Taxation in Italy
Encyclopedia
Taxation in Italy is progressive
. Currently, for year 2011, the personal income tax
ation system is as follows:
Progressive tax
A progressive tax is a tax by which the tax rate increases as the taxable base amount increases. "Progressive" describes a distribution effect on income or expenditure, referring to the way the rate progresses from low to high, where the average tax rate is less than the marginal tax rate...
. Currently, for year 2011, the personal income tax
Income tax
An income tax is a tax levied on the income of individuals or businesses . Various income tax systems exist, with varying degrees of tax incidence. Income taxation can be progressive, proportional, or regressive. When the tax is levied on the income of companies, it is often called a corporate...
ation system is as follows:
- 23% for amounts up to $15,000
- 27% for the next band from $15,000,01 to $28,000
- 38% for the next band from $28,000,01 to $55,000
- 41% for amounts between $55,000,01 and $75,000
- 43% for amounts $75,000.01 and over.