🇮🇹 Italy Salary Tax Calculator

Italy taxes the income of resident workers through a national personal income tax called IRPEF (Imposta sul Reddito delle Persone Fisiche), layered with smaller local surtaxes and reduced by social security contributions and a set of tax credits. For most employees, the tax is calculated on annual gross salary, with pension contributions removed first and then progressive rates applied to what remains. The figures below reflect the 2026 tax year and are intended as general, educational information to help you understand roughly how your gross pay becomes net pay. They are estimates only, and your actual result will depend on your specific circumstances. IRPEF is progressive, meaning higher portions of income are taxed at higher rates while lower portions keep their lower rates. For 2026, our calculator applies three brackets: 23 percent on taxable income up to 28,000 EUR, 35 percent on the portion between 28,000 and 50,000 EUR, and 43 percent on any income above 50,000 EUR. Only the slice of income within each band is taxed at that band's rate, so moving into a higher bracket does not raise the rate on the income you already earned in the lower bands. On top of national IRPEF, Italy adds two local surtaxes: a regional surtax (addizionale regionale) set by each region and a municipal surtax (addizionale comunale) set by each city or town. These vary noticeably depending on where you live, so a worker in one municipality may pay a different combined local rate than someone with identical income elsewhere. Because our calculator cannot know your exact address, it approximates these two surtaxes together at roughly 2.5 percent of taxable income. Your real local rates could be higher or lower. Italian employees also benefit from tax credits known as detrazioni, which reduce the tax owed and effectively create a no-tax area for lower earners. In practice, this means people below a certain income level may owe little or no IRPEF once their credits are applied. The detrazioni depend on income level and personal factors, so they differ from one worker to another. Our calculator approximates this benefit with a simplified no-tax allowance rather than modeling every credit individually, which keeps the estimate straightforward while still reflecting the general relief lower earners receive. Before income tax is calculated, employees pay social security contributions to INPS, the national pension and welfare institute. The employee share is approximately 9.19 percent of gross salary and is deducted before IRPEF is applied, so it lowers the taxable base. These contributions apply up to a contribution ceiling of roughly 120,607 EUR; income above that ceiling is generally not subject to the additional pension contribution. Because INPS is removed first, it reduces both your take-home pay and the amount of income that IRPEF and the local surtaxes are charged on. Most Italian employees do not pay tax directly to the authorities during the year. Instead, the employer acts as a withholding agent (sostituto d'imposta), deducting IRPEF, the local surtaxes, and INPS contributions from each paycheck and forwarding them on the worker's behalf. After the year ends, many workers file an annual return, typically the Modello 730 or the Redditi form, to reconcile what was withheld with what is actually owed, claim additional credits, and receive a refund or settle any balance. Keep in mind that regional and municipal surtaxes, detrazioni, and individual circumstances all affect the final number, and our tool is a simplified estimate built for a single employee. Tax brackets, contribution ceilings, and local rates can change from year to year, and the 2026 figures used here are approximations. For decisions that depend on precise amounts, or to understand how your specific situation is treated, consult a qualified tax professional or commercialista.