Italy Income Tax Calculator 2026
Calculate your Italian taxes: IRPEF + INPS Contributions + Regional/Municipal Taxes
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Effective rate: 0%
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~10% (INPS + regional)
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Monthly: 0 EUR
Income Distribution
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Complete Guide to Italian Taxation 2026
Why use this Italian tax simulator? Italy's IRPEF system was simplified to 3 brackets in 2024, down from the previous 4-bracket structure. This simulator accounts for the generous impatriati regime offering up to 70% tax exemption for new residents, INPS social contributions, and variable regional/municipal surcharges that can add 1-3% depending on your location.
Italy has a sophisticated progressive tax system with IRPEF (Imposta sul Reddito delle Persone Fisiche) as the main income tax for individuals. This system is complemented by mandatory INPS social contributions and variable regional/municipal taxes depending on location.
IRPEF: Italian Income Tax
IRPEF is a progressive tax calculated on annual income. Since the 2024 fiscal reform, Italy has simplified its rate structure from 4 to 3 tax brackets:
- EUR 0 - 28,000: 23%
- EUR 28,001 - 50,000: 35%
- Above EUR 50,000: 43%
These rates apply marginally: only the portion of income within each bracket is taxed at the corresponding rate.
Addizionale Regionale and Comunale
In addition to national IRPEF, Italian taxpayers pay additional local taxes:
Addizionale Regionale
1.23% - 3.33%
Varies by region (e.g., Lazio 3.33%, Lombardia 1.74%)
Addizionale Comunale
0% - 0.9%
Varies by municipality (e.g., Rome 0.9%, Milan 0.8%)
INPS Contributions: Italian Social Security
INPS (Istituto Nazionale della Previdenza Sociale) manages the Italian social security system. Contributions are split between employer and employee:
| Contribution | Employee | Employer | Description |
|---|---|---|---|
| IVS (Disability, Old Age, Survivors) | 9.19% | 23.81% | Retirement and pensions |
| Assicurazione Disoccupazione | - | 1.61% | Unemployment insurance (NASpI) |
| Fondo garanzia TFR | 0.30% | - | Guarantee fund |
| INAIL (work accidents) | - | ~0.4% | Accident insurance |
| Total | ~9.5% | ~26% | ~33% total |
Detrazioni: Italian Tax Deductions
Italy offers an elaborate system of detrazioni (deductions) that directly reduce the tax owed:
Detrazioni per lavoro dipendente (Employees)
- Income up to EUR 15,000: EUR 1,955 deduction
- Income EUR 15,001 to 28,000: EUR 1,910 + degressive supplement
- Income EUR 28,001 to 50,000: EUR 1,910 x degressive coefficient
- Above EUR 50,000: progressive reduction to 0
Detrazioni per carichi di famiglia (Family Dependents)
- Dependent spouse: up to EUR 800/year (if spouse income < EUR 2,840.51)
- Dependent children: replaced by Assegno Unico since 2022
- Other dependents: EUR 750/year max
Key Tax Deductions (Deduzioni e Detrazioni)
Spese mediche
19% deduction on medical expenses above EUR 129
Interessi mutuo
19% on mortgage interest (max EUR 4,000/year)
Bonus ristrutturazione
50% on renovation works (max EUR 96,000)
Ecobonus
50-65% for energy efficiency
Spese istruzione
19% on education expenses (variable ceiling)
Superbonus 110%
Major works (strict conditions since 2024)
No Tax Area: Tax-Free Zone
Italy provides a no tax area through detrazioni:
Employees
Up to EUR 8,500 tax-free
Retirees
Up to EUR 8,500 tax-free
Self-employed
Up to EUR 5,500 tax-free
TFR: End-of-Contract Severance
The Trattamento di Fine Rapporto (TFR) is an Italian specialty: employers provision approximately 7.4% of annual gross salary each year. This amount is paid to the employee at the end of the contract (resignation, dismissal, or retirement).
Regime Forfettario for Self-Employed
Self-employed workers can opt for the highly advantageous Regime Forfettario:
- Flat rate of 15% (5% for the first 5 years for new businesses)
- Revenue ceiling: EUR 85,000/year
- No VAT, simplified accounting
- Reduced INPS contributions possible
France vs Italy Comparison
| Criteria | France | Italy |
|---|---|---|
| EUR 60,000 gross salary | ~EUR 42,000 net | ~EUR 40,000 net |
| Top marginal rate | 45% | 43% |
| Number of brackets | 5 | 3 |
| Employee contributions | ~22% | ~9.5% |
| Employer contributions | ~42% | ~26% |
| Local income taxes | No | Yes (2-4%) |
| Family quotient | Yes | No (detrazioni) |
| Simplified regime | Micro-enterprise | Forfettario (15%) |
Key Dates and Tax Filing
- Modello 730: Simplified return for employees (deadline: September)
- Modello Redditi PF: Complete return for self-employed (deadline: November)
- Precompilata: Pre-filled return available in April
- Codice fiscale: Equivalent to social security number, mandatory
Official Sources
- Agenzia delle Entrate: agenziaentrate.gov.it - Italian Tax Authority
- INPS: inps.it - National Social Security Institute
- MEF: mef.gov.it - Ministry of Economy and Finance
Italy offers special tax regimes for new residents (impatriati). Compare with Mediterranean and neighbouring countries to evaluate relative advantages.