Tax Rate Comparison · 2026

Italy vs Austria: Tax Rates Compared

Compare Italy and Austria on income tax, corporate tax, VAT, capital gains, and social security. Top income tax: 43% (Italy) vs 55% (Austria). Includes take-home pay estimates, special regimes, and expat guidance for 2026.

Country A
Italy
Top income tax: 43%
Corporate: 24%
VAT: 22% · CGT: 26%
VS
Country B
Austria
Top income tax: 55%
Corporate: 23%
VAT: 20% · CGT: 27.5%

Full Tax Rate Comparison

Tax TypeItalyAustriaLower Rate
Top Income Tax43%55%Italy
Bottom Income Tax23%0%Austria
Corporate Tax24%23%Austria
VAT / GST22%20%Austria
Capital Gains Tax26%27.5%Italy
Social Security (Emp)9.5%18.1%Italy
Dividend Tax26%27.5%Italy
Tax Treaties9690Italy

Take-Home Pay Estimate

Illustration — €100,000 gross annual income
Italy Take-Home
€62,560
Austria Take-Home
€46,130
Annual Difference
+€16,430

Verdict

Overall Tax Burden
Italy has a lower overall tax burden
Italy scores lower on combined tax burden (34 vs 40). Top income tax: 43% vs 55% in Austria. Corporate: 24% vs 23%. For high earners and entrepreneurs, Italy can offer meaningful tax savings.

Tax System: Territorial vs Worldwide

FactorItalyAustria
Territorial TaxationNoNo
Digital Nomad VisaYesNo
Wealth TaxNoNo
CFC RulesYesYes

Special Regimes Available

CountryRegimeRate / BenefitDuration
No major special regimes for these two countries

Frequently Asked Questions

Which country has lower taxes: Italy or Austria?
Italy has a top income tax rate of 43% and corporate tax of 24%. Austria has 55% and 23% respectively. On €100k gross, estimated take-home is €62,560 in Italy vs €46,130 in Austria. Actual liability varies with deductions, residency rules, and individual circumstances.
Is Italy or Austria better for expats and digital nomads?
Italy uses a worldwide tax system. Austria uses a worldwide tax system. The best choice depends on income type, desired residency duration, and lifestyle preferences.
What is the corporate tax difference between Italy and Austria?
The statutory corporate tax rate is 24% in Italy and 23% in Austria. Effective rates can differ significantly due to deductions, loss carry-forwards, and R&D credits. Both countries may offer reduced rates or special regimes for SMEs or qualifying businesses.
Italy Full Tax Guide Austria Full Tax Guide More Tax Comparisons Special Tax Regimes
Disclaimer: Rates shown are statutory rates for 2026. Effective rates vary with deductions and individual circumstances. Not tax advice.