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🇮🇹 Italy Net Salary Calculator 2025
Italy's IRPEF was simplified in 2024 to three brackets: 23% up to €28,000, 35% up to €50,000, and 43% above. Before tax, employees pay INPS contributions of around 9.5% into the state pension, capped once income passes €120,607. Regional and municipal surcharges add an average 2.5% on top of the federal rate. This calculator bakes those in, so the number you see reflects what a typical Italian employee actually pays. Effective no-tax area for employees is roughly €8,500, created by the employment income deduction (detrazione lavoro dipendente) rather than a formal personal allowance. At €50,000 gross, an Italian employee pays around €4,800 in INPS contributions and roughly €10,400 in IRPEF including surcharges, taking home approximately €34,800. The effective rate rises steeply above €50,000 as the 35% bracket and regional surcharges combine.
Italy Income Tax Brackets
Brackets apply to taxable income after the €8,500 tax-free allowance.
| Income band | Rate |
|---|---|
| €0 – €28,000 | 25.50% |
| €28,000 – €50,000 | 37.50% |
| €50,000 and above | 45.50% |
Take-home pay examples
| Gross / year | Net / year | Net / month |
|---|---|---|
| €30,000 | €22,396 | €1,866 |
| €50,000 | €34,832 | €2,903 |
| €80,000 | €50,690 | €4,224 |
| €120,000 | €70,421 | €5,868 |
Employee figures only, standard deductions applied. Pension contributions, benefits in kind, and other personal factors are not included.
Data & assumptions
- Tax year
- 2026
- Last updated
- 2026-07-17
- Employment assumption
- Full-time employee, single filer
Figures are estimates based on standard deductions and do not account for pension contributions, benefits in kind, or individual circumstances. See our methodology for how these numbers are calculated.
Frequently Asked Questions
What is the detrazione lavoro dipendente?
It's a tax credit for employment income that creates a de facto tax-free area of around €8,500 per year. The credit is worth €1,880 at lower incomes and phases down as income rises. This calculator approximates it as a fixed €8,500 tax-free threshold, so the results are closest for employees earning between €20,000 and €80,000.
What do INPS contributions cover?
INPS IVS (Invalidità, Vecchiaia, Superstiti) contributions go towards the state pension. You pay 9.19% of gross up to a ceiling of €120,607 per year. There's also a 0.30% NASPI contribution for unemployment insurance. Italy runs a "contributory" pension system: what you get back in retirement is directly linked to what you pay in over your working life.
Why do regional and municipal rates vary?
Every Italian region and municipality levies its own surcharge on top of federal IRPEF. Regional rates range from 1.23% (the legal minimum) to 3.33%, and municipal rates go up to 0.9%. This calculator uses 2% regional and 0.5% municipal as rough national averages; your actual bill depends on where you live.
What is the impatriati regime?
The impatriati regime exempts 50% of employment income from IRPEF for workers who move to Italy and were resident abroad for the three preceding years. In certain southern regions the exemption rises to 90%. Since a 2024 reform, it applies for five years. An extension for a further five years at 50% is available for those who have at least one minor child or purchase a property in Italy. This calculator shows standard resident rates; impatriati filers have a materially higher take-home, particularly at higher incomes.
What is a good salary in Italy?
Milan is Italy's highest-paying city, particularly for finance and tech. A single person in Milan needs around €25,000–30,000 net per year to live comfortably. The national median gross salary is around €28,000–30,000 per year, though there is a large north-south divide: salaries in Milan and Turin often run 30–40% above equivalent roles in Naples or Palermo. Tech companies in Milan offer €40,000–80,000 gross for senior roles. The impatriati regime makes Italy more attractive for relocation than the headline IRPEF rates suggest.
What is the TFR and does it affect my monthly pay?
The TFR (trattamento di fine rapporto) is a statutory severance fund. Each year your employer sets aside roughly one month's gross salary into this fund; you receive the accumulated total when you leave the job or retire. It doesn't reduce your monthly payslip, but it is real deferred compensation. At a typical Italian salary it accumulates to roughly €1,500–2,500 per year. Employees can elect to redirect TFR contributions into a supplementary pension fund (fondo pensione) instead of leaving them with the employer.