How Italian Income Tax Works โ IRPEF
Italy's IRPEF has three national brackets plus addizionale regionale (average 2.1%) and addizionale comunale (average 0.5%). Self-employed with revenue under โฌ85,000 can use the regime forfettario flat tax of 15%, which replaces IRPEF and social taxes.
| IRPEF Rate | Income |
|---|---|
| 23% | โฌ0โโฌ28,000 |
| 35% | โฌ28,001โโฌ50,000 |
| 43% | Over โฌ50,000 |
- โINPS contributi: 9.19% (employees) or 26.23% Gestione Separata (self-employed, 2024 rate, deductible)
- โDetrazione lavoro dipendente: up to โฌ1,880 work deduction automatically applied for employees
- โAddizionale regionale: varies by region, national average ~2.1% โ added to IRPEF
- โRegime forfettario: 15% flat tax (5% for first 5 years) for self-employed under โฌ85,000 revenue
- โFile 730 precompilato (employees) or Redditi PF (self-employed) at agenziaentrate.gov.it
- โSPID digital identity required โ register via PosteID or other certified provider