Italy IRPEF Income Tax Calculator (2026 Brackets)

IRPEF is Italy's national personal income tax, administered by the Agenzia delle Entrate, and it applies progressively: each euro of taxable income is taxed at the rate for the bracket it falls into, not at a single flat rate on the whole amount. Starting 1 January 2026, the Legge di Bilancio 2026 (Budget Law, L. 199/2025) made permanent a three-bracket structure that had been trialled experimentally in 2024-2025, and it went a step further by cutting the middle bracket's rate from 35% to 33% for income between €28,000 and €50,000.

This calculator is built for Italy specifically -- it computes IRPEF in euros using the current 2026 bracket thresholds and rates, not a generic income-tax model borrowed from another country. It takes your gross annual income, subtracts any deductible expenses (oneri deducibili) you enter -- most commonly mandatory INPS social-security withholding -- and applies the 2026 progressive schedule to what remains.

Step 1 -- Taxable income:

Step 2 -- 2026 IRPEF brackets, applied progressively (each rate applies only to the slice of income within that bracket):

For example, €40,000 of taxable income is taxed as: €28,000 at 23%, plus the remaining €12,000 at 33% -- not €40,000 at a single rate.

What changed for 2026: the middle bracket was 35% through 2025; the Budget Law 2026 cut it to 33%. At exactly €50,000 of taxable income, this brought gross tax down from €14,140 to €13,700 -- a €440 saving that is also, not coincidentally, the maximum benefit anyone sees from this reform (see the caveat below).

Using the calculator's default inputs:

• Annual Gross Income: €35,000
• Deductible Expenses: €3,217 (approximating a typical employee's 9.19% INPS contribution)

Step by step:

1. Taxable income = €35,000 − €3,217 = €31,783.
2. First €28,000 taxed at 23% = €6,440.00.
3. Remaining €3,783 (€31,783 − €28,000) taxed at 33% = €1,248.39.
4. Gross IRPEF = €6,440.00 + €1,248.39 = €7,688.39.
5. Effective rate = €7,688.39 ÷ €31,783 ≈ 24.2%. Marginal rate = 33% (the rate on the last euro earned).
6. Gross income net of IRPEF only = €35,000 − €7,688.39 = €27,311.61.

Compare a higher earner with €80,000 gross income and €7,352 in deductions (taxable income €72,648): the first €28,000 is taxed at 23% (€6,440), the next €22,000 at 33% (€7,260), and the remaining €22,648 at 43% (€9,738.64) -- a total of €23,438.64, with a 43% marginal rate.

• Detrazioni (tax credits). This calculator computes gross IRPEF only. It does not subtract the employment-income tax credit (detrazione da lavoro dipendente), dependent-family-member credits, or credits for deductible expenses like healthcare, mortgage interest, or home-renovation bonuses -- all of which reduce the final amount actually owed.
• Regional and municipal surtaxes. Every Italian region levies an "addizionale regionale" (commonly 1.2%-3.3% of taxable income) and most comuni levy an "addizionale comunale" (commonly 0%-0.9%), both set annually and varying by location and income band. Neither is included here.
• The >€200,000 sterilization mechanism. For taxpayers with total income above €200,000, the Budget Law 2026 claws back the 33%-bracket benefit by reducing certain 19%-rate deductions by €440 -- in effect, cancelling the net advantage of the rate cut for very high earners. This calculator does not model that clawback.
• Non-progressive income categories. Some income types (certain capital gains, severance pay under "tassazione separata," some rental income under cedolare secca) are taxed outside the ordinary IRPEF brackets modeled here -- see this platform's dedicated TFR, rental-tax, and pension calculators for those cases.
• Self-employment-specific regimes, such as the flat-rate "regime forfettario" (5%/15% substitute tax for qualifying small businesses and freelancers), which replaces IRPEF entirely rather than modifying it.

• Applying the marginal rate to your whole income. Italy's IRPEF is a true progressive/marginal system: only the portion of income inside a given bracket is taxed at that bracket's rate. A €31,783 taxable income is not taxed entirely at 33% -- only the €3,783 above the €28,000 threshold is.
• Forgetting the 2026 rate cut only applies between €28,000 and €50,000. Income below €28,000 remains at 23%, and income above €50,000 remains at 43% -- the reform did not change the top or bottom brackets, only the middle one.
• Assuming the >€200,000 clawback affects the bracket rate itself. It doesn't change the 33% rate -- it separately reduces certain deductions to neutralize the euro-for-euro benefit, a subtler mechanism than a rate change.
• Confusing gross IRPEF with take-home pay. Regional/municipal surtaxes, detrazioni, and (for employees) INPS withholding all sit between gross IRPEF and your actual net paycheck -- none of the "net income" figures on this page should be read as a final take-home number.
• Mixing up "reddito" (income) and "imponibile" (taxable base). Deductible expenses (oneri deducibili) reduce the taxable base before brackets are applied; tax credits (detrazioni) reduce the tax bill afterward -- conflating the two produces the wrong final figure.

• Agenzia delle Entrate -- "Aliquote e calcolo dell'IRPEF" portal page (agenziaentrate.gov.it), consulted for the underlying bracket-structure framework. agenziaentrate.gov.it

Caveat: the >€200,000 deduction-clawback ("sterilization") mechanism and current-year regional/municipal surtax rates were not independently re-verified against a primary Agenzia delle Entrate or regional-government document this session; both are disclosed above as not modeled in this calculator's output.

Also consulted: Legge di Bilancio 2026 (L. 199/2025): three-bracket IRPEF structure made permanent and second-bracket rate cut from 35% to 33% for income between €28,000 and €50,000, effective 1 January 2026. Confirmed via multiple concordant 2026 Italian tax-press sources (fiscomania.com, soluzionetasse.com, CGIL Roma e Lazio, sgravi.com, cafinforma.it), all independently agreeing on the exact bracket boundaries, rates, and the €14,140-to-€13,700 figure at €50,000.