Income tax in Italy 2026: your tax rate and what you keep
You keep
€5,863 a month
€70,362 a year · 54.1% of your gross
| National income tax (IRPEF) | €42,983 | 33.1% |
|---|---|---|
| Lazio regional surcharge | €3,693 | 2.8% |
| Rome municipal surcharge | €1,063 | 0.8% |
| Social security (INPS), employee share | €11,900 | 9.2% |
| Net | €70,362 | 54.1% |
At national level, income tax in 2026 goes from 23% up to 43% on income over €50,000; employee contributions are counted separately, as is any local tax. Italy's flat tax for wealthy new residents has tripled in stages: €100,000 at the outset, €200,000 from August 2024 and €300,000 for those moving after 31 December 2025, plus €50,000 per family member. Workers have a separate route, with half of their Italian pay taxed for five tax years. The 2026 budget also lifted the pension deduction ceiling to €5,300. At €270,000 gross, net falls to €144,240, or 53%; at €450,000, to €239,226, or 53%. On €130,000 the country ranks 34 of 35 for cash in hand, before any special regime. The sums assume: Rome, Lazio (region and city each add a surcharge). On safety, schools and health it scores 45 out of 100 among the countries covered. Next, in order, come 3 legal ways to cut the bill, 2 regimes open to new arrivals and what to check before you leave.
The tax scale
National 2026 scale, before deductions. Social contributions and any local taxes come on top.
| From €0 to €28,000 | 23% |
|---|---|
| From €28,000 to €50,000 | 33% |
| Above €50,000 | 43% |
At different salaries
| Gross | Income tax | Contributions | Net | Kept |
|---|---|---|---|---|
| €89,000 | €29,977 | €8,507 | €50,516 | 57% |
| €130,000 | €47,739 | €11,900 | €70,362 | 54% |
| €270,000 | €113,861 | €11,900 | €144,240 | 53% |
| €450,000 | €198,875 | €11,900 | €239,226 | 53% |
Assumptions: Rome, Lazio (region and city each add a surcharge). Permanent private-sector contract, worker first insured after 1995, full year; children are ignored because those under 21 receive the Assegno Unico outside the payslip, and income tax can be negative on low pay because of the payments added to the net.
What should you do at your salary? My plan in 5 questions →
Average salary in Italy
On €34,733 gross, the average salary of 2025, about $38,957, an employee in Italy takes home €2,125 a month, or €25,506 over the year. That leaves them 73% of their pay.
In net pay converted to dollars the country ranks 23 of 31, behind Spain ($30,181) and ahead of Malta ($28,200). On gross it ranked 21, so tax moves it down 2 places.
| Gross a year | €34,733 |
|---|---|
| Net a year | €25,506 |
| Net a month | €2,125 |
| Share kept | 73% |
OECD figure: average gross pay per full-time equivalent employee. Exchange rate of 2 November 2026.
Cost of living in Italy
For 2025, the World Bank puts prices in Italy at 72.9, with the United States at 100: 27% below the United States. The country holds rank 130 of 161, counting up from the cheapest.
Compared with the other country pages: cheaper than Hong Kong (74.0) and dearer than Malta (69.0). Adjusted for prices, the $28,608 net of an average salary is worth $39,242 in American terms, against $70,018 for an average American employee. Housing is a separate story: 142.7 against a world 100 in 2021, compared with 122.6 for everyday prices.
Beyond the money
National public figures: they place the country, and say nothing about one district or one school.
| Safety, schools, health score | 45 out of 100 |
|---|---|
| Homicides per 100,000 people | 0.6 |
| Political stability (−2.5 to +2.5) | 0.5 |
| Rule of law (−2.5 to +2.5) | 0.6 |
| Mean PISA score at 15 | 477 |
| Reference international school | €24,200 · American Overseas School of Rome, Rome (2026-27) |
| Life expectancy | 84 years |
| PM2.5 fine particles (µg/m³) | 14.3 |
| Housing price level (world = 100) | 142.7 |
| Everyday price level (world = 100) | 122.6 |
Annual tuition published by the school, for Grades 6-8, excluding enrolment and other fees unless stated. One school among others, shown as a marker, not a recommendation. One-time on top: EUR 5,500 capital assessment per new family, EUR 800 registration per new student.
Against other countries
At €130,000 gross, it ranks 34 of 35 for cash in hand, at today's exchange rate.
Paying less, legally
Home renovation deduction
Work on a main residence in 2026 earns a 50% deduction on up to €96,000 of spending per home for the owner. Other cases get 36%.
Supplementary pension funds
Contributions by the worker and the employer are deductible up to €5,300 a year from tax year 2026, up from €5,164.57.
Electronic meal vouchers
From 2026 these are exempt up to €10 a day, up from €8, while paper vouchers remain at €4.
Special regimes
Lavoratori impatriati (article 5, Legislative Decree 209/2023) Open
Only 50% of Italian-source work income enters the tax base
Flat tax for new residents (article 24-bis) Open
A fixed annual substitute tax replaces income tax on foreign-source income
Who is tax resident in Italy?
Since 2024, any of four tests suffices for a majority of the tax year: registration in the population registry (now a rebuttable presumption), residence, domicile, or physical presence. Domicile now means the place where personal and family relationships mainly develop, and 183 days of physical presence, including remote work and part days, are enough on their own.
The trap to know
The two regimes do not stack for much longer. Article 2 of Decree-Law 38/2026 extends the ban on combining the flat tax with the new impatriate regime to anyone moving their tax residence to Italy from tax year 2027.
Questions
How much is €130,000 after tax in Italy?
€70,362 a year, or €5,863 a month, for a single resident employee. Income tax comes to €47,739 and contributions to €11,900. At €270,000, the share you keep moves to 53%. Each month that leaves €5,863 of €10,833 gross. This amount ignores any scheme for people settling in.
What is the top income tax rate in Italy?
43% on the 2026 scale, above €50,000. At €130,000, each extra 1,000 leaves about €528 net. At €450,000 gross you would keep 53%. Nobody pays it on all their income, since the lower bands still apply to the first part of the salary.
What gross salary leaves €106,000 net a year in Italy?
About €197,500 gross a year, or €16,458 a month, for a single resident employee, with no special regime taken into account. Tax and contributions then take 46% of gross. A bonus or a benefit in kind can change the gross to negotiate in your contract.
Is Italy safe and expensive to live in?
The public figures on this page show 0.6 homicides per 100,000 people, a housing price level of 142.7 (world = 100) and a mean PISA score of 477. These values describe the whole country, not your street or your children’s school. Add 84 years of life expectancy and 14.3 µg/m³ of fine particles, both sourced further down the page.
Sources
- Agenzia delle Entrate, IRPEF rates and calculation
- Dipartimento delle Finanze, Lazio regional surcharge
- Regione Lazio, regional surcharge 2026
- Roma Capitale, municipal surcharge
- INPS, 2026 contribution ceiling and first band
- World Bank / UNODC, intentional homicides per 100,000
- World Bank, Worldwide Governance Indicators: political stability and absence of violence
- World Bank, life expectancy at birth
- World Bank, PM2.5 air pollution, mean annual exposure
- World Bank, International Comparison Program 2021: price level index, housing (world = 100)
- OECD, PISA 2022 Results, Volume I
- American Overseas School of Rome
- OECD, Average annual wages, current prices in national currency (read 3 November 2026)
- World Bank, PPP conversion factor for private consumption (PA.NUS.PRVT.PP) divided by the official exchange rate (PA.NUS.FCRF), API read 3 November 2026
Figures 2026, checked on