IRPEF
Employment tax credit and trattamento integrativo in 2026
IRPEF · · 2 min read
By Lorenzo Schiavone · calculator developer · updated on
Employment tax credits reduce gross IRPEF. The trattamento integrativo, up to €1,200 a year, is a separate payroll allowance with income and tax-capacity conditions. Neither is the same measure as tax wedge relief.
Full-year employment credit formulas
Up to €15,000 total income, the theoretical credit is €1,955, with minimums of €690 or €1,380 for fixed-term employment. Above €15,000 up to €28,000 it is 1,910 + 1,190 × (28,000 − income) / 13,000.
Above €28,000 up to €50,000 it is 1,910 × (50,000 − income) / 22,000. It reaches zero at €50,000. An additional €65 applies above €25,000 up to €35,000 and is not prorated by days. Ordinary credits are subject to work-period and tax-capacity rules.
Conditions for the supplementary allowance
Up to €15,000 total income, qualifying employment gross IRPEF must exceed the employment credit reduced by €75, prorated to employment days. The allowance is up to €1,200, also day-prorated.
Above €15,000 and up to €28,000, qualifying employment tax capacity remains required, and specified statutory credits must exceed total gross IRPEF. The allowance is the difference, limited to its annual maximum. Without those expense details, entitlement is uncertain.
Substitute-taxed pay is restored for the virtual employment-tax capacity test. It is not automatically added to the eligibility income ceilings. Exempt inbound-worker income has its own add-back rules.
No-tax area and other credits
For full-year employment income alone, €8,500 taxable income produces €1,955 gross IRPEF, fully offset by the ordinary credit. This is not a universal threshold for part-year work or mixed income.
Family and expense credits have separate eligibility rules and limits. The calculator does not automatically reconstruct all national family credits or a full tax return. Enter only the eligible credits described by its help text.
Frequently asked questions
Does every worker below €15,000 receive €1,200? ▾
No. Employment days and qualifying-work tax capacity are also required.
Can payroll relief and the supplementary allowance coexist? ▾
Yes, when each measure’s distinct conditions are satisfied. They must be calculated separately.
Sources and method
- Agenzia delle Entrate · 730/2026 instructions
- Agenzia delle Entrate · official rules and guidance
- Agenzia delle Entrate · circular 4/E · 16 May 2025
An informational guide to the 2026 rules. Examples are annual estimates under the stated assumptions. Average pay does not reproduce a monthly payslip. Prior-year municipal rates are marked as estimates.