Italy Salary Calculator

On a €40,000 gross salary in Italy for 2026, your take-home pay is approximately €27,430/year (€2,286/month). IRPEF income tax — including average regional and municipal addizionali, after the employee detrazione — is roughly €8,890, and employee INPS social contributions total approximately €3,680 (9.19%).

Italy's effective tax burden is among the highest in Southern Europe, though detrazioni (tax credits) for employees reduce the net liability significantly.

IRPEF brackets 2026:
23% on income up to €28,000
35% on €28,001–€50,000
43% on income above €50,000

Plus regional surcharge (addizionale regionale) of ~1.23–3.33% and municipal surcharge (addizionale comunale) of 0–0.9% depending on municipality.

Employee INPS contributions 2026:
Pension (IVS): 9.19% on earnings up to ~€55,008/year
Other contingencies: ~0.30%
Total employee: ~9.49% on the contribution base

Employer pays significantly more (~23.81%), making the total labour cost far higher than gross salary.

Italy provides a tax credit for employed workers (detrazione per redditi da lavoro dipendente) of up to €1,955 annually for incomes up to €15,000. It phases out progressively up to €55,000. This credit significantly reduces IRPEF liability for middle-income earners. Our calculator applies this credit automatically.

Italy has a controversial Beckham-style regime (Impatriati) for workers returning from abroad or relocating to Italy: up to 50% of income is exempt from IRPEF for 5 years (extended to 10 under certain conditions). This makes Italy attractive for returning expats or remote workers from abroad. Our standard calculator uses regular IRPEF rates.