Italy Income Tax
Source-backed employee estimate for 2026-01-01 to 2026-12-31. Reference table: Milan, Lombardy; choose your actual jurisdiction below.
How Italy income tax works
Progressive tax applies to income after the supported deductions. Each band taxes only the portion inside it. These bands use the taxable income base; the initial table is for Milan, Lombardy.
| Taxable annual income | Rate |
|---|---|
| EUR 0 - 28,000 | 23% |
| EUR 28,000 - 50,000 | 33% |
| EUR 50,000 - and above | 43% |
Additional schedules: Lombardy regional IRPEF surcharge, Milan municipal IRPEF surcharge. These are calculated separately and included in the tax total. Component-specific credits are applied only to their own tax schedule.
The displayed tax total covers IRPEF and local taxes. See the country assumptions for details.
Supported tax residences: Milan, Lombardy. The calculator applies the selected residence’s income-tax bands.
Calculation assumptions
- Full-year Italian resident employee aged 18-64, fiscal domicile in Milan, Lombardy, at the relevant annual reference dates. No dependants, special regimes or other income.
- Actual annual statutory employee contributions are supplied from payslips and deducted from gross to establish ordinary taxable salary. No universal INPS rate is assumed.
- Taxable salary must exceed EUR50,000, where the ordinary employment credit and the additional employment deduction have fully phased out.
- The 2026 IRPEF rates are 23%, 33%, 43%. Lombardy progressive regional rates and Milan municipal 0.8% apply to taxable salary.
- Milan municipal exemption is a threshold, not a deduction; it is irrelevant within this higher-income reference.
Coverage & limitations
Coverage: Standard · Rule version: IT-2026-v1 · Tax year: 2026 · Independent verification: pending.
- Limited employee reference only. Independent professional verification pending.
- No self-employment, other income, benefits in kind, disability exemptions, family reliefs, special expatriate regimes or voluntary deductions.
- Monthly net is annual cash after tax divided by twelve, not exact payroll withholding.
- Actual payslip contributions are required because rates depend on employment and insurance arrangements. Employer contributions are not estimated.
- Only Milan/Lombardy and taxable salary above EUR50,000 are supported. Other municipalities, regions, lower-income employment credits and 2026 special remuneration reliefs are excluded.
Official sources
- TUIR Article 11 - IRPEF tariff effective in 2026 - Normattiva
- TUIR Article 51 - salary and statutory contribution treatment - Normattiva
- Regional IRPEF surcharge - Regione Lombardia
- Municipal IRPEF surcharge and exemption - Comune di Milano
Source research date: 16 October 2026. This is distinct from independent professional verification. Automated source checks appear in the administration dashboard after the worker runs.