Italy Tax Tables - Tax Rates and Thresholds in Italy

Welcome to the iCalculator™ IT Italy Tax Tables page. Understanding the tax system is essential for individuals and businesses residing or operating in Italy. On this page, you will find links to current and historical tax tables for Italy, which provide detailed information on different tax rates and how they may affect you. Review the latest income tax rates, thresholds and personal allowances in Italy which are used to calculate salary after tax when factoring in social security contributions, pension contributions and other salary taxes in Italy

Choose a specific income tax year to see the Italy income tax rates and personal allowances used in the associated income tax calculator for the same tax year.

Overview of Taxation in Italy

Taxation in Italy is a structured system overseen by the Agenzia delle Entrate (Revenue Agency). The system covers various types of taxes, such as income tax, corporate tax, and value-added tax (VAT), among others. The tax year in Italy generally aligns with the calendar year, running from January 1 to December 31.

Types of Taxes

1. Income Tax (IRPEF): This is a progressive tax levied on an individual's income.
2. Corporate Tax (IRES): Companies are subject to this tax on their net profits.
3. Value-Added Tax (VAT): Applied to the purchase of goods and services.
4. Capital Gains Tax: Imposed on the profits from the sale of assets.
5. Inheritance and Gift Tax: Levied on assets received as inheritance or gifts.

Calculating Taxes

The calculation of taxes in Italy can be complex, given the range of allowances, deductions, and credits available. The basic formula for calculating personal income tax is:

Where:

1. Taxable Income: The income amount that is subject to taxation.
2. Gross Income: Total income earned by the individual.
3. Allowable Deductions: Specific expenses that can be deducted from the gross income.

Once the taxable income is determined, the applicable tax rate can be found in the tax tables.

Who Must Pay Taxes?

In Italy, both residents and non-residents are subject to taxation, albeit under different rules:

• Residents: Taxed on worldwide income.
• Non-Residents: Taxed only on income earned within Italy.

Filing and Payment

The deadline for tax filing usually falls in the late spring, and it's crucial to file the return on time to avoid penalties. Payment can be made through various methods, such as direct debit, wire transfer, or even in cash at designated offices.

Historical Tax Tables

We also provide historical tax tables to help you understand how the Italian tax system has evolved over time. These tables are invaluable for anyone involved in long-term financial planning or research.

Conclusion

Understanding taxation in Italy is crucial for both individuals and businesses operating in the country. Our current and historical tax tables serve as an invaluable resource to grasp the intricacies of the Italian tax system. Feel free to explore these tables to enrich your knowledge further.

For specific tax rates and additional details, please refer to the current and historical tax tables at the top of this page.