Italy Tax Calculator (2026)
Income tax rates and take-home pay for Italy
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Italy Income Tax Brackets (2025)
| Bracket | Income Range | Rate |
|---|---|---|
| 23% bracket | €0 - €28,000 | 23.0% |
| 33% bracket | €28,001 - €50,000 | 33.0% |
| 43% bracket | €50,001+ | 43.0% |
Tax credit: €1,955
Regional income tax
| Bracket | Income Range | Rate |
|---|---|---|
| Representative regional tax rate (2.0%) | €0+ | 2.0% |
Municipal income tax
| Bracket | Income Range | Rate |
|---|---|---|
| Representative municipal tax rate (0.5%) | €0+ | 0.5% |
Key Facts
Tax Year
2025
Currency
EUR
Top Rate
43.0%
Brackets
3 brackets
Tax Credit
€1,955
Social Contributions
0 items
Assumptions
- · Model uses representative national tax rates for a resident employee aged 35, single, no dependents.
- · Regional income tax averaged at 2.0% (ranges 1.23-3.33%) and municipal tax at 0.5% (ranges 0-0.9%) as representative rates.
- · Employee social security contributions estimated at approximately 9.19% on gross income up to EUR 120,607 cap (general private-sector employee); minor contributions above cap excluded.
- · Employer-side social contributions (~30%) excluded as they do not reduce employee take-home pay.
- · Employment income tax credit applied as a tiered credit reducing income tax liability.
- · Complementary pension contributions and other deductions simplified into social contributions where applicable.
- · Flat tax regimes (forfettario, lump-sum expat regime) excluded as model represents standard resident employee.
- · Variable compensation bonus surcharge (10% on financial sector bonuses above base salary) not modeled; applies to specific sector only.
- · Productivity bonus flat tax (1-5% depending on year and amount) not included in base model.
- · Wealth taxes, VAT, property taxes, and inheritance taxes excluded as outside standard employment income taxation.
- · Model assumes full-year employment with standard deductions for mandatory social contributions.
Frequently asked questions
How much income tax will I pay on my salary in Italy?
Italy uses a progressive tax system with three income tax brackets: 23% on income up to EUR 28,000, 33% on income between EUR 28,001 and EUR 50,000, and 43% on income above EUR 50,000. You'll also benefit from an employment income tax credit of up to EUR 1,955 (depending on your income level) that reduces your overall tax liability, plus additional regional and municipal taxes averaging around 2.5% combined.
What are employee social security contributions in Italy?
As an employee in Italy, you contribute approximately 9.19% of your gross salary to social security, but only up to a cap of EUR 120,607 annually. Above that cap, your contribution rate drops to 5%. These contributions are deducted from your salary before you receive your take-home pay and fund pensions and other social benefits.
Do I pay different taxes depending on which region I work in?
Yes, Italy has regional and municipal income taxes that vary by location. The calculator uses representative rates of 2.0% for regional tax and 0.5% for municipal tax, but actual rates range from 1.23% to 3.33% for regional tax and 0% to 0.9% for municipal tax depending on your specific region and municipality. You should check with your local tax authority for exact rates in your area.
Is there a flat tax option for expats or self-employed people in Italy?
Italy does offer special flat tax regimes for certain groups, including a lump-sum expat regime and a simplified forfettario system for self-employed workers, but these are not included in the standard employee tax calculator. If you're relocating as an expat or considering self-employment, you should consult a tax professional about whether these special regimes apply to your situation.
What's the difference between my gross salary and take-home pay in Italy?
Your take-home pay is reduced by employee social security contributions (9.19% up to EUR 120,607), national income tax (applied across three progressive brackets), plus regional and municipal taxes (averaging 2.5% combined). You'll also receive an employment income tax credit that can reduce your income tax liability, so your actual deductions depend on your specific income level and location.
Can I claim any tax credits or deductions as an employee in Italy?
The main relief available to employees is the employment income tax credit, which provides up to EUR 1,955 in tax reduction if you earn EUR 15,000 or less, EUR 1,910 if you earn between EUR 15,001 and EUR 50,000, and no credit if you earn above EUR 50,000. Mandatory social security contributions are also deducted from your gross income before calculating income tax, effectively reducing your taxable income.
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