The Tax Brief real effective rates for 111+ countries — bi-weekly, free.
HEAD-TO-HEAD TAX COMPARISON · 2026

COUNTRY A Norway VS COUNTRY B Italy

Side-by-side analysis of income tax, effective rates, and take-home pay for Norway and Italy in 2026.

Daniel · CountryTaxCalc Updated October 2026 Tax Comparison 2026
Calculate your take-home → See all comparisons →
OVERVIEW
On 2026 rules, Norway is cheaper than Italy at every tested wage level from €50,000 to €150,000, and the gap widens with income (Italy figures: Rome resident, including Lazio regional and Roma municipal surcharges; Norway figures at NOK 11.8 per euro). At €50,000, Norway's effective rate of 23.9% (€11,900) is dramatically lower than Italy's 36.6% (€18,300) — Norway saves €6,400. At €100,000, Norway (€33,000, 33.0%) remains cheaper than Italy (€44,500, 44.5%) by €11,500. At €150,000, Norway (€56,500, 37.6%) is still cheaper than Italy (€69,300, 46.2%) by €12,800. Above Italy's INPS ceiling (€122,295) the marginal rates converge (about 47% in both countries), so the gap stops widening. Italy's Impatriate Regime transforms the comparison for qualifying newcomers: a 50% income exemption reduces Italy's effective rate to approximately 20% at €100,000 — well below Norway's 33.0% at that income. For investors: Norway levies 37.84% effective CGT on share gains versus Italy's 26% flat rate — Italy wins on investment taxation. Norway counters with zero inheritance tax (Italy levies 4–8% on amounts above €1M) and superior social welfare.
Section 01

The Big Picture

Top-line rates and effective take-home for a typical earner — including income tax, social contributions, and applicable surcharges.

🇳🇴
COUNTRY A
Norway
TAX RATE
22–47.4%
22% Base + Trinnskatt + 7.6% NI + Wealth Tax

22% flat base income tax; trinnskatt (step tax) 1.7%–17.8% progressive bands; trygdeavgift (NI) 7.6% on employment income (no ceiling); formuesskatt (wealth tax) 1.0% on net assets above NOK 1.9M (~€161,500), rising to 1.1% above NOK 21.5M (~€1.83M); 37.84% effective CGT on shares; no inheritance tax; worldwide income taxed

🇮🇹
COUNTRY B
Italy
TAX RATE
23–43%
IRPEF + INPS Capped + Impatriate Regime

IRPEF progressive 23–43%; regional surtax 1.23–3.33%; municipal up to 0.9%; INPS employee SS ~9.19% (effectively capped); Impatriate Regime 50% income exemption for qualifying newcomers; 7% flat tax for foreign retirees in qualifying southern municipalities; 26% CGT on investment income; worldwide income taxed. Italian figures are for a resident of Rome (Lazio); regional and municipal surcharges differ elsewhere.

TYPICAL ANNUAL DIFFERENCE
Moving from Italy → Norway at €50,000 income (Norway advantage at moderate incomes)
€6,400

That's €533/month Norway advantage at €50K (gap widens to ~€12,800 at €150K) back in your pocket

Section 02

Tax Savings by Income Level

Net take-home after all income tax, social contributions, and surcharges — for a single employee with no dependents.

