IT · Europe ↔ LU · Europe
Italy vs Luxembourg: tax rates compared
Italy's income tax rate is 1.4pp higher than Luxembourg's (47.2% vs 45.8%). The 37-country average is 43.2%: both sit above it.
Verified data covers four of the six tracked tax types for both countries; every rate below is cited to its source and dated.
Income Tax
| Country | Rate | Source |
|---|---|---|
| Italy | 47.2% | Source: OECD Tax Database — Top statutory personal income tax rates · as of 2025-01-01 |
| Luxembourg | 45.8% | Source: OECD Tax Database — Top statutory personal income tax rates · as of 2025-01-01 |
| Difference | +1.4 pp | Italy higher |
Corporate Tax
| Country | Rate | Source |
|---|---|---|
| Italy | 27.8% | Source: Tax Foundation — Worldwide Corporate Tax Rates · as of 2025-01-01 |
| Luxembourg | 23.9% | Source: Tax Foundation — Worldwide Corporate Tax Rates · as of 2025-01-01 |
| Difference | +3.9 pp | Italy higher |
Italy's corporate tax rate is 3.9pp higher than Luxembourg's (27.8% vs 23.9%). The 201-country average is 22.6%: both sit above it.
VAT
| Country | Rate | Source |
|---|---|---|
| Italy | 22% | Source: PWC Worldwide Tax Summaries — Italy (Corporate, Other taxes) · as of 2026-07-13 |
| Luxembourg | 17% | Source: PWC Worldwide Tax Summaries — Luxembourg (Corporate, Other taxes) · as of 2026-01-13 |
| Difference | +5 pp | Italy higherlargest gap on this page |
Italy's VAT rate is 5pp higher than Luxembourg's (22% vs 17%). The 37-country average is 19.5%: Italy sits above it, Luxembourg sits below it.
Wealth Tax
| Country | Rate | Source |
|---|---|---|
| Italy | 0% | Source: Agenzia delle Entrate — IVIE, base imponibile e aliquota · as of 2024-01-01 |
| Luxembourg | 0% | Source: PWC Worldwide Tax Summaries — Luxembourg (Individual, Other taxes) · as of 2026-01-13 |
| Difference | 0 pp | displayed rates match |
Italy's wealth tax rate is identical to Luxembourg's — both sit at 0%. The 193-country average is 0.1%: both sit below it. Italy's figure is dated 2024-01-01 and Luxembourg's 2026-01-13, so the two rates come from different data vintages.
Not covered for both countries yet: Capital Gains Tax, Crypto Tax.