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๐Ÿ‡บ๐Ÿ‡ธ United States vs ๐Ÿ‡ฎ๐Ÿ‡น Italy

US earners keep ~$21,000 more than Italy at $150k (standard rate)

2026 tax data ยท Last reviewed: April 1, 2026 ยท Source: methodology

TL;DR โ€” Key Takeaways

  • โ†’At $150,000 salary: US (avg state) take-home โ‰ˆ $111,000 vs. Italy (standard) โ‰ˆ $90,000.
  • โ†’Italy's income tax starts at 23% โ€” there's no zero-rate band for any income level.
  • โ†’INPS social security: ~9.19% employee contribution on earnings up to โ‚ฌ122,295.
  • โ†’Regional and municipal taxes add 1.2%โ€“3.3% on top of the national rate.
  • โ†’The Impatriati regime (50% income exclusion, 5โ€“10 years) can flip this comparison in Italy's favour for qualifying expats.

Net Pay at $150,000 Salary (2026)

๐Ÿ‡บ๐Ÿ‡ธ

United States

$111,000

estimated net take-home

Top rate: 37%

๐Ÿ‡ฎ๐Ÿ‡น

Italy

$90,000

estimated net take-home

Top rate: 43%

Annual delta at $150,000

๐Ÿ‡บ๐Ÿ‡ธ United States saves $21,000/year

Over 10 years at 7% compounding: $310,380 more

Key Tax Differences

Factor๐Ÿ‡บ๐Ÿ‡ธ United States๐Ÿ‡ฎ๐Ÿ‡น Italy
Top income tax rate37%43%
Effective rate at $100k18%36%
Taxation basisWorldwideWorldwide
Special regimesForeign Earned Income Exclusion (FEIE)Impatriati (New Residents) Regime, HNWI Flat Tax (โ‚ฌ200k/year)

๐Ÿ‡บ๐Ÿ‡ธ United States โ€” Key Tax Facts

  • โ†’US citizens and Green Card holders owe US tax on worldwide income regardless of where they live.
  • โ†’Federal income tax: 10%โ€“37% progressive brackets; standard deduction $16,150 for single filers (2026).
  • โ†’FICA (Social Security + Medicare): 7.65% employee share on wages up to $184,500 (SS cap).
  • โ†’State income tax: ranges from 0% (Florida, Texas, Nevada) to 13.3% (California).
  • โ†’Foreign Earned Income Exclusion: up to $132,900 excluded for qualifying expats (2026).
  • โ†’Self-employed pay 15.3% self-employment tax (both sides of FICA).

Full United States tax guide โ†’

๐Ÿ‡ฎ๐Ÿ‡น Italy โ€” Key Tax Facts

  • โ†’Standard income tax: 23%โ€“43% progressive.
  • โ†’Impatriati regime: 50% income exclusion on Italian-source income for 5โ€“10 years.
  • โ†’HNWI flat tax: โ‚ฌ200,000/year covers all foreign-source income โ€” ideal for very high earners.
  • โ†’Regional and municipal taxes add approximately 1.2%โ€“3.3% on top of national income tax.
  • โ†’Employee INPS: ~9.19% on salary up to โ‚ฌ122,295; employer INPS: ~29.72%.
  • โ†’Tax residency established after 183 days or having registered domicile in Italy.

Full Italy tax guide โ†’

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Estimates assume a single filer with no dependents and no treaty benefits. Not tax advice. See methodology.