GROSS INCOME
🇳🇴 NO TAX
🇮🇹 IT TAX
SAVINGS
10-YEAR
€50,000
~€11,900 (22% base + trinnskatt ~2% + 7.6% NI; effective 23.9% — NOK 590K equivalent)
~€18,300 (IRPEF + regional/municipal ~€13,700 + INPS ~€4,600; effective 36.6%)
Norway saves ~€6,400 at €50K income
€64,000
€75,000
~€21,600 (22% base + trinnskatt ~4.5% + 7.6% NI; effective 28.9% — NOK 885K equivalent)
~€31,400 (IRPEF + regional/municipal ~€24,300 + INPS ~€7,100; effective 41.8%)
Norway saves ~€9,800 at €75K income
€98,000
€100,000
~€33,000 (22% base + trinnskatt ~7.3% + 7.6% NI; effective 33.0% — NOK 1,180K equivalent)
~€44,500 (IRPEF + regional/municipal ~€34,900 + INPS ~€9,600; effective 44.5%)
Norway saves ~€11,500 at €100K income
€115,000
€150,000
~€56,500 (22% base + trinnskatt ~10.7% + 7.6% NI; effective 37.6% — NOK 1,770K equivalent)
~€69,300 (IRPEF + regional/municipal ~€57,400 + INPS capped ~€11,900; effective 46.2%)
Norway saves ~€12,800 at €150K — the gap stops widening once Italy's INPS ceiling is reached
€128,000
€100,000 — Impatriate Regime (Italy) vs standard (Norway)
Norway standard: ~€33,000 (33.0% effective); no equivalent impatriate regime
Italy impatriate (indicative, not engine-modelled): ~€19,950 (50% income exemption → only €50K taxable; effective ~20%)
Italy impatriate saves ~€13,050 vs Norway standard for qualifying newcomers
~€65,250 over 5-year impatriate regime term
💡

CountryTaxCalc.com is reader-supported. When you use our partner links, we may earn a commission at no cost to you. This helps us provide free tax calculators and comparison tools.Learn more about our affiliate partnerships

For Employers & Businesses

Deel

★ 4.7Trustpilot  Â·  8,728 reviews

Need to hire internationally or pay contractors abroad? Deel handles payroll compliance in 150+ countries. Trusted by 40,000+ companies. 4.7★ / 8,700+ Trustpilot reviews.

⚠ For employers and companies only — not for individual freelancers or employees.

Hiring Internationally? Deel Handles Compliance →

Interested in reaching this audience? Advertise on CountryTaxCalc →

🇳🇴

Norway Pros & Cons

+ PROS
  • Lower income tax at moderate incomes: Norway's 22% flat base rate combined with a low-income NI structure produces effective rates significantly below Italy's IRPEF + INPS combination at moderate earnings. At €50,000: Norway 23.9% (€11,900) versus Italy 36.6% (€18,300) — Norway saves €6,400. At €75,000: Norway 28.9% versus Italy 41.8% — Norway saves €9,800. For professionals at these income levels, Norway is substantially cheaper.
  • No inheritance tax: Norway abolished its inheritance tax in 2014. Italy levies inheritance tax (imposta di successione) at 4% for direct heirs on amounts above €1,000,000 per heir. For larger estates, Italy's inheritance tax erodes wealth accumulation. Norway's zero inheritance tax is a structural advantage for long-term family wealth planning.
  • Comprehensive social welfare: Norway's oil-funded welfare state provides universal healthcare with minimal co-pays (capped at ~€280/year), 49 weeks parental leave at 100% salary, free university education, and substantial pension entitlements. Italy's healthcare (SSN) is universal but quality varies significantly by region, and the pension system faces structural challenges. For consistent, high-quality public services, Norway is superior.
  • Politically stable, transparent governance: Norway's strong institutions, minimal corruption, and transparent administration reduce compliance burden and regulatory uncertainty. Italy's complex regulatory environment and varying regional tax enforcement add friction for international professionals and business owners.
− CONS
  • 37.84% effective CGT on shares — higher than Italy: Norway's 37.84% effective capital gains tax (1.72× factor × 22% base rate) is significantly higher than Italy's 26% flat CGT on shares, ETFs, funds, and cryptocurrency. On a €100,000 gain: Norway pays ~€37,840 versus Italy's €26,000 — Norway pays €11,840 more. For equity investors, Italy's lower CGT is a meaningful advantage.
  • Wealth tax on net assets above €161,500: Norway's formuesskatt (1.0% on net assets above NOK 1.9M/~€161,500, rising to 1.1% above NOK 21.5M/~€1.83M) has no Italian equivalent. For a Norwegian resident with €400,000 in net assets (house + savings): formuesskatt ≈ €2,385/year. This annual wealth tax compounds over time and reduces long-term wealth accumulation in ways Italy's system does not.
  • Advantage stops widening at high incomes: above Italy's INPS ceiling (€122,295) Italy's marginal rate (about 47% including local surcharges) falls to roughly Norway's top marginal rate (about 47%, with trinnskatt up to 17.8% above NOK 1,467,200). At €150,000: Norway €56,500 versus Italy €69,300 — Norway is still €12,800 cheaper.
  • No impatriate regime equivalent: Italy's Impatriate Regime provides qualifying newcomers with a 50% income exemption for 5 years — reducing effective rates to approximately 20%. Norway offers no comparable introductory tax relief. A professional choosing between relocating to Norway or Italy should model the impatriate regime savings, which over 5 years can exceed the cumulative Norway income tax advantage.
🇮🇹

