Italy

Italy is an EU and Schengen member that uses the euro. The main routes for skilled non-EU workers are the EU Blue Card and the employer-sponsored Decreto Flussi quota route.

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Updated October 2026 9 min read
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For information only. Tax rules are complex and vary by individual circumstances. The information on this page is for general guidance only and is not a substitute for professional tax advice. Consult a qualified tax advisor for your specific situation. Full disclaimer ↗

IRPEF & regional surcharges · Agenzia delle Entrate

Tax guide for expats in Italy

Key things to know before your first Italian tax year:

Italian pay is taxed in layers: national IRPEF at 23%, 33% and 43%, then a regional and a municipal surcharge, plus your INPS pension contribution. Your employer withholds these each month. You need a codice fiscale before your first payslip, and you may be able to cut your taxable income under the impatriati regime if you move your tax residence to Italy.

Key tax facts at a glance Primary authority: Agenzia delle Entrate ↗

At a glance

Tax year
Calendar year 2026
IRPEF bands
23% to €28,000 · 33% to €50,000 · 43% above
Employee INPS pension share
9.19%
Standard VAT (IVA)
22% · reduced 4% / 5% / 10%
Filing
Pre-filled return by 30 September · Redditi PF by 31 October

Residency

When you become Italian tax-resident

The test in Italian tax law: Resident if, for most of the tax year (counting part-days), you have your civil-law residence or domicile in Italy or are physically present. Registering at your town hall’s population register (anagrafe) is treated as evidence that you are resident.

⚠️ Common mistakes new arrivals make

  • Forgetting the surcharges.

    The IRPEF bands are not the whole bill: the regional and municipal surcharges are added on the same income, and the rates depend on where you live.

  • Missing the impatriati conditions.

    The reduced taxable share applies only if you were not tax-resident in Italy in the previous 3 tax years and meet the qualification test, so check before you sign your contract.

  • Starting work without a codice fiscale.

    Your employer needs it for payroll. It is normally assigned when the Sportello Unico or the Questura processes your permit.

Official sources

Income tax

IRPEF bands

IRPEF is progressive. For 2026 the first €28,000 of taxable income is taxed at 23%, income from €28,000 to €50,000 at 33%, and income above €50,000 at 43%. Your employer withholds IRPEF from each payslip.

Income from Income to Tax rate Notes
0 € 28,000 € 23% 23% on taxable income up to €28,000 (2026)
28,000 € 50,000 € 33% 33% on the part from €28,000 to €50,000 (2026)
50,000 € No limit 43% 43% on the part above €50,000 (2026)

Official sources

Social security

INPS contributions

As an employee you pay 9.19% of gross pay as your share of the INPS pension contribution in the main employee pension fund; your employer pays its own share on top. Some sectors and contract types have additional contributions, so your payslip is the final word.

9.19% employee share of the INPS pension contribution (main employee fund)

Official sources

Surcharges

Regional & municipal surcharges (addizionali)

On top of IRPEF you pay a regional surcharge, with a base rate of 1.23% that each region can raise, and a municipal surcharge set by your comune, capped at 0.8 percentage points. Both use the same taxable income as IRPEF and are withheld through payroll.

Regional and municipal surcharges (addizionali): Regional surcharge (addizionale regionale): base rate 1.23%, which each region can raise. Municipal surcharge (addizionale comunale): set by your comune, at most 0.8 percentage points. Both are charged on the same taxable income as IRPEF.

Official sources

Special regimes

Impatriati regime & new-resident flat tax

If you move your tax residence to Italy to work, the impatriati regime counts only 50% of qualifying employment income in your taxable income, up to €600,000 a year (40% if you move with a minor child). It runs for 5 tax years: the year you move and the following ones. You must not have been tax-resident in Italy in the previous 3 tax years, and you need high qualifications or specialisation.

New-resident flat tax

People moving their tax residence to Italy can instead opt to pay a flat amount of €300,000 for each tax year in which the option applies, regardless of income. This is aimed at high-net-worth individuals, not typical employees.

Official sources

Business & VAT

Corporate tax & VAT

Companies pay IRES at 24% on profits. VAT (IVA) is 22% as standard, with reduced rates of 4%, 5% and 10% on listed goods and services.

Corporate income tax

24% IRES (corporate income tax)

VAT (IVA)

22%

Standard VAT

10%

Reduced VAT (also 5% on some items)

4%

Lowest reduced rate

Official sources

Filing

Deadlines & how to file

Most employees file the pre-filled employee return (precompilata) by 30 September. The Redditi PF return is filed online by 31 October of the year after the tax year. You sign in to the Agenzia delle Entrate with SPID / CIE / CNS.

Tax year: Calendar year 2026

Return deadlines: 30 September (pre-filled employee return) · 31 October (Redditi PF, online)

File via Agenzia delle Entrate (official portal)

Official sources

Treaties

Double taxation & your home country

Whether tax you pay abroad can be credited against Italian tax depends on any double taxation treaty between Italy and your home country. Check it with the Agenzia delle Entrate or a tax adviser before your first return.

Official sources

Your origin

Tax treaty & corridor surprises

Set your home country using the header “From” selector to see corridor-specific guidance. Every origin gets at least neutral treaty orientation below.

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