IRPEF
Italy income tax brackets 2026: rates and examples
IRPEF · · 2 min read
By Lorenzo Schiavone · calculator developer · updated on
In 2026 Italy applies IRPEF at 23% up to €28,000, 33% on the portion above €28,000 up to €50,000, and 43% above €50,000. These brackets apply to taxable income, rather than gross annual salary (RAL). Each rate taxes only its own portion.
From gross salary to taxable income
For an ordinary employee with only 9.19% employee IVS contributions, €30,000 RAL produces €27,243 taxable income. It stays entirely in the first bracket. Additional funds, pension deductions, other income and special regimes can change that base.
At €35,000 RAL, contributions are €3,216.50 and taxable income is €31,783.50. Gross IRPEF is €6,440 on the first €28,000 plus €1,248.56 on the remainder: €7,688.56 before tax credits.
The second bracket falls from 35% to 33%
The gross tax saving is 2% of the taxable portion in that bracket, up to €440 a year. At €35,000 taxable income the saving is €140; at €45,000 it is €340. Below €28,000 taxable income this particular change saves nothing.
The 2026 saving can already be included in payroll withholding. The 2026 tax return reports 2025 income and still uses 35%; the 2027 return settles 2026 tax after subtracting withholding already paid. It does not automatically create another refund.
Above €200,000 total income, a €440 reduction to specified expense tax credits can offset the benefit. This calculator does not reconstruct all tax-return expenses.
Gross tax, net tax and marginal deductions
Employment credits and payroll relief reduce gross IRPEF within available tax capacity. Regional and municipal taxes also affect take-home pay. The actual marginal deduction rate can exceed the headline IRPEF bracket because credits taper as income rises.
Use the €35,000 salary calculator for the complete estimate and choose your municipality. The receipt distinguishes contributions, tax, credits and estimated local rates.
Frequently asked questions
Does 43% apply to all my income? ▾
No. It applies only to taxable income above €50,000. The lower portions retain their own rates.
Is the €440 saving guaranteed? ▾
It is the maximum reduction in gross IRPEF from this bracket change. Actual net savings depend on taxable income and applicable credits, including the rule above €200,000.
Sources and method
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.