Moving to Italy for a job brings a tax system with a generous newcomer regime and a progressive income tax. The two interact: the regime can exempt part of your salary, and the rest is taxed through the normal brackets. Here is how the pieces fit for an employee.
The impatriate regime
The impatriate regime (regime impatriati) is a tax break for people who move their tax residence to Italy to work. In its current form it exempts 50% of employment income from Italian tax, rising to 60% if you have a minor child. The exemption applies for 5 years, up to 600,000 euros of income per year.
The conditions matter: you must not have been tax-resident in Italy for the 3 years before the move, and you must commit to staying tax-resident in Italy for at least 4 years. The break covers employment and self-employment income, and it also extends to certain related income. If you leave early, the benefit can be clawed back, so treat the commitment seriously.
IRPEF brackets for 2026
Income that is not exempt is taxed under IRPEF, Italy’s personal income tax, at progressive rates. For 2026 the national brackets are: 23% up to 28,000 euros, 33% from 28,001 to 50,000 euros, and 43% above 50,000 euros. Regional and municipal surcharges sit on top, and vary by where you live, so the national brackets are only part of the bill.
Note the middle rate: it was 35% in 2025 and changed to 33% for 2026. Older guides still showing 35% are out of date, which is a common source of confusion when researching this topic.
Worked example
An employee earns 80,000 euros and qualifies for the 50% exemption. Taxable income is 40,000 euros. National IRPEF: 23% x 28,000 = 6,440 euros, plus 33% x 12,000 = 3,960 euros, totalling 10,400 euros before surcharges and any deductions or credits. Without the regime, the same salary would face tax on the full 80,000 euros, which shows why the exemption is worth more than any salary negotiation of a few thousand euros.
Your employer usually withholds tax monthly as a substitute tax, so the figure appears on your payslip rather than as a year-end bill. Check the payslip: the exemption should be visible as a reduced taxable base. If it is not, ask payroll whether your impatriate status is registered.
Checklist before you move
Confirm your eligibility and register your residence promptly, since timing affects the regime. Ask your employer how the exemption is applied in payroll. Budget for surcharges and social security contributions, which the exemption does not remove. And get advice on the tax rules of your previous country too, because exit taxes and double-tax treaties can change the picture. This guide is general information, not tax advice for your specific case.
Social security on the payslip
Income tax is only part of the payslip. Employees also pay social security contributions to INPS, roughly 9% of gross pay for most employees, with the employer paying a much larger share on top, around 30%. The impatriate exemption reduces taxable income for IRPEF, but it does not remove social security contributions.
That distinction matters for budgeting: a salary that looks lightly taxed after the exemption still loses about a tenth to social security before you see it. Read the whole payslip, not just the IRPEF line, and ask payroll to explain any line you do not recognise.
Try it faster with the tool
You can follow every step above by hand, but the free Online Italian taxation for international employees Calculator does the arithmetic for you. Enter your numbers and it gives the answer right away, so you can check your hand calculation or skip straight to the result.
Quick tips
- Impatriate regime: 50% exempt, 60% with a minor child, 5 years.
- 2026 IRPEF: 23% / 33% / 43%.
- Check your payslip shows the reduced taxable base.