Italy Salary Calculator 2026
Gross-to-net salary calculator for Italy. For employees and freelancers (Forfettario).
Sourced from official government publications
Tax rules last verified
Built by SalaryCalc team
How salary tax works in Italy in 2026
This calculator models 5 tax regimes for Italy — 2 for employed staff and 3 for freelancers and company owners. All amounts are calculated in EUR and can be displayed in another currency at current exchange rates. Each regime below lists the rates, thresholds and contributions the calculator applies; select one above to see it worked through on your own figure.
Employment income
Standard Employee (Lavoro dipendente)
Standard Italian employment. Progressive IRPEF on (gross − INPS), with regional/municipal addizionali (~2.6%) and Art. 13 TUIR work credit. INPS employee contribution 9.19% / 10.19% to €122 295 cap. Middle bracket reduced 35% → 33% under Legge di Bilancio 2026 (Legge n. 199/2025).
- IRPEF: 23% / 33% / 43%
- INPS: 9.19% / 10.19% (cap €122 295)
- Addizionali ~2.6% (regional + comunale)
- Work credit (detrazione) Art. 13 TUIR
Inbound worker regime (Regime Impatriati)
New residents only. MUTEX with Forfettario (Ruling 460/2022).
Inbound-worker regime (D.Lgs. 209/2023). 50% of taxable employment income exempt from IRPEF for the first 5 tax years. Income cap €600 000/year — full IRPEF applies on the excess above the cap. INPS contributions are NOT exempt. Eligibility: not Italian tax-resident in the prior 3 years; commits to ≥ 4 years of continued residency.
- 50% IRPEF exemption
- Cap €600 000/year
- 5-year duration
- INPS unchanged
- Addizionali on reduced base
MUTEX with Forfettario per Agenzia delle Entrate Ruling 460/2022 — cannot be combined with any Forfettario B2B regime.
Freelance, self-employed and company regimes
Flat-rate 5% (startup, 5 yr) — Regime Forfettario
First 5 years of activity; revenue ≤ €85 000. MUTEX with Impatriati (Ruling 460/2022).
Reduced-rate Regime Forfettario for newly opened activities (first 5 tax years). Substitute tax 5% on revenue × 78% profitability coefficient (ATECO 62.0x — IT consulting/programming). INPS Gestione Separata 26.07% deductible from the substitute-tax base. Revenue cap €85 000/year.
- 5% imposta sostitutiva
- 78% ATECO 62.0x coefficient
- Effective income tax: 3.9%
- INPS Gestione Separata 26.07%
- Revenue cap: €85 000/year
- Duration: 5 years
MUTEX with Impatriati per Agenzia delle Entrate Ruling 460/2022 — cannot be combined.
Flat-rate 15% (Regime Forfettario)
Revenue ≤ €85 000 (forced exit at €100k). MUTEX with Impatriati (Ruling 460/2022).
Standard Regime Forfettario for established freelancers. Substitute tax 15% on revenue × 78% profitability coefficient (ATECO 62.0x). INPS Gestione Separata 26.07% deductible from the substitute-tax base. Revenue cap €85 000/year (immediate retroactive loss above €100 000).
- 15% imposta sostitutiva
- 78% ATECO 62.0x coefficient
- Effective income tax: 11.7%
- INPS Gestione Separata 26.07%
- Revenue cap: €85 000/year
- No VAT charged
MUTEX with Impatriati per Agenzia delle Entrate Ruling 460/2022 — cannot be combined.
Ordinary regime (Regime Ordinario)
Mandatory above €85 000 revenue. Compatible with Impatriati.
Standard self-employed regime — progressive IRPEF on profit (revenue − deductible costs − INPS). Regional/municipal addizionali (~2.6% combined) apply on the same profit base. INPS Gestione Separata 26.07% deductible from the IRPEF base. Mandatory above the €85 000 Forfettario cap. IRAP exempt for autonomi since 2022. Compatible with Impatriati (employee tier).
- IRPEF 23/33/43 on profit
- INPS Gestione Separata 26.07%
- Addizionali ~2.6% on profit
- Real expense deduction
- No revenue cap
- IRAP exempt (autonomi)
Official sources for Italy
The rates and thresholds above are taken from Agenzia delle Entrate and INPS — 2026 IRPEF brackets.
Figures are estimates for the 2026 tax year and exclude personal circumstances such as joint filing, dependants, regional surcharges and one-off reliefs unless stated above. See how we calculate and the official sources behind these numbers.
Frequently asked questions
IRPEF (Imposta sul Reddito delle Persone Fisiche) uses three brackets in 2026: 23% up to €28 000, 33% from €28 000 to €50 000, and 43% above €50 000 (Legge n. 199/2025). The brackets apply to taxable income, which is gross salary minus INPS employee contributions. A work income deduction (detrazione) of up to €1 955 further reduces the tax due.
INPS (Istituto Nazionale della Previdenza Sociale) contributions for employees are 9.19% of gross salary up to €56 224, and 10.19% from €56 224 up to the annual cap of €122 295. These are deducted from gross before income tax is calculated. Employers pay an additional ~23–30% in INPS contributions on top of your gross salary.
The forfettario is a flat-tax regime for freelancers and sole traders with annual revenue up to €85 000. A 78% profitability coefficient is applied to revenue (22% deemed costs), and the resulting tax base is taxed at a flat 15% rate (or 5% for the first 5 years of new activity). INPS contributions also apply to the tax base. The rate depends on the contributor's category: approximately 24% for artisans/merchants (Gestione Artigiani/Commercianti), or 26.07%–33.72% for professionals in the separate management scheme (Gestione Separata), depending on whether they are enrolled in other mandatory pension schemes. This calculator uses the 26.07% rate (enrolled in other schemes).
In addition to IRPEF, Italian employees pay regional (addizionale regionale) and municipal (addizionale comunale) income tax surcharges. Rates vary by municipality; this calculator applies an average combined rate of 2.6% on taxable income. Actual rates range from ~1.2% to ~3.8% depending on your region and municipality.
Employees earning up to 15 000 EUR taxable income receive the full deduction of 1 955 EUR, which is subtracted from IRPEF + surcharge. Between 15 000 EUR and 28 000 EUR, a formula applies: 1 910 + 1 190 × (28 000 − income) / 13 000, yielding approximately 3 100 EUR at 15 000 EUR down to 1 910 EUR at 28 000 EUR. Between 28 000 EUR and 50 000 EUR, the deduction is 1 910 × (50 000 − income) / 22 000, phasing from 1 910 EUR down to zero. Above 50 000 EUR, the deduction is zero. This significantly reduces the tax burden for lower and middle earners.
For freelancers, the forfettario often results in a lower effective tax rate than the standard IRPEF system at equivalent income levels, especially below €85 000 revenue. However, it does not allow VAT deduction or deduction of actual business costs. The optimal choice depends on your cost structure and whether you qualify.
Italian employees typically receive a 13th month (tredicesima) in December. Many sectors also have a 14th month (quattordicesima) in July/summer. These are included in gross annual salary. This calculator works with annual gross which already accounts for all monthly payments including these bonuses.