Italy · 2025
Italy Income tax calculator
Work out the gross IRPEF (imposta lorda) due on annual taxable income in Italy for the 2025 tax year, using the three merged progressive brackets introduced by the Legge di Bilancio 2025. This is the gross income tax before tax credits (detrazioni) and before regional and municipal surtaxes (addizionali), which are calculated separately.
| Tax-free allowanceIRPEF has no zero-rate band; the no-tax area is given via tax credits (detrazioni), not an allowance | 0,00 € |
| Taxable income | 35.000,00 € |
| Income after gross tax | 26.110,00 € |
How it works
- You start from reddito imponibile: total income (reddito complessivo) minus deductible charges such as mandatory social contributions.
- The first 28,000 EUR is taxed at 23%. The slice from 28,001 to 50,000 EUR is taxed at 35%. Anything above 50,000 EUR is taxed at 43%.
- This gives the imposta lorda. Tax credits (detrazioni for employment income, family and expenses) are then subtracted to reach the imposta netta, but they cannot push the tax below zero.
- Regional surtax (addizionale regionale, 1.23 to 3.33%) and municipal surtax (addizionale comunale, 0 to 0.9%) are added on top and vary by where you live; they are not included here.
Worked example
A 40,000 EUR reddito imponibile in 2025 is taxed at 23% on the first 28,000 (6,440) plus 35% on the remaining 12,000 (4,200), giving 10,640 EUR of gross IRPEF before any detrazioni.
Frequently asked questions
Is this the tax I actually pay?+
No. This is the gross tax (imposta lorda). Your final bill is lower once detrazioni such as the employment-income tax credit (up to 1,955 EUR) are subtracted, and it can be higher once regional and municipal surtaxes are added.
Why is there no tax-free allowance?+
Italy does not use a zero-rate band. Low incomes are protected instead by the detrazione system, which acts as a de facto no-tax area of roughly 8,500 EUR for employees by cancelling out the gross tax at the bottom.
Do regional and municipal surtaxes change the result?+
Yes. The addizionale regionale (1.23 to 3.33%) and addizionale comunale (0 to 0.9%) are added on top of national IRPEF and depend on your region and municipality, so two people on the same income can owe different totals.
Are the 2025 rates the same in 2026?+
No. The 2026 Budget Law cuts the middle bracket from 35% to 33% for the 28,001 to 50,000 EUR band from the 2026 tax year. For the 2025 tax year shown here it is still 35%.
Sources
- Aliquote e calcolo dell'IRPEF · Agenzia delle Entrate
- Circolare n. 4/E del 16 maggio 2025 - IRPEF e lavoro dipendente, Legge di Bilancio 2025 · Agenzia delle Entrate
Last updated: 2025-01-01 · Applies to 2025
This is an estimate for general guidance, not financial, tax, legal or medical advice. Figures can change and individual circumstances vary. Always confirm with the official sources listed before making decisions.
- Input is reddito imponibile (taxable income), already net of deductible charges such as social contributions.
- Output is imposta lorda (gross IRPEF) only. It excludes detrazioni (tax credits), trattamento integrativo, and regional/municipal surtaxes.
- 2025 tax year rates: 23% / 35% / 43%. The middle band falls to 33% from 2026.
- Bracket maths is continuous: cumulative tax is 6,440 EUR at 28,000 and 14,140 EUR at 50,000 (6,440 + 35% of 22,000). The 13,700 EUR figure sometimes quoted for the top band is the pre-2025 four-bracket constant and does not apply to the 2025 merged brackets.
Reviewed by Vikas Dulgunde.