Italy Tax Deductions
Source-backed employee estimate for 2026-01-01 to 2026-12-31. Reference table: Milan, Lombardy; choose your actual jurisdiction below.
Deductions & supported scenarios
Supported payments: none yet. Tax deductibility and actual cash payments are tracked separately. Enter only the payment arrangements described in the questions and country limitations.
Where an optimisation scenario is supported, the engine recalculates tax and shows the trade-off in spendable income. Absence of a suggestion does not establish that no other legal relief exists.
Open the interactive salary calculator →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.