Tonga vs Italy
Tax Rate Comparison
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๐ฐ Personal Income Tax Calculator
Enter your income to see your estimated annual tax liability in each country โ side by side.
๐น๐ด Tonga โ Tonga Tax System
Tonga levies income tax at a flat 20% on income above the personal allowance. No capital gains tax. Consumption tax at 15% replaced the previous sales tax. The economy is heavily reliant on remittances (over 40% of GDP) from Tongans abroad, mainly in Australia, New Zealand and the US. Agriculture and fishing are the main domestic sectors.
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%.
Tonga vs Italy: Key Tax Differences (2026)
๐ฐ Income Tax: ๐ฎ๐น Italy has a higher top income tax rate (0โ20% vs 23โ43%). ๐น๐ด Tonga is more favourable for high earners.
๐ VAT/Sales Tax: Italy has a higher consumption tax (15% vs 4โ22%).
๐ข Corporate Tax: ๐ฎ๐น Italy offers a lower corporate rate (24% vs 25%), which can influence business location decisions.
๐ Capital Gains: ๐น๐ด Tonga taxes investment gains at a lower rate (0% vs 26%), benefiting investors.