These are the personal income tax rates applicable over the past ten years. 2025 thresholds and applicable rates may be amended by the Italian FY 2026 Finance law.
Up to date information on current rates can be found here
Table of Rates of Italian Income Tax over the Years
(based on annual income)
| Year | Bracket 1 | Bracket 2 | Bracket 3 | Bracket 4 | Bracket 5 |
|---|---|---|---|---|---|
| 2025 | 23% up to €28,000 | 35% €28,001–€50,000 | 43% over €50,000 | – | – |
| 2024 | 23% up to €28,000 | 35% €28,001–€50,000 | 43% over €50,000 | – | – |
| 2023 | 23% up to €15,000 | 25% €15,001–€28,000 | 35% €28,001–€50,000 | 43% over €50,000 | – |
| 2022 | 23% up to €15,000 | 25% €15,001–€28,000 | 35% €28,001–€50,000 | 43% over €50,000 | – |
| 2021 | 23% up to €15,000 | 27% €15,001–€28,000 | 38% €28,001–€55,000 | 41% €55,001–€75,000 | 43% over €75,000 |
| 2020 | 23% up to €15,000 | 27% €15,001–€28,000 | 38% €28,001–€55,000 | 41% €55,001–€75,000 | 43% over €75,000 |
| 2019 | 23% up to €15,000 | 27% €15,001–€28,000 | 38% €28,001–€55,000 | 41% €55,001–€75,000 | 43% over €75,000 |
| 2018 | 23% up to €15,000 | 27% €15,001–€28,000 | 38% €28,001–€55,000 | 41% €55,001–€75,000 | 43% over €75,000 |
| 2017 | 23% up to €15,000 | 27% €15,001–€28,000 | 38% €28,001–€55,000 | 41% €55,001–€75,000 | 43% over €75,000 |
| 2016 | 23% up to €15,000 | 27% €15,001–€28,000 | 38% €28,001–€55,000 | 41% €55,001–€75,000 | 43% over €75,000 |
Regional and Municipal Additional Taxes
On top of the above rates you need to add
- the addtional municipal tax (addizionale comunale) which ranges from 0.0% to 0.9%; and the
- additional regional tax (addizionale regionale) which varies from 0.70% to 3.33%
depending on region, municipality, brackets of income and applicable rates for the relevant tax year, which are updated from time by resolution of the Regional or Municipal authorities. The links below show the historical rates in force although extrapolating these is complex..
You can search below for your Region and Municipality (Comune) and find the applicable rates of Additional Regional and Municipal Taxes.
Searches are in the Italian language on the Italian Ministry Web Site and may not be up to date as some Regions and many Municipalities have not yet published the FY 2024 rates and bands.
Imposta Sostitutiva/Substitute Tax
The rates shown above apply only to income which is not subject to imposta sostititva (“substitute tax”) which applies in place of the main national income, regional and municipal tax shown above. Whether substitute tax applies – and it may apply either automatically or at the option of the taxpayer – depends on the type of income and the applicable treatment under law.
Examples of income that are subject to tax at the scale rates shown in the above table are:
- income from employment
- pension income (except for qualifying pensioners transferring residence to the South of Italy (see below) and certain distributions from regulated Italian supplementary or complimentary pension schemes
- business, trading or professional income otherwise than for taxpayers on the Regime Forfettario
- rent from Italian property (where the option to substitute tax is not taken)
- rent from non Italian property
- royalty income
- miscellaneous income
- distributions from non- EU harmonised investment funds and ETF’s
Examples of income that are liable to substitute tax are:
- income from pensions where the option to substitute tax at 7% has been taken (NB. if the option has been taken the 7% flat rate will apply to all non Italian source income).
- foreign-source income where election for an annual flat tax is made (HNWI regime)
- income from investments, e.g. interest, dividends, capital gains – generally taxed at 26% flat rate. Lower rates may apply (e.g. 12.5% to income from qualifying Treasury bonds)
- capital gains deriving from equity type instruments and disposals on certain financial assets (excluding gains on certain non EU harmonised investment funds and ETF’s)
- income from self employment carried out under the Regime Forfettario
- income for renting Italian property for the option for taxation at a flat rate of 21% on gross receipts has not been taken (cedolare secco).
- certain distributions from regulated Italian supplementary or complimentary pension schemes
- income from crypto assets realised otherwise in the course of a business or deemed business (e.g. mining etc.)
- capital gains from foreign currency transactions where the average balance of foreign currency accounts exceeds Euro 51,645.69 (1 million lire) for at least 7 consecutive working days during the tax year