🇮🇹 Italy: VAT & Income Tax 2026
Reference figures for the 2026 tax year. Estimates for educational use — not official tax advice.
Italy take-home pay calculator
€28,047 net / year · €2,337 / month
| Gross | €40,000 | 100% |
| IRPEF + local addizionali | −€8,737 | 22% |
| INPS contributions | −€3,676 | 9% |
| Net take-home | €28,047 | 70% |
Computed on the 2026 IRPEF brackets (23% / 33% / 43%, the middle rate cut from 35% by the 2026 Budget Law), employee INPS at 9.19% up to €56,224 and 10.19% above, the employment detrazione and the now-structural cuneo fiscale. Local tax is pinned at the statutory minimum regional rate (1.23%) plus a representative municipal 0.80%: real addizionali run from 0.7% to 3.33% depending on region and comune, so this line moves most. Family deductions and 13th/14th-month instalments are not modelled. Full rates for Italy →
Period figures assume €1/12 per month and a standard 40-hour, 5-day, 52-week year. Adjust hours & weeks →
VAT rates
Income tax bands
IRPEF 2026: 23% to €28,000; 33% (cut from 35% by the 2026 Budget Law) to €50,000; 43% above. The thresholds apply to income after INPS, not to the RAL. Employee INPS is 9.19% up to €56,224 and 10.19% above. A detrazione per lavoro dipendente — €1,910 plus €1,190 × (€28,000 − income)/€13,000 up to €28,000, then falling to zero at €50,000 — and the now-structural cuneo fiscale then cut the bill sharply below €40,000, which is why the effective rate is far lower than the headline brackets suggest. Regional addizionale (0.7–3.33%) and municipal addizionale (up to 0.9%) add on top.
| Band (up to, EUR) | Marginal rate |
|---|---|
| 28,000 | 23% |
| 50,000 | 33% |
| above | 43% |
Personal allowance / tax-free amount: none (0%).
Estimate your take-home
Use the Italy net salary calculator for a full annual / monthly / weekly / hourly breakdown, the salary converter to change hours and weeks, or compare two countries side by side.
Frequently asked questions
How much income tax do you pay in Italy?
Italy applies marginal income-tax rates from 23% up to 43%. Employee social contributions are deducted on top of income tax — see the take-home calculator above for the combined effect.
What is the VAT rate in Italy?
The standard VAT rate in Italy is 22%, with a reduced rate of 10% for certain goods and services. Use the EU VAT calculator to add or remove VAT at Italy rates.
How accurate are these Italy tax figures?
Computed on the 2026 IRPEF brackets (23% / 33% / 43%, the middle rate cut from 35% by the 2026 Budget Law), employee INPS at 9.19% up to €56,224 and 10.19% above, the employment detrazione and the now-structural cuneo fiscale. Local tax is pinned at the statutory minimum regional rate (1.23%) plus a representative municipal 0.80%: real addizionali run from 0.7% to 3.33% depending on region and comune, so this line moves most. Family deductions and 13th/14th-month instalments are not modelled.
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