LumenWhat are Italy's income tax (IRPEF) rates and brackets?
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Italy's personal income tax (IRPEF) has three brackets: 23% up to €28,000, 33% from €28,000 to €50,000 and 43% above €50,000. They apply to total income after deductible charges. The 2026 Budget Law (Law 199/2025) cut the middle rate from 35% to 33%. Residents are taxed on income wherever it is produced.
Key facts
| What | The law says | Source |
|---|---|---|
| First bracket | Up to €28,000: 23% | TUIR, art. 11(1)(a) |
| Second bracket | Over €28,000 up to €50,000: 33% | TUIR, art. 11(1)(b), as amended by Law 199/2025, art. 1(3) |
| Third bracket | Over €50,000: 43% | TUIR, art. 11(1)(c) |
| What the rates apply to | Total income, net of deductible charges (oneri deducibili, art. 10) | TUIR, art. 11(1) |
| Tax on income above €50,000 | €13,700 plus 43% of the part above €50,000 (it was €14,140 with the 35% rate) | Agenzia delle Entrate, Aliquote e calcolo dell’Irpef |
| Income above €200,000 | Some deductions at 19% are reduced by €440, to cancel the benefit of the lower rate | Law 199/2025, art. 1(4) (new TUIR art. 16-ter(5-bis)); Agenzia delle Entrate |
| Small pensions | No IRPEF if your only income is pensions up to €7,500 for the whole year, land income up to €185.92 and your main home | TUIR, art. 11(2) |
The 2026 change
The Budget Law 2026 (Law 199/2025, in force from 1 January 2026) replaced “35 per cento” with “33 per cento” in the second bracket. The Agenzia delle Entrate’s guidance says the law cut the second IRPEF rate from 35% to 33%, and that for taxpayers with total income above €200,000 the benefit is neutralised: the law reduces certain deductions at 19% by €440 (medical expenses excepted).
From gross tax to what you pay
The rates give the gross tax (imposta lorda). The law then subtracts the deductions it allows (detrazioni: for employment, pension or self-employment income, for dependants, and for some expenses such as health or mortgage interest) and any foreign tax credits under art. 165. The Agenzia’s guidance says deductions generally can’t exceed the tax due.
Residents and non-residents
The Agenzia’s guidance says a resident’s total income includes income wherever produced; a non-resident’s includes only income produced in Italy. Non-residents get only some deductions and no family deductions, unless at least 75% of their income is produced in Italy and they get no similar relief in their country of residence (the “Schumacker” rule).
Sources
- D.P.R. 22 dicembre 1986, n. 917 (TUIR), art. 11 (text in force, Normattiva) checked 2026-10-25
- Legge 30 dicembre 2025, n. 199 (Budget Law 2026), art. 1, commi 3–4 (Normattiva) checked 2026-10-25
- Agenzia delle Entrate, Irpef – Aliquote e calcolo dell'Irpef checked 2026-10-25
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