Italy Pros & Cons

+ PROS
  • INPS cap flattens Italy's marginal rate at high incomes: Italy's INPS employee contribution (9.19%, +1% above €56,224) stops at the €122,295 ceiling (about €11,900/year). Above it, Italy's marginal rate with Lazio/Roma surcharges drops from about 52.6% to about 47%, level with Norway's top marginal rate, where the 7.6% NI (uncapped) keeps applying. On 2026 rules Norway is still cheaper at €150,000, by about €12,800.
  • Impatriate Regime — transformative tax relief for newcomers: Italy's 2024 Impatriate Regime provides a 50% income exemption (70% in southern Italy) for qualifying relocators who have not been Italian tax residents for 3 of the 5 preceding years. At €100,000: effective rate drops to ~20% versus Norway's standard 33.0%. Over 5 years, a qualifying €100K earner saves approximately €65,000 compared to Norway's standard rates.
  • 26% CGT — lower than Norway's 37.84%: Italy's flat 26% tax on shares, ETFs, funds, and cryptocurrency is approximately 12 percentage points lower than Norway's 37.84% effective rate. On a €100,000 gain: Italy €26,000 versus Norway €37,840. For investors with significant capital gains, Italy's lower CGT provides an annual structural advantage.
  • 7% flat tax for foreign retirees in southern Italy: Italy's 7% flat tax regime for foreign retirees in qualifying small municipalities (under 20,000 residents) in southern regions (Calabria, Campania, Sicily, Sardinia, Abruzzo, etc.) is one of the most attractive retirement tax regimes globally. Norway's retirement income is taxed as ordinary income. For retirees with foreign pension and investment income, Italy's 7% regime is far more attractive.
− CONS
  • Higher income tax at moderate incomes: At €50,000 and €75,000, Italy's IRPEF + INPS combination produces effective rates significantly above Norway. At €75,000: Italy 41.8% versus Norway 28.9% — Norway saves €9,800. For most working professionals, Norway is meaningfully cheaper through the €50,000–€150,000 income range.
  • Higher CGT than Norway but lower than some: Italy's 26% CGT on investment income, while lower than Norway's 37.84%, is still higher than Japan's 20.315% and Belgium's 0%. For investors comparing across European jurisdictions, Italy ranks mid-tier on capital gains taxation.
  • Complex impatriate regime qualification: Italy's Impatriate Regime has strict qualifying conditions — prior non-residency for 3 of 5 preceding years, qualifying employment or self-employment activity, commitment to remain at least 2 years. The regime has been updated multiple times and requires careful legal analysis. Without the regime, Italy's standard rates are not competitive with Norway at moderate income levels.
  • Regional quality variation in public services: Italy's healthcare, public infrastructure, and administrative services vary significantly by region. Northern Italy provides services approaching Norway's quality; southern regions can lag substantially. Norway's services are uniformly high quality across all regions.
FAQ

Frequently Asked Questions

Which country is cheaper — Norway or Italy?

For wage earners on standard rules, Norway is cheaper at every tested level on 2026 rates: Norway saves €6,400 at €50K, €11,500 at €100K and €12,800 at €150K (Italy figures for a Rome resident). Under Italy's Impatriate Regime: Italy saves approximately €13,050 vs Norway standard rates at €100K. Without the impatriate regime, Norway wins on wages, while Italy wins on investment taxation (26% vs 37.84%).

What is Norway's capital gains tax rate vs Italy's?

Norway: 37.84% effective on share gains (1.72× upward factor × 22% base rate). Italy: 26% flat on capital gains, dividends, and investment income. Norway's CGT is approximately 12 percentage points higher than Italy's. On a €100,000 gain: Norway pays ~€37,840 versus Italy €26,000. For investors, Italy's 26% is meaningfully more competitive than Norway's 37.84%.

Can Italy's Impatriate Regime offset Norway's income tax advantage?

Yes — significantly. Norway's income tax advantage over Italy standard rates is approximately €6,400–€12,800/year depending on income (Norway cheaper at €50K–€150K). Italy's Impatriate Regime (indicative ~€19,950 total tax at €100,000, not engine-modelled) would be about €13,050 below Norway's standard €33,000. Over the 5-year regime, total savings vs Norway exceed €65,000 at €100K income. For qualifying individuals, Italy's impatriate regime makes it far more attractive than Norway.

Does Norway have inheritance tax?

No — Norway abolished inheritance and gift taxes in 2014. Italy levies imposta di successione at 4% (direct heirs: spouse, children) on amounts above €1,000,000 per heir; higher rates (6%–8%) for more distant heirs. For most direct family transfers below €1M per heir, Italy's inheritance tax is also minimal. Norway's zero inheritance tax is an advantage mainly for larger estates.

What is Norway's wealth tax and does Italy have one?

Norway levies formuesskatt at 1.0% annually on net assets above NOK 1,900,000 (~€161,500), rising to 1.1% above NOK 21,500,000 (~€1.83 million). Italy has no equivalent annual wealth tax on most personal assets (a historical wealth tax exists only on property held abroad and some financial assets held abroad at 0.2%). For a Norwegian resident with €500,000 in net assets: formuesskatt ≈ €3,385/year. Italy's equivalent would be approximately €0 for domestic assets.

Which country is better for retirees?

Italy wins for foreign retirees relocating from outside the EU, particularly under the 7% flat tax regime in southern municipalities. This covers all foreign pension and investment income at 7% for 10 years — far below Norway's ordinary income tax on pension income (~30–40%). Norway wins for long-term residents already in the system: Norwegian pension entitlements (25–26% of income basis, capped) are substantial and universally well-administered. For new retirees choosing where to move: Italy's 7% regime is the most attractive offer globally.

Which country is better for expats working in Europe?

Italy wins for qualifying expats through the Impatriate Regime (50% income exemption, 5 years). Norway offers no equivalent. A European professional earning €100,000 and qualifying for Italy's regime pays approximately €19,950 (20% effective) in Italy versus €33,000 (33.0%) in Norway — a €13,050 annual difference. Norway's advantage is primarily lifestyle: natural environment, political stability, and comprehensive social infrastructure for long-term residents.

How does Norway's healthcare compare to Italy's?

Both provide universal healthcare. Norway's is funded by NI contributions and oil revenue — high quality, uniformly administered, with a small annual co-pay cap (~NOK 3,000/~€280/year). Italy's SSN (Servizio Sanitario Nazionale) is universally funded but quality varies significantly by region. Northern Italy (Lombardy, Emilia-Romagna) provides care approaching Norway's quality; southern Italy can have substantially longer wait times. For reliable, consistent healthcare: Norway is superior overall.
From the brief
US$2Mnet worth that triggers the exit tax
AT€100kdeferred gains: yearly proof from July
HU1%proposed wealth tax above 1bn forints
The Tax Brief · Subscribe free

More like this, every two weeks.

Verified rates, real after-tax figures, plain English. Free.

Bi-weekly. No spam. Unsubscribe in one click.