Gross → Net salary
Salary raise in Italy 2026: how much extra net pay?
Gross → Net salary · · 2 min read
By Lorenzo Schiavone · calculator developer
A €5,000 increase in gross annual salary (RAL) does not always produce the same net increase. In the Milan example below, moving from €35,000 to €40,000 adds about €1,928 annual take-home pay; moving from €45,000 to €50,000 adds about €2,534. Contributions, tax bands and tapering credits all matter.
Why subtracting 33% is insufficient
The IRPEF rates applying to 2026 income are progressive: 23%, 33% and 43%. They apply to taxable income, rather than directly to RAL. Employee contributions, tax credits and local taxes also enter the calculation.
The marginal IRPEF rate taxes the last portion of taxable income. The share of a gross raise absorbed by all deductions is a different measure: it also includes contributions and the withdrawal of relief. Neither should be applied indiscriminately to the whole salary.
Four €5,000 raises compared
Calculated with QuantoNetto’s engine: ordinary private employee in Milan, 365 days, 13 payments, basic employee IVS of 9.19%, no additional funds, other income, expense credits or special regimes. Municipal tax uses available 2025 rules as an expressly flagged estimate.
| Gross salary before → after | Annual net before → after | Annual net increase | Extra average over 13 |
|---|---|---|---|
| €30,000 → €35,000 | €23,425.52 → €26,032.21 | €2,606.69 | €200.51 |
| €35,000 → €40,000 | €26,032.21 → €27,960.25 | €1,928.04 | €148.31 |
| €40,000 → €45,000 | €27,960.25 → €30,034.25 | €2,074.00 | €159.54 |
| €45,000 → €50,000 | €30,034.25 → €32,567.77 | €2,533.52 | €194.89 |
Payroll relief changes the result
The tax wedge relief rules taper the extra credit once relevant total income exceeds €32,000, reaching zero at €40,000. Those are income thresholds, not gross salary thresholds. The ordinary employment credit also decreases.
In the €35,000 → €40,000 comparison, the extra payroll credit falls from €1,000 to €459.50. Losing €540.50 absorbs part of the raise. Under these assumptions, 38.56% of the gross increase remains net. That does not mean the entire salary is taxed at more than 60%.
Comparing a job offer or promotion
Keep municipality, payment count and contribution profile identical. If the raise starts in October, compare the new ongoing annual salary separately from the gross pay actually earned during the current year.
Check whether an offer includes variable bonuses, welfare or an absorbable superminimo. An ordinary raise does not automatically qualify for the 5% contract renewal tax. Annual averages over 13 or 14 payments do not predict individual payslips: adjustments and local-tax instalments affect timing.
Frequently asked questions
Does entering a higher band reduce all take-home pay? ▾
The higher rate applies only to the portion above its threshold. Check the overall change against tax credits and local-tax exemption thresholds as well.
Does €5,000 gross always mean €200 extra per month? ▾
No. The example averages €148.31 to €200.51 over 13 payments. Municipality, contributions and income change the outcome.
Can I divide the annual difference by 12? ▾
Yes, for a monthly budgeting average. With 13 or 14 contractual payments, it is not the ordinary payslip amount.
Sources and method
- Department of Finance · TUIR article 11, 2026 IRPEF rates
- Department of Finance · TUIR article 13, employment tax credits
- Agenzia delle Entrate · circular 4/E · 16 May 2025
- QuantoNetto · calculation method and limitations
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.