These are the personal income tax rates (IRPEF – Imposta sul Reddito delle Persone Fisiche) that apply after 1 January 2024. For applicable rates before that date please click this link.
The rates were changed by Legislative Decree no. 216/2023 published in the Official Gazette no 303 of 30 December 2023.
FY 2025 thresholds and applicable rates may be amended by the Italian FY 2026 Finance law.
The rates of IRPEF shown below and additional Regional and Municipal taxes apply to income which is not subject to imposta sostititva (“substitute tax”). Below the IRPEF table is a list of examples of what kinds of income/gains may be subject to substitute tax, which applies in place of the main national income, regional and municipal taxes.
FY 2024 Rates of Italian Income Tax
(based on annual income)
Rate
Cumulative Tax to Top of Band
On the first € 28,000
23%
€ 6,440
Above € 28,000 up to € 50,000
35%
€ 7,700
Over € 50,000
43%
Bracket of Income
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.
Department of Finance Additional Regional Tax Rates
Department of Finance Additional Municipal Tax Rates
Download Department of Finance Excel Table of Additional Municipal Tax Rates 2025
Tax Deductions and Credits
There is no personal relief or general standardized deduction from income which would exempt income from tax – the rates above apply to all income received in the year.
However Italy does have a series of specific deductions and tax credits applicable to certain types of income and costs. Note that these deductions (with the exception of social security contributions) and tax credits are only available to reduce the liability to IRPEF, regional and municipal tax. Where a substitute tax applies most of the standard deductions and tax credits generally do not apply.
Standard Tax Credits
Relief from tax for low income earners is given via tax credit which means that the tax as calculated at the rates above is offset by the credit. wholly or partially depending on total income – the higher the total income the lower the credit. the credit available depends on type of income – income from employment, pension income and income from self employment.
Specific Deductions and Credits
See this article
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