are set nationally but collected locally. SDLT applies to property purchases (LBTT in Scotland, LTT in Wales).
Italy vs United Kingdom: Key Tax Differences (2026)
💰 Income Tax: 🇬🇧 United Kingdom has a higher top income tax rate (23–43% vs 0–45%). 🇮🇹 Italy is more favourable for high earners.
🛒 VAT/Sales Tax: Italy has a higher consumption tax (4–22% vs 0–20%).
🏢 Corporate Tax: 🇮🇹 Italy offers a lower corporate rate (24% vs 25%), which can influence business location decisions.
📈 Capital Gains: 🇬🇧 United Kingdom taxes investment gains at a lower rate (24% vs 26%), benefiting investors.