Who Pays the Most Taxes in Italy (and Who Pays the Least)

The Distribution of Income and Taxes in Italy

The Ministry of Economy and Finance has published statistical analyses on income tax and VAT declarations filed last year for the 2022 incomes.
Who paid the most taxes last year, and who paid the least? This is a legitimate curiosity, considering that tax evasion in Italy leaves a gap that continues to grow and is scarcely reparable.

Regional Disparities in Income Declaration and Tax Payment

Where are income declarations more prevalent, and where are they less common? Which region declared higher incomes and consequently paid more taxes, and which did the opposite? Statistical data available on the “Tax Statistics” section of the MEF website offer insights into tax compliance in Italy.
Approximately 42 million taxpayers filed their declarations using the Redditi Pf or 730 forms, while some indirectly submitted theirs through the unique certification issued by withholding agents.
Let’s delve into the details of who paid more and who paid less taxes.

In terms of numbers, who paid the highest taxes? Last year, 23.8 million taxpayers used the 730 form, while 8.8 million opted for the Redditi Pf model.
The remaining taxpayers (9.4 million) were not obligated to declare, and their data were collected through the unique certifications.

Compared to the previous year, the number of taxpayers increased by 1.3%, correlating with a higher total income of €970.2 billion, a 6.3% increase from the previous year.
The average total income per taxpayer stands at €23,650.

Regional Disparities in Tax Revenues

Where were the most taxes paid? The average total income varies across regions, with Lombardy being the wealthiest, boasting an average income of €27,890 (thus being the region with the highest tax contribution).
Conversely, Calabria has the lowest average income at €17,160 (therefore, the region with the lowest tax revenue).

Who are the wealthiest workers?

It’s worth noting that employees and pensioners account for 83% of the declared income.
While they contribute the most to tax revenues collectively, they are not necessarily the wealthiest groups.

On average, the self-employed are the wealthiest in Italy (at least in 2022), with an average income of €64,670, followed by employees with €22,280, and pensioners with €19,750.

Biggest VAT Contributors

The statistics also cover taxpayers who filed VAT declarations in 2023 for the 2022 tax year.
There was a slight increase in VAT declarations (0.6% more than the previous year).
Interestingly, of the 4.2 million contributors, approximately half are from the Lazio and Lombardy regions.