Personal income tax (IRPEF) rates from 1 January 2024

These are the personal income tax rates 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.

 

The Decree states that they applicable for FY 2024 only and therefore not guaranteed to remain applicable after that date.  Also they may be subject to further modification by subsequent legislation before the publication of standard model tax returns for FY 2025 on FY 2024 income (spring 2025).

FY 2024 Rates of Italian Income Tax

(based on annual income)

Bracket of Income (annual amounts)

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%

On top of the above rates you need to add 

the municipal tax supplement (imposta addizionale comunale) which ranges from 0.1% to 0,9%

and the 

supplemental regional tax which varies from 0.70% to 3.33% 

depending on region 

and bracket of income

Bracket of Income

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

 

 

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 depends on the type of income, the treatment under law and, in some case, the election of the taxpayer.

 

Examples of income that are subject to tax at the rates shown in the above table are: 

  • income from employment
  • pension income (except for qualifying pensions in the South of Italy (see below)
    income from self employment
  • rent from Italian property (where the option to substitute tax is not taken)
    rent from non Italian property 
  • royalty income 
  • miscellaneous income

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% will apply to all income).
  • income from investments, interest, dividends, capital gains  – generally taxed at 26% flat rate. Lower rates may apply.  
  • income from a self employment carried out under the flat tax regime for small business
  • 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).
The substitute tax applies to investment income and rental income only where the person receiving the relevant income does not do so in the course f a business activity (e.g financial trading or carrying out a property letting business). 

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