IRPEF is Italy’s personal income tax, charged at progressive rates: higher slices of income are taxed at higher rates. The brackets changed recently, and much of the English-language confusion comes from guides mixing two years’ rates. This guide uses the 2026 brackets throughout.
The 2026 brackets
For 2026 the national IRPEF brackets are: 23% on income up to 28,000 euros; 33% on income from 28,001 to 50,000 euros; 43% on income above 50,000 euros. Only the slice inside each band is taxed at that band’s rate. Earning 60,000 euros does not mean all of it is taxed at 43%; only the part above 50,000 is.
The trap is the middle rate. In 2025 it was 35%; for 2026 it is 33%. If a guide, calculator, or payslip still shows 35%, it is using last year’s rate. Always check the year on any IRPEF source before trusting it.
Worked example: 60,000 euros
First band: 28,000 x 23% = 6,440 euros. Second band: (50,000 – 28,000) = 22,000 x 33% = 7,260 euros. Third band: (60,000 – 50,000) = 10,000 x 43% = 4,300 euros. Total national IRPEF = 6,440 + 7,260 + 4,300 = 18,000 euros. The average rate is 30%, even though the top rate is 43%.
That 18,000 euros is national IRPEF only. Regional surcharges (usually around 1.2 to 1.7%, varying by region) and municipal surcharges (up to about 0.8%, varying by commune) sit on top. Deductions and tax credits, for example for dependent family members or specific expenses, then reduce the bill. Your final tax is rarely exactly the bracket calculation.
How it is paid
Employees usually have IRPEF withheld monthly by their employer, who acts as a withholding agent. The payslip shows the tax deducted, and an annual reconciliation (conguaglio) adjusts for the year’s total. Self-employed workers generally pay in instalments (acconti) during the year and settle the balance the following June. If your income changed sharply during the year, the reconciliation or balance can surprise you, so keep a rough running total.
Other income types have their own rules: rental income can use the flat-rate cedolare secca instead of IRPEF, and some financial income is taxed separately. If you have mixed income, do not force everything through the IRPEF brackets.
Quick checks
If a calculator gives a much higher figure, check whether it used 35% for the middle band or taxed all income at the top rate. If it gives a much lower figure, check whether it forgot the 43% band or used a different year’s bands. And always add surcharges before comparing with your payslip, or the payslip will look wrong when it is not.
Deductions and credits that change the bill
The bracket calculation gives gross IRPEF, but deductions and credits then reduce it. Employees get an employment deduction that phases out as income rises. Dependent spouse and children generate tax credits. Certain expenses, including some medical costs, education, and home renovation work, give deductions at 19% or other rates under specific rules.
Two taxpayers with the same 60,000 euro income can therefore owe different amounts. That is why online bracket calculators never match a payslip exactly: they show the starting point, not the final bill. Keep receipts for deductible expenses through the year, since reconstructing them in spring is painful and often incomplete.
Try it faster with the tool
You can follow every step above by hand, but the free Online Italy IRPEF 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
- 2026 brackets: 23% / 33% / 43%.
- Only the slice inside each band pays that band’s rate.
- Add regional and municipal surcharges on top.