Lithuania vs Italy
Tax Rate Comparison
Enter your income below for a personal tax estimate, then scroll down for full rate breakdowns.
๐ฐ Personal Income Tax Calculator
Enter your income to see your estimated annual tax liability in each country โ side by side.
๐ฑ๐น Lithuania โ Municipal Income Tax Supplement
Lithuania's 60 municipalities levy a local supplement on income tax โ 68% of PIT revenue goes to municipalities, creating strong local fiscal capacity. Property tax (nekilnojamojo turto mokestis) is set at 0.5%โ3% by municipalities on commercial property and at 0.5%โ2% on residential property above โฌ150K value. Vehicle registration tax is national. Lithuania switched to a progressive income tax in 2019, having previously had a flat 15% rate.
๐ฎ๐น Italy โ Regional & Municipal Income Taxes
Italy's 20 regions levy addizionale regionale at 0.7%โ3.33%. 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%.
Lithuania vs Italy: Key Tax Differences (2026)
๐ฐ Income Tax: ๐ฎ๐น Italy has a higher top income tax rate (20โ32% vs 23โ43%). ๐ฑ๐น Lithuania is more favourable for high earners.
๐ VAT/Sales Tax: Italy has a higher consumption tax (9โ21% vs 4โ22%).
๐ข Corporate Tax: ๐ฑ๐น Lithuania offers a lower corporate rate (15% vs 24%), which can influence business location decisions.
๐ Capital Gains: ๐ฑ๐น Lithuania taxes investment gains at a lower rate (20% vs 26%), benefiting investors.