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Italy Tax Guide Hub 2026: Income Tax, Rates & Calculator

Daniel · CountryTaxCalc Updated June 2026
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KEY INSIGHT
Italy's hidden trap: IRPEF rates (23-43%) don't include regional surtax (1.23-3.33%) or municipal surtax (up to 0.9%)—true top rate approaches 47%. A €50,000 earner pays ~€10,900 income tax + ~€5,845 social contributions = ~€16,740 total (~33%). New resident flat tax: €100,000/year covers ALL foreign income. Pensioners relocating to southern Italy pay just 7% on foreign pensions for 10 years.
At a glance

Key Facts

Tax Rate Range
23-43%
Tax Type
Progressive - rate increases with income
Filing Deadline
July 23 (Modello 730, employees); November 30 (Modello Redditi PF, self-employed)
Introduction

Italy uses a progressive income tax system called IRPEF (Imposta sul Reddito delle Persone Fisiche) with rates from 23% to 43% across 3 brackets. But the headline rates are misleading—add regional surtax (1.23-3.33%) and municipal surtax (up to 0.9%) for true rates approaching 47%. A €50,000 earner pays roughly €10,900 IRPEF + €1,250 regional/municipal = €12,150 (~24%, or ~33% including social contributions). Italy offers a flat tax regime for new residents: 7% on foreign pension income or €100,000 flat on worldwide income for wealthy relocators. Rental income can use cedolare secca (flat 21% or 10%). Filing deadline is November 30 via Modello 730 or Redditi PF. Use our calculator to estimate your Italian tax liability.

This hub links to every Italy tax guide and calculator on CountryTaxCalc — covering income tax rates, expat obligations, and tools to calculate your take-home pay.

Section 01

Italy Tax Guides

Detailed Italy tax guides on CountryTaxCalc:

Section 02

Italy Income Tax Calculator

Italy's income tax uses 3 tax brackets from 23% to 43%. Use the calculator to estimate your take-home pay after income tax:

IncomeRate
€0 - €28,00023%
€28,000 - €50,00033%
Over €50,00043%
Section 03

Related Hubs

Italy tax connects with these hubs on CountryTaxCalc:

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FAQ

Frequently Asked Questions

What are Italy's IRPEF tax brackets for 2026?

Italy has 3 IRPEF brackets: 23% up to €28,000, 33% from €28,000-€50,000, and 43% above €50,000. Note: The 2024 reform merged the old 25% bracket into the 23% bracket and reduced the middle bracket from 35% to 33%. Add regional surtax (1.23-3.33% depending on region) and municipal surtax (0-0.9%) for total rates.

What is Italy's flat tax for new residents?

Italy offers two flat tax regimes for new residents. The 'impatriate regime' gives 50% income exemption for workers relocating to Italy (70% in qualifying southern regions; DL 209/2023, effective from 2024). The 'neo-resident' regime lets wealthy individuals pay €100,000/year flat tax on ALL worldwide income (plus €25,000 per family member). Pensioners moving to southern regions pay just 7% on foreign pensions for 10 years.

What is cedolare secca for rental income?

Cedolare secca is an optional flat tax on rental income: 21% for standard rentals or 10% for affordable housing contracts (canone concordato). This replaces IRPEF (up to 43%), registration tax, and stamp duty. It's almost always beneficial for landlords, especially those in higher tax brackets. You must notify tenants in the rental contract.

When are Italian taxes due?

For employees, use Modello 730 (deadline usually July 23, with employer handling payment). Self-employed use Modello Redditi PF (deadline November 30). Balance payments are due June 30 (or July 30 with 0.4% surcharge). Advance payments (acconti) of 40% are due in June and 60% in November for the following year.
Disclaimer:This hub provides general information about Italy taxation for educational purposes only. Tax rules change frequently and individual circumstances vary. Always verify current rates and rules with the official Italy tax authority or a qualified local tax adviser. This is not tax or legal advice.
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