š®š¹Italy Salary Calculator 2026 | Net income & contributions
Calculate freelance and self-employed taxes in Italy for 2026. Compute social contributions, deductions, and compare net income.
Country-Specific Options
2,070ā¬/ month
Equivalent to 24,835ā¬ / year
Effective Tax
29.0%
Employer Cost
48,094ā¬/yr
How Salary Tax Works in Italy
Operating as a freelancer or contractor in Italy is a popular career path. However, self-employed taxes differ significantly from regular salaried employment. Under the Italy 2026 regulations, a freelance gross revenue of 35,000ā¬ per year yields an estimated net income of 24,835ā¬ after accounting for social contributions and substitute tax rates.
Tax Calculation Flow for 35,000ā¬ Gross Income
When earning a gross income of 35,000ā¬ in Italy, your take-home pay is computed through a series of local deductions:
- Gross Income: 35,000ā¬/year
- Employee Social Contributions: 3,217ā¬/year
- Pension Deductions: 0ā¬/year
- Income Tax (Withholding): 6,183ā¬/year
- Other Surcharges: 766ā¬/year
- Net take-home pay: 24,835ā¬/year (2,070ā¬/month)
This leaves you with an effective tax burden of 29.0% on your gross salary. These calculations reflect the standard tax codes for the 2026 tax year.
Italian Tax Brackets (IRPEF 2026)
| Income Bracket | Tax Rate |
|---|---|
| Up to ā¬28,000 | 23% |
| ā¬28,000 to ā¬50,000 | 35% |
| Over ā¬50,000 | 43% |
Employer Costs in Italy
Employers in Italy bear a significant tax burden. On top of the gross salary paid to the employee, the employer must pay:
- Employer INPS: Around 30% of the employee's gross salary, representing pension and social welfare costs.
- TFR (Trattamento di Fine Rapporto): An additional deferred payment equivalent to roughly 7.41% of gross salary, set aside annually as a severance package.
This means the total cost of hiring a worker in Italy is generally 37% to 40% higher than the gross salary written in the contract.
Freelancing in Italy: The Regime Forfettario
Italy offers a highly attractive flat-rate tax regime for freelancers called the Regime Forfettario (for revenues up to ā¬85,000 per year):
- Profitability Coefficient (Ateco): Tax is not calculated on actual expenses, but on a flat percentage of revenue (usually 78% for consulting and professional services).
- Imposta Sostitutiva (Substitute Tax): A flat tax of only 5% for the first 5 years (startup phase) and 15% thereafter, applied to the taxable base.
- INPS Gestione Separata: Freelancers must pay social contributions, which stand at approximately 26.07% of their taxable base.
Frequently Asked Questions
What is the Regime Forfettario limit in Italy?
The annual revenue limit to qualify for and remain in the Regime Forfettario flat-tax regime is ā¬85,000. If you exceed this limit, you must transition to the ordinary tax regime (IRPEF + VAT).
How is the regional surtax calculated in Italy?
The regional addizionale is calculated on the same taxable income base as IRPEF. The rate varies from 1.2% to 3.3% depending on the region of residence, with Lazio and Campania historically having the highest rates.