Italy Tax Calculator 2026

2026 IRPEF Tax Brackets (UPDATED)

Tax Rate	Income Range
23%	€0 - €28,000
33%	€28,001 - €50,000
43%	€50,001+

            🎉 Flat Tax Regime (Regime Forfettario) 2026:
            15% flat rate - replaces IRPEF!
No VAT registration required
No regional/municipal taxes
Revenue limit: €85,000/year
First 5 years under 35: 5% rate

        

Italy Tax System Guide 2026

Italy has a progressive income tax system (IRPEF) with additional regional and municipal taxes. A simplified flat tax regime is available for small businesses and freelancers.

Inbound Worker Tax Breaks

For foreign workers moving to Italy:

70% exemption on Italian income for 5 years
90% exemption if moving to Southern Italy
Requirements: Not Italian tax resident for past 2 years
Can extend to 10 years with property purchase
*Note: Flat Tax and Inbound Worker regimes cannot be combined.*

Social Contributions (INPS) 2026

For Employees: ~9.19% of gross salary

For Self-Employed (Gestione Separata): 26.23% on taxable income

Flat tax regime: INPS is calculated on a reduced taxable income (coefficient of profitability 67%).

Pros and Cons

Pros:

Flat tax regime is very attractive (15%!)
Inbound worker breaks (70-90% exemption)
Many deductions available
Good quality of life
New simplified IRPEF brackets (3 instead of 4)

Cons:

High standard rates (up to 47%)
Complex bureaucracy
High INPS for self-employed (26.23%)
Flat tax has €85k limit
Regional variations in additional taxes

Tips for Freelancers (Partita IVA) in Italy

Start with Regime Forfettario if eligible (revenue under €85k)
Consider the inbound worker regime if you're relocating to Italy
Track your hours and revenue carefully for regime eligibility
Set aside 35-40% of income for taxes and INPS
Consult a commercialista for proper setup and compliance
Consider moving to Southern Italy for 90% tax exemption (inbound workers)