Italy vs Spain: tax wedge
For a single average worker, Spain has the lighter tax wedge of the two: 40.2% of total labour cost versus 45.1% in Italy — about 4.8% apart. Italy's wedge splits into income tax 22.1%, employee social security 5.6% and employer social security 31.6%; Spain's into 15.6% / 6.5% / 30.4%. Spain leaves the worker more take-home (keeps 77.9% of gross). These are modelled OECD averages, not personal tax advice.
Source: OECD Taxing Wages. Data as of June 2026 (OECD Taxing Wages, 2023 data year).
Italy vs Spain side by side
| Measure (single worker) | Italy | Spain |
|---|---|---|
| Total tax wedge | 45.1% | 40.2% |
| Personal income tax (of gross) | 22.1% | 15.6% |
| Employee social security (of gross) | 5.6% | 6.5% |
| Employer social security (of labour cost) | 31.6% | 30.4% |
| Net personal average tax rate | 27.7% | 22.1% |
| Net take-home (USD PPP) | $38,114 | $38,064 |
| Gross labour cost (USD PPP) | $69,388 | $63,683 |
| Tax wedge — family (1 earner, 2 kids) | 33.2% | 35.5% |
| Region | Europe | Europe |
Source: OECD Taxing Wages (CC BY 4.0). Single average worker at 100% of the average wage; monetary figures USD PPP.
Where each labour-cost dollar goes
- Net take-home pay: 47.4%
- Income tax: 16.8%
- Employee social security: 4.3%
- Employer social security: 31.6%
- Net take-home pay: 52.7%
- Income tax: 12%
- Employee social security: 4.9%
- Employer social security: 30.4%
Verdict
On the OECD tax wedge for a single average worker, Spain taxes labour more lightly than Italy — a 4.8% smaller wedge as a share of total labour cost. But the wedge is a blunt comparison: it models one standard worker, ignores your actual income, family and deductions, and says nothing about what the taxes fund. The composition matters too — a country can have a similar wedge built from very different mixes of income tax versus employer contributions. Read the full pages for Italy and Spain, and try the estimator on a real salary.
Frequently asked questions
Does Italy or Spain have the lower tax wedge?
Spain has the lower tax wedge of the two: 40.2% of labour cost versus 45.1% for Italy — a gap of about 4.8% of total labour cost for a single average worker. Both are measured against the OECD average of 34.9%. These are modelled averages, not personal tax.
Which keeps more take-home pay, Italy or Spain?
Spain leaves the worker with more of their gross wage: a net personal average tax rate of 22.1% means they keep about 77.9% of gross, versus 72.3% in the other country. Note this "net rate" excludes employer social security, which still adds to the total wedge.
Why is the employer social-security difference between Italy and Spain important?
Employer social security is part of the tax wedge but never appears on the payslip: it raises the cost of employing someone without raising gross pay. Italy charges 31.6% of labour cost in employer contributions versus 30.4% in Spain. A high employer wedge means a worker on the same net pay costs the employer much more.
Should I compare Italy and Spain on the tax wedge alone?
No. The tax wedge is a model of an average single worker at 100% of the average wage — it ignores your income level, brackets, family status, deductions and what those taxes buy (healthcare, pensions, schooling). Use it as a directional signal, read each country's full page, and consult a tax adviser before relocating. Not tax advice.
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Last updated: 2026-06-29