Italy Tax Calculator (2026)
Income tax rates and take-home pay for Italy
Using Rome for state/regional taxes. Region selection coming soon.
Italy Income Tax Brackets (2025)
| Bracket | Income Range | Rate |
|---|---|---|
| Bracket 1 | €0 - €28,000 | 23.0% |
| Bracket 2 | €28,000 - €50,000 | 35.0% |
| Bracket 3 | €50,000+ | 43.0% |
Tax credit: €1,955
Lazio Regional Income Tax
| Bracket | Income Range | Rate |
|---|---|---|
| Basic Rate | €0 - €15,000 | 1.2% |
| Excess Rate | €15,000+ | 3.3% |
Rome Municipal Income Tax
| Bracket | Income Range | Rate |
|---|---|---|
| Flat Rate | €0+ | 0.9% |
INPS Social Security (Employee)
| Bracket | Income Range | Rate |
|---|---|---|
| Standard Rate | €0+ | 9.5% |
Capped at €11,446 per year
Key Facts
Tax Year
2025
Currency
EUR
Top Rate
43.0%
Brackets
3 brackets
Tax Credit
€1,955
Social Contributions
1 item
Assumptions
- · Assumes the worker is a standard employee (non-executive) registered with INPS after 1 January 1996.
- · National Income Tax (IRPEF) uses the 3-bracket structure confirmed for 2025.
- · Regional income tax is based on Lazio (Rome), which uses a 1.23% - 3.33% progressive-like structure.
- · Municipal income tax is based on the city of Rome (0.9%).
- · Employee social security contribution (INPS) is estimated at 9.49%, which is a standard rate for staff including pension and minor social funds.
- · Includes the new FY 2025 'Additional Deduction' for employment income between 20,000 and 40,000 EUR.
Frequently asked questions
How much income tax will I pay in Italy if I earn 35,000 EUR per year?
Italy uses a 3-bracket progressive income tax system. On 35,000 EUR, you would pay 23% on the first 28,000 EUR and 35% on the remaining 7,000 EUR. You would also benefit from the Additional Employment Deduction of 1,000 EUR for that income level, which reduces your taxable income and your overall tax burden.
What is the INPS social security contribution and how much will it cost me?
INPS is Italy's mandatory employee social security contribution, set at 9.49% of your gross income, covering pension, health insurance, and other social benefits. For a 35,000 EUR salary, this would amount to approximately 3,321 EUR per year, and this contribution is deductible from your taxable income.
Do I have to pay regional and municipal taxes in Italy in addition to national income tax?
Yes, Italy has both regional and municipal income taxes in addition to the national IRPEF tax. This calculator uses Rome as the default location, where Lazio regional tax ranges from 1.23% to 3.33% and Rome municipal tax is a flat 0.9%, but rates vary significantly depending on which region and city you live in.
What is the tax relief or credit available in Italy for employees?
Italy provides a non-refundable tax credit of 1,955 EUR for employees, which phases out at a rate of 5.58% for income above 15,000 EUR. This credit directly reduces your tax liability and is designed to provide relief for lower and middle-income earners.
Is there a maximum cap on how much INPS social security I have to pay?
Yes, the INPS employee contribution has a maximum annual cap of 11,445.60 EUR, which means once your contributions reach this amount, you stop paying additional social security contributions for the rest of the year. This cap applies regardless of how high your income is.
What makes Italy's tax system different from other European countries?
Italy's tax system combines a 3-bracket national income tax with regional and municipal taxes that vary by location, plus mandatory INPS social security contributions that are relatively high compared to some other EU countries. Additionally, Italy offers special deductions for employment income in specific ranges, such as the 1,000 EUR Additional Employment Deduction for those earning between 20,000 and 32,000 EUR.
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