How much of my salary do I keep in Italy?

A single employee earning €28,000 a year keeps €1,845 a month on average (79.1% of gross); on €60,000 it is €3,121 a month (62.4%), with national average surcharges.

RAL is retribuzione annua lorda: gross annual pay before INPS and tax. Most contracts pay it in 13 instalments and some in 14, so a payslip is roughly the RAL divided by 13 or 14 if the extra months are included.

How does the impatriati regime work?

If you qualify, 50% of your employment income (60% with a minor child) is free of IRPEF for five years, while INPS is still charged on the full salary. On €60,000 a year it raises net pay from €3,121 to €4,129 a month.

Why does net pay differ between Milan and Rome?

Regions and municipalities add their own surcharges to IRPEF. On €60,000 a year you keep €3,130 a month in Milan and €3,064 in Rome, where Lazio's regional rate is almost twice Lombardy's.

TFR is severance pay: each year your employer sets aside about 7.4% of your pay, revalued annually, and pays it when the job ends. It is taxed separately and is not part of your monthly net pay.

When do I become a tax resident in Italy?

When, for most of the year, you have your residence, your main personal and family ties or your physical presence in Italy. Being on the population register counts as residence unless you prove otherwise, and residents are taxed on their worldwide income.

Italy Tax Calculator 2026 — Net Salary After Tax

Gross (EUR)	Net Monthly	Net Annual	Tax Rate
EUR 18,000	EUR 1,328	EUR 15,934	11.5%
EUR 28,000	EUR 1,845	EUR 22,146	20.9%
EUR 40,000	EUR 2,322	EUR 27,865	30.3%
EUR 60,000	EUR 3,122	EUR 37,458	37.6%
EUR 90,000	EUR 4,344	EUR 52,134	42.1%

How Italy taxes a salary in 2026

Italy taxes employment income (IRPEF) at 23% up to €28,000, 33% up to €50,000 and 43% above — the middle rate fell from 35% in 2026. On top come a regional and a municipal surcharge set locally, which is why the same salary nets a different amount in Milan and in Rome.

First, 9.19% of your salary goes to the state pension (INPS), plus 1% on pay above €56,224; your employer pays 23.81% on top and sets aside a severance fund. Several credits then reduce the tax, above all for lower and middle incomes: an employee credit of up to €1,955 and the "cuneo fiscale" measures.

Where your salary goes

Annual amounts for a single employee without children, and the same €60,000 salary under the impatriati regime.

	€28,000	€60,000	€60,000 Under the impatriati regime
Gross salary	€28,000	€60,000	€60,000
Paid tax-free	—	—	€27,224
Income tax (IRPEF)	−€5,848	−€15,613	−€6,262
Employee tax credit (detrazione lavoro dipendente)	+€2,211	—	+€2,046
Extra tax credit (cuneo fiscale)	+€1,000	—	—
Regional surcharge (addizionale regionale)	−€440	−€942	−€471
Municipal surcharge (addizionale comunale)	−€203	−€436	−€218
Social security (INPS)	−€2,573	−€5,552	−€5,552
Net per year	€22,146	€37,458	€49,544
Net per month	€1,845	€3,121	€4,129
Share of gross you keep	79.1%	62.4%	82.6%

Italy income tax rates 2026

On taxable income per year, for one person.

Taxable income	Rate
Up to €28,000	23%
€28,000 – €50,000	33%
Over €50,000	43%

Social security contributions 2026

Share of gross salary, up to the yearly ceiling where there is one.

Contribution	Employee	Employer	Ceiling / year
Pension (INPS, IVS) Employees pay 1% more on pay above €56,224; the ceiling applies to people first insured after 1995	9.19%	23.81%	€122,295
Unemployment (NASpI)	—	1.61%	None
Sickness and maternity Office workers; rates differ by sector	—	2.68%	None
Work accident insurance (INAIL) Depends on the risk of the job (office rate shown)	—	0.4%	None
Severance fund (TFR) Set aside by the employer and paid to you when the job ends	—	7.407%	None

Allowances, credits and surcharges

Employee tax credit (detrazione lavoro dipendente): €1,955 — Up to €15,000 of income, then shrinking to zero at €50,000
Extra tax credit (cuneo fiscale): €1,000 — For income from €20,000 to €32,000, tapering to zero at €40,000
Tax-free cuneo bonus: 7.1% — Of employment income up to €8,500, falling to 4.8% up to €20,000; paid on top of net pay
Trattamento integrativo: €1,200 — Paid with salary on income up to €15,000
Regional surcharge (addizionale regionale): 1.73% — National average used here; each region sets its own rates
Municipal surcharge (addizionale comunale): 0.8% — National average used here; each municipality sets its own
Impatriati regime (qualifying newcomers): 50% — Of employment income exempt from IRPEF and the surcharges (60% with a minor child), on income up to €600,000

Milan or Rome?

Income tax with each city's 2026 regional and municipal surcharges; the figures above use national averages.

On €60,000 a year	Income tax / year	Net / month	Difference / month
National averages (figures above)	€16,990	€3,121	—
Milan (Lombardy)	€16,894	€3,130	+€8
Rome (Lazio)	€17,676	€3,064	−€57

RAL, the 13th month and TFR

Job offers quote the RAL (retribuzione annua lorda), gross annual pay before contributions and tax. Most contracts pay a 13th month in December and some a 14th, so check whether the RAL you are offered includes them; enter the full annual amount here — monthly figures are an average over twelve months.

TFR (trattamento di fine rapporto) is severance pay your employer sets aside every year, about 7.4% of pay, and pays out when the job ends; it is not part of monthly net pay. Since July 2026 people starting their first private-sector job are enrolled in a pension fund that receives the TFR, unless they opt out within 60 days.

The regional and municipal surcharges are collected the following year in instalments from your payslip, so net pay in your first year in Italy looks higher than it will later.

The impatriati regime

People moving their tax residence to Italy can have 50% of their employment income exempted from IRPEF and the surcharges — 60% if they move with a minor child or have one during the regime — on income up to €600,000 a year, for the year of the move and the four after it. INPS contributions are still due on the full salary.

You must not have been resident in Italy in the previous three tax years (six or seven if you work for the same employer or group as before), have a high qualification or specialisation, work mainly in Italy and stay at least four years — leaving earlier means paying the benefit back. Your employer can apply it through payroll, or you claim it in your tax return.

On €60,000 a year, net pay is €3,121 a month without it and €4,129 a month under the impatriati regime.

What changed in 2026

•Middle IRPEF rate cut from 35% to 33%, worth up to €440 a year.
•INPS — the extra 1% now starts at €56,224 (was €55,448), and the contribution ceiling is €122,295 (was €120,607).
•New 5% tax on 2026 pay rises from collective-agreement renewals for private-sector workers who earned up to €33,000 in 2025, and 15% on night, holiday and shift pay up to €1,500 for those who earned up to €40,000.
•Tax-free electronic meal vouchers up from €8 to €10 a day.
•Automatic pension-fund enrolment for people starting their first private-sector job, from 1 July 2026.
•Unchanged — the employee credits, the cuneo fiscale measures and the 9.19% INPS rate.

What this calculator assumes

~Single, no dependants, first insured with INPS after 1995, so the contribution ceiling applies.
~National average regional and municipal surcharges unless a city is named; the Milan and Rome rows use those cities' 2026 rates.
~No other income or deductions; the cuneo fiscale and trattamento integrativo are included where they apply.
~The gross salary is the full RAL, including any 13th or 14th month.
~The impatriati column assumes you qualify for the 50% exemption, without a minor child.

Sources

Rules checked against these sources in October 2026. Every figure on this page is computed by the same code as the calculator above. How we verify tax rules. For binding advice, ask a tax adviser.

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