Italy IRPEF 2026: Tax Brackets, INPS Contributions, and Net Salary
June 2026 · 9 min read
Italy's personal income tax, the IRPEF (Imposta sul Reddito delle Persone Fisiche), was simplified in a 2024 reform that reduced the original four brackets to three. Combined with INPS pension contributions and the work income deduction (detrazione per lavoro dipendente), Italy's tax system for employees in 2026 is more streamlined than it used to be, though still complex. This guide explains how it all works.
IRPEF brackets for 2026: three rates
| Annual income | IRPEF rate |
|---|---|
| Up to €28,000 | 23% |
| €28,001 to €50,000 | 35% |
| Above €50,000 | 43% |
IRPEF is calculated on gross income directly. The work income deduction (see below) then reduces the tax bill.
Work income deduction (detrazione per lavoro dipendente)
To reduce the tax burden on employees, Italy applies a deduction directly to the calculated IRPEF:
- For income up to €15,000: deduction of €1,955
- For income between €15,000 and €50,000: deduction decreases linearly to zero
- For income above €50,000: no deduction
This effectively means workers earning under €8,500 pay no IRPEF at all (the credit fully offsets the tax).
INPS pension contributions: 9.19%
Italian employees pay 9.19% of gross salary into the INPS (Istituto Nazionale della Previdenza Sociale) pension fund (IVS contribution). This is paid on top of the income tax calculation. Regional (addizionale regionale) and municipal (addizionale comunale) surtaxes also apply, averaging an additional ~2–3% of taxable income, but vary by location.
Net salary examples for 2026
| Gross (annual) | INPS (9.19%) | IRPEF (after deduction) | Net salary (approx.) |
|---|---|---|---|
| €20,000 | €1,838 | €2,845 | €15,317 |
| €30,000 | €2,757 | €5,145 | €22,098 |
| €50,000 | €4,595 | €12,450 | €32,955 |
Use the GrossToNet Italy calculator to calculate your net salary for 2026.