Italy Salary Calculator

On €40,000 gross for 2026, net pay works out at roughly €27,430 a year, about €2,286 a month. IRPEF, counting the average regional and municipal addizionali and after the employee detrazione has been applied, comes to around €8,890. Employee INPS contributions add about €3,680, the 9.19% rate.

Italy carries one of the heavier burdens in southern Europe, though the detrazioni for employees pull the final bill down a long way from where the raw brackets would put it.

Three national bands:
23% to €28,000
35% from €28,001 to €50,000
43% above €50,000

On top sit the regional addizionale, between roughly 1.23% and 3.33%, and the municipal addizionale, anywhere from nothing to 0.9% depending on where you live.

The employee share for 2026:
Pension, IVS: 9.19% on earnings up to roughly €55,008 a year
Other contingencies: about 0.30%
Total: around 9.49% of the contribution base

The employer pays a great deal more, close to 23.81%, which is why the full cost of employing someone in Italy sits well above the gross salary on the contract.

It is a credit for employed workers, worth up to €1,955 a year at incomes up to €15,000 and tapering away as income rises towards €55,000.

For middle earners it makes a real difference to the IRPEF actually owed, and it is applied automatically in the figures shown here.

There is, and it is generous enough to be contentious. The Impatriati regime exempts up to 50% of income from IRPEF for five years, extendable to ten if certain conditions are met, for people relocating to Italy or returning after a period abroad.

It has made Italy a serious option for returning expatriates and for remote workers employed elsewhere. The calculator here uses the ordinary IRPEF rates, not the regime.