How tax works in the regime forfettario
In the flat-rate regime you do not deduct real costs. Income is a fixed share of the revenue you collect, set by the profitability coefficient of your activity: 78% for professionals, 40% for trade, 67% for many other activities.
Mandatory pension contributions are subtracted from that income. On what is left you pay a substitute tax of 15%, or 5% for the first five years of a new activity. It replaces income tax (IRPEF), the regional and municipal surtaxes and IRAP.
INPS contributions in 2026
Contributions depend on the scheme you are registered with.
- Gestione Separata: 26.07% of income for professionals with no other cover, 24% for people who are also employees or pensioners. There is no minimum contribution.
- Artisans: €4,521.36 a year up to €18,808 of income, then 24% on the excess and 25% above €56,224.
- Traders: €4,611.64 a year up to €18,808 of income, then 24.48% on the excess and 25.48% above €56,224.
- 35% reduction: flat-rate artisans and traders can apply to INPS for it. It also lowers the contributions credited towards the pension.
Who can use the flat-rate regime
The limit is €85,000 of revenue in the previous year. Above it you leave the regime from the following year; above €100,000 you leave at once and charge VAT from the transaction that crosses the threshold.
The regime is closed to anyone who had employment or pension income above €35,000 in the previous year, a threshold confirmed for 2026, unless the job has ended. Invoices carry no VAT and no withholding tax.
Frequently asked questions
A professional in the Gestione Separata with the 78% coefficient has income of €23,400, pays €6,100.38 in contributions and 15% on €17,299.62, which is €2,594.94. That leaves €21,304.68. At the 5% rate the tax falls to €864.98.
It depends on revenue and on what you compare. The calculator shows the salary that would leave the same net, but an employee also gets severance pay, holidays, sick pay and contributions paid mostly by the employer.
No. Costs are already recognised as a flat amount through the profitability coefficient. Only mandatory pension contributions are deducted.
It is the reduced substitute tax for the first five years, for people starting a new activity who ran none in the previous three years and are not simply continuing work they did before as an employee or freelancer.
Sources and method
- Agenzia delle Entrate: the flat-rate regime rules
- Agenzia delle Entrate circular 9/E 2019: profitability coefficients
- INPS circular 8/2026: Gestione Separata
- INPS circular 14/2026: artisans and traders
- Law 199/2025, the 2026 budget law
Figures and rules checked on . The result is an estimate for information and does not replace professional advice.