Italy Salary Calculator 2026

